EVERYONE WANTS TO KNOW. It’s no secret that Nashville has landed itself on the list of the coolest cities in America. You’ve probably seen a few Instagram posts about it, heard a co-worker bragging about an upcoming vacation, or read about a few too-good-to-pass up festivals. We know—you’re intrigued and lucky for you we’ve got all the details. Soon, you’ll be that co-worker at the water cooler bragging about—you guessed it—your successful Airbnb investment. Below, everything you need to know about why and how to get in on Airbnb Nashville:
JUST HOW POPULAR IS IT?
GQ magazine dubbed the city “Nowville.” It’s a fast-growing metropolitan area with a population of more than 1.6 million people. The ingredients for the rise in Airbnb Nashville rise are as much economic as they are cultural and they’re attracting people from all over.
Between 2007 and 2012, Nashville’s young-adult population grew by 13.1 percent, making it number 10 in the nation. It’s been growing and is projected to keep growing. It’s a food, music, and start-up mecca, offering something for everyone.
WHAT MAKES IT SO POPULAR?
The city maintains the delicate and attractive balance sensibility of the traditional South and the vibrancy of the contemporary cultural scene. It’s a place of peaceful co-existence between traditional and radical, young and old, resident and visitor.
Economically, the city has been ranked among the top five regions for job growth. A national entrepreneurs’ group called it one of the best places to begin a tech start-up. The food and restaurant scene is critically acclaimed.
Unemployment in Davidson County, which includes Nashville, is about 5.7 percent, compared with 7.8 percent nationally. The job growth is predicted to increase by over 18% in next five years according to the Nashville Chamber of Commerce
Nashville is one of the most profitable cities for purchasing and renting out a property Airbnb-style and we’re here to help.
WHERE SHOULD YOU INVEST?
Once you decide to start looking for properties to buy, we’re here to provide you with the data. Through real estate analysis, Mashvisor allows you to view thousands of listings in different states, cities, and neighborhoods across the US in a matter of minutes.
We give you listings from various neighborhoods, letting you know exactly the potential income of all traditional and Airbnb Nashville properties in the area. Maximize your returns by finding our where the highest performing neighborhoods are. Gain an in-depth understanding about property value and determine your return on investment, knowing which investments in Nashville are good ones to make. We make it easier for you and deliver the real estate investment analytics on one platform so that you can make informed investment decisions. Investing in Airbnb Nashville has never been so easy.
WHAT ARE THE NUMBERS?
AIRBNB NASHVILLE’S INVESTMENT PROPERTY FIGURES
- Median Property Price: $535,000
- Airbnb Rental Income: $2,857.48
- Airbnb CoC Return: 5.68%
- Airbnb Cap Rate: 8.96%
NEIGHBORHOOD #1: Acklen Avenue Alliance
- Median Property Price: $659,900
- Airbnb Rental Income: $7,292.70
- Airbnb CoC Return: 10.06%
- Airbnb Cap Rate: 13.6%
NEIGHBORHOOD #2: Lockeland Springs
- Median Property Price: $669,975
- Airbnb Rental Income: $5,892.76
- Airbnb CoC Return: 9.25%
- Airbnb Cap Rate: 12.48%
NEIGHBORHOOD #3: Edgehill Community Garden
- Median Property Price: $400,000
- Airbnb Rental Income: $5,414.78
- Airbnb CoC Return: 6.75%
- Airbnb Cap Rate: 9.82%
WHAT’S UP WITH THE LEGALITIES OF AIRBNB NASHVILLE?
SHORT-TERM RENTAL PERMIT INFORMATION
- You have to apply in person at Metro Codes Department
- You have to have at least $1 million of insurance per occurrence
- If the property shares a wall or driveway with another property, you have to provide proof of notification to the other owner
- You have to pay a $50 permit fee
- Make sure your property does not have more than 4 sleeping rooms
- Know that permits cannot be transferred with sale of property
- Remember that permits are valid for 12 months & must be renewed annually
3 TYPES OF SHORT-TERM RENTALS TO KNOW
The type of property will determine the availability for granting of permit.
- Make sure the property is owner-occupied or associated with an owner-occupied principal residence on the same lot
- You have to include the rental of an entire dwelling unit to a single party of individuals, or
- If you’re renting out only part of the unit, make sure to include at a minimum a sleeping room (with bathroom) and the owner is generally present during the rental
- Make sure the address on owner’s driver’s license matches the deed as recorded with the Davidson County Clerk’s office.
#2 Not Owner-Occupied
- Make sure the property is not owner-occupied or associated with an owner-occupied principal residence
- Make sure it’s a single-family or duplex property
- Remember to include rental to a single party of individuals
#3 Not Owner-Occupied Multifamily (Multifamily apartments and condominiums)
- The property can not be owner-occupied or associated with an owner-occupied principal residence
- Make sure it’s in multifamily structures
- You have to include rental to a single party of individuals
VERIFY THE PROPERTY’S LEGAL STATUS
You should know that the city of Nashville has placed a cap on the number of non-owner occupied (see property type # 2) short-term rental properties allowed in each census tract, which cannot exceed more than 3% of the housing in that area.
BE AWARE OF THE PENALTY
Ready in invest in Airbnb Nashville? Before you begin renting out, be sure your property has the correct permit. If you have not been approved and are operating a short-term rental, you can be subject to a $50 fine for every day that the property is operating. In addition, you will be placed on a one-year waiting period to become eligible for a permit