Issues around short term rentals and subletting are dividing communities across the U.S. On the one hand, people want to have the ability to use services like Airbnb to make money, while many others are suggesting that runaway short term rental markets are threatening the character of neighborhoods. This is abundantly true in Nashville where the government has tried to pass updated rules on Airbnb sublets in Nashville neighborhoods. Now some residents are arguing that these rules don’t go far enough.
In 2015, under pressure from the hotel industry, the city put a 3 percent cap on the number of non-owner occupied homes that could be licensed for short term rentals in a neighborhood. Hosts were also required to provide at least $1 million in liability insurance coverage for renters and forbade homeowners from using yard signs to advertise their homes for rent.
Temporary Setbacks In Nashville Sublet Laws
This year, critics of excessive short term subletting cite high occupancy, noise, and trash as reasons to think about restricting the use of Airbnb and other services to sublet properties out on a daily or weekly basis. Much of the controversy often centers around desirable neighborhoods that are popular for tourism in a city short on hotel rooms. Earlier this year, a story in the Tennessean describes resident groups squaring off in regards to how subletting in Nashville is generally handled by the city. Since then, attempts at further rule development have largely gone nowhere, with some property owners actually suing the city over restrictions.
Nashville has had to re-think restrictions on short term rentals after an initial law was ruled unconstitutional in 2016. However, the city is still moving forward with their rules and regulations on subletting for the good of city residents. Landlords have the challenge of staying up to date on the current laws and monitor their properties carefully to ensure that their tenants are in compliance, and essentially protecting their real estate investment.