How do you know if a short-term rental like Airbnb is right for you? This is a hot topic here in the Nashville area right now.
First, be aware that you need a permit to have an Airbnb property.Visit the Nashville metro government website’s pageto learn what you’ll need to apply for one. It will cost you $50 and you’ll want to download the QLESS app, which will allow you to get in line at the office.
You also want to be sure you have insurance for it. Airbnb offers you a $1 million per occurrence once you put your house on their site, which you’ll need to apply for a permit. Be prepared for a lengthy process.
You also only have to apply for an owner-occupied permit right now, meaning you have to live in the home. There’s a vote coming up to get rid of all non-owner-occupied permits by the end of 2019, so you can’t even apply for one at this time.
“You can only seek an owner-occupied property permit.”
Keep the taxes in mindtoo, as you’ll have to pay hotel occupancy taxes and some others; there are monthly and quarterly taxes to pay. It’s a lot of paperwork, so it can be helpful to hire someone to help you stay on top of it all.
Finally, you need to consider the logistics of how it will actually work with your home. As an owner-occupied short-term rental property will you rent out a room, or leave when you have guests? Will you rent it out for CMA Fest or the Stanley Cup next year when the Predators make it back again? Will you rent it only when you’re on vacation yourself? The best case scenario is having a house with basically a basement apartment and a second entrance.
This kind of rental can really help bring in some extra income to help pay for things like your mortgage or vacations. If you have any questions about this or any other topics in the real estate world here in Nashville, don’t hesitate to give me a call or send me an email soon. I’d be glad to help.