As a Realtor who is known as a short-term rental expert in Nashville, I get a lot of calls from Realtors about their short-term rental (STR) clients. The top questions I receive are about the current rules and regulations in Davidson County – “What even are they?” being the most prominent question and secondly, where to list or find STR listings, and lastly, should I be referring this client out? The first two questions could have their dedicated post, but I’ll touch on them quickly.
The current rules and regulations for STRs have remained stable in recent years in Davidson County. However, because they changed so much before 2020, agents usually want to ensure the same rules are still in place, and I can’t blame them for double-checking. But, when I’m having the conversation and an agent asks me questions referring to rules that haven’t been in place since 2017 (ex. limit to # of STRs in a certain zone, or Type I, II, III), a big red flag goes up for me because they’re telling me that they have not been involved in the STR market at all, or at least not for a long while. I try and give them as many resources as possible so they can adequately help their client, but more on this later.
When searching for STR properties, agents can feel like they are on an expedition with Indiana Jones searching for the holy grail. It can seem like piecing together a puzzle to find the prize: a property that is eligible for a non-owner-occupied (NOO) STR permit. There is no super simple answer for this, but what I do tell people is that if it DOESN’T say NOO STR in the remarks on the MLS listing, it’s highly unlikely that the property is eligible for that type of permit. Most agents will make sure to include that information if it’s applicable. So, putting those terms in your search criteria can be a good way to find most of those listings. For new developments doing pre-sales that may not be on the MLS yet, it’s good to know the agents and teams that typically have that type of product and get on their email lists.
What I haven’t touched on yet is financing an STR purchase, the permitting process, setting up property management, making sure they are working with a CPA who understands cost segregation, getting a great designer in there to make the property stand out and be more profitable, and the puzzle pieces in between that a good STR agent is going to be able to help their client be aware of and have reliable resources for. It’s always the client’s responsibility to do their due diligence, of course, but if you are working with a new STR client, they are going to be looking to you, their Realtor, for guidance.
Once I get to the end of my phone call with agents, a lot of times they confide that they don’t even want to mess with STR clients. These clients usually take more time to work with, and if the agent isn’t already educated on the above, the agent may not be holding up their ethics promise by pretending they know this niche market. I am happy to answer questions for any agent who calls–simply because I do have concerns for their client if the agent doesn’t know these things. I’m always happy to share resources with other agents to help the greater good and make sure we are all representing ourselves, as Realtors, in a professional manner.
At the end of the day, we as Realtors need to let each other know it’s okay to refer clients out when it makes sense. In my experience, with the right partnership and referral set-up, the referring agent can stay involved and learn in the process, and their client usually thinks even more highly of them for recognizing it’s a good idea to bring in an expert on such an important sale or purchase. Not only do they keep their client for future sales, but now that agent is the hero who had the resources to make sure the client’s needs came first.
Deborah Vahle is a Partner on the CityLiving Group mega team at Parks and has been involved with the STR world since 2016. She is a Mom of 5 and is currently being educated by her children on all of the Taylor Swift albums and easter eggs.
