After Lawsuit, Nashville Takes Another Swing At Airbnb Regulations

Nashville appears to be taking the middle road on regulating short-term rental properties, such as Airbnbs and VRBOs. A new Metro Council bill to be taken up Tuesday defers the suggestions that would have dramatically limited these properties.

At one point, the council was haggling over a half-dozen changes to its short-term rental laws. Then,
a local judge ruled that what Nashville already had on the books was too vague.

Now, a single rewrite has arrived, attempting to tidy up the ordinance.

“It is our best and latest attempt,” said Councilwoman Burkley Allen. “We started this process with only a few other cities to look at for guidance and tried to take what seemed to be the best from other cities, as well as community input.”

Allen first crafted Airbnb rules last year — most of which remain intact.

“This ordinance basically encapsulates all the previous changes that have been made in recent months,” she said.

Much of what’s proposed responds to the judge’s order, such as defining a short-term rental as a place to stay for no more than 30 days — booked online — and where hosts cannot serve food.

If passed, the city would keep its cap on Airbnbs run by investors, which stands at 3 percent of the housing stock in each census tract.

“Some neighbors would like to see it dramatically reduced or eliminated,” Allen said. “We are not addressing that.”

She said the quota could be revised later, but the council is waiting on a report from a consultant who is studying short-term rental regulations.

The latest council bill also would clarify that for a property that draws three or more complaints, like for excessive noise, the rental permit can be revoked.

Anyone caught without a permit at all can be fined $50 per day.

“There are a number of properties operating with no problems, that fit into the neighborhood,” Allen said. “But what you hear about is the problem properties that do have an affect on the quality of life in that area.”