Though Nashville recently released a permit limit on Airbnb and short-term vacation rentals, there’s still plenty of opportunity for investors to make money on vacation rentals! After all, many vacationers both save money and get a better local experience when they rent rooms, condos, and homes instead of hotels. Read on to learn more!

Vacation Rentals

Income Possibilities

What if I told you that I knew someone who rented out their Green Hills condo as a vacation rental… and made more than $40,000 a year just from those rentals?

Nashville is a piping-hot destination for tourists, weddings, and business visitors; several major magazines have rated it THE summer destination in the country. And in part because of that, short-term rentals, vacation rentals (called VRBO in industry lingo) and airbnb opportunities can net thousands of dollars a month, with very little legwork from the property owner. Some have reported getting two or three times the income amount of their mortgage payment.

But what sorts of properties see that amount of business? What are the keys to having an income-producing vacation rental?

The Perfect Vacation Rental

There’s a formula for having the perfect vacation rental! The first key factor is, of course, being able to consistently make more in income than the price of the property! For this reason, I recommend multi-room condos or townhomes, which are often considerably cheaper than comparable homes.

The second key factor? Being in great, walkable neighborhoods with easy transit! Key areas are the Gulch, Midtown, 12 South, Edgehill, Hillsboro Village, Belmont, East Nashville, and West End. The more that a vacationer can do without relying on a car, the more fun they’re likely to have– which translates into higher ratings, and more rentals.

Great decor is the last big item! A picture is worth a thousand words, and every photo you have of your rental will help sell it to potential vacationers! So while you shouldn’t break the bank on decorating (because unfortunately some of your renters could party a little too hard), make sure to furnish and decorate the space just like a home, and give it a lot of true Nashville spirit.

Legal Considerations

I’m not a lawyer, and I can’t advise you like one! But I can tell you who to call if you have questions. The Metro Finance Department and the Metro Codes Department are the agencies which are designed to help advice you, and should give legally sound advice. You should be aware that Nashville has recently created a special ordinance to regulate vacation rental properties, called Ordinance 2014-951. The most significant item is that it requires that short-term rentals have a city-provided permit.

While that sounds irritating, the profits of this permit is actually used to support Nashville’s affordable housing program. But that’s not the only headache to look forward to! Nashville requires airbnb and vacation rental owners to be registered as a business so that they can collect sales tax… but also to collect the same ‘hotel tax’ which hotels are forced to levvy on visitors, as well.

New Listing - 3 hours online
$400,000
Single Family Home For Sale
Active
3
BEDS
1
TOTAL BATH
948
SQFT
703 S 13th St
Nashville, TN 37206
Payne Blakemore Cummings Subdivision
New Listing - 3 hours online
$524,800
Single Family Home For Sale
Active
3
BEDS
2
TOTAL BATHS
1,645
SQFT
204 Antioch Pike
Nashville, TN 37211
Airdrie Subdivision
New Listing - 3 hours online
$475,000
Condo For Sale
Active
3
BEDS
2
TOTAL BATHS
1,886
SQFT
4500 Post Rd #44
Nashville, TN 37205
The Hillwood Subdivision
New Listing - 3 hours online
$529,900
Single Family Home For Sale
Active
3
BEDS
1
TOTAL BATH
1,340
SQFT
201 Manchester Ave
Nashville, TN 37206
Beaumont Place Subdivision
New Listing - 3 hours online
$427,500
Condo For Sale
Active
1
BED
1
TOTAL BATH
900
SQFT
1803 Broadway #528
Nashville, TN 37203
Bristol On Broadway Subdivision
New Listing - 3 hours online
$529,000
Condo For Sale
Active
1
BED
1
TOTAL BATH
625
SQFT
610 21st Ave #306
Nashville, TN 37203
The 1865 Subdivision
New Listing - 3 hours online
$582,733
Condo For Sale
Active
1
BED
1
TOTAL BATH
954
SQFT
1350 Rosa L Parks Blvd #464
Nashville, TN 37208
Werthan Lofts Subdivision
New Listing - 3 hours online
$619,900
Condo For Sale
Coming Soon
3
BEDS
3
TOTAL BATHS
2,023
SQFT
2106b Burns St
Nashville, TN 37216
2106 Burns Street Townhome Subdivision
New Listing - 3 hours online
$399,900
Single Family Home For Sale
Coming Soon
2
BEDS
1
TOTAL BATH
1,346
SQFT
1112 N 5th St
Nashville, TN 37207
Oakwood Park Subdivision
New Listing - 5 hours online
$645,000
Single Family Home For Sale
Coming Soon
3
BEDS
3
TOTAL BATHS
1,452
SQFT
710 Buchanan St #14
Nashville, TN 37208
Salemtown Cottages Subdivision
New Listing - 20 hours online
$485,000
Single Family Home For Sale
Active
3
BEDS
2
TOTAL BATHS
1,186
SQFT
2080 Whitney Ave
Nashville, TN 37210
Woodycrest Subdivision
New Listing - 20 hours online
$350,000
Single Family Home For Sale
Active Under Contract
3
BEDS
2
TOTAL BATHS
1,050
SQFT
3325 Panorama Dr
Nashville, TN 37218
Bordeaux Hills Subdivision
New Listing - yesterday
$569,000
Single Family Home For Sale
Active
1
BED
1
TOTAL BATH
806
SQFT
900 20th Ave #804
Nashville, TN 37212
The Adelicia Subdivision
New Listing - yesterday
$539,000
Townhouse For Sale
Coming Soon
3
BEDS
3
TOTAL BATHS
1,700
SQFT
104 Stokeswood Pl
Nashville, TN 37215
Stokeswood Subdivision
New Listing - 2 days online
$349,900
Condo For Sale
Active
1
BED
1
TOTAL BATH
649
SQFT
1677 54th Ave #419
Nashville, TN 37209
Silo West Nashville Subdivision
New Listing - 2 days online
$245,000
Condo For Sale
Active
2
BEDS
1
TOTAL BATH
968
SQFT
515 Basswood Ave #J 92
Nashville, TN 37209
Rock Harbor Subdivision
New Listing - 2 days online
$485,000
Townhouse For Sale
Active
2
BEDS
3
TOTAL BATHS
1,338
SQFT
4244 Hillsboro Pike
Nashville, TN 37215
Hillsboro Quarters Subdivision
New Listing - 2 days online
$295,000
Single Family Home For Sale
Active Under Contract
2
BEDS
1
TOTAL BATH
762
SQFT
224 Graylynn Dr
Nashville, TN 37214
Eva Mor Heights Subdivision
New Listing - 2 days online
$599,900
Single Family Home For Sale
Active
3
BEDS
3
TOTAL BATHS
1,778
SQFT
1720 Underwood St
Nashville, TN 37208
D T Mcgavock Others Subdivision
New Listing - 2 days online
$449,900
Single Family Home For Sale
Active
3
BEDS
3
TOTAL BATHS
2,025
SQFT
249 Clovernook Dr
Nashville, TN 37210
Clover Nook Subdivision