Investing in Short Term Rental Properties in Middle Tennessee
Investing in short term rental properties can be a rewarding venture, offering a unique combination of steady income and property appreciation. Middle Tennessee, with its vibrant cities and charming small towns, is an excellent location for such investments. This region is a hub of culture, music, and southern hospitality, attracting millions of tourists each year. As a result, the demand for short term rentals is high, making it a lucrative market for real estate investors.
Types of Short Term Rental Properties
There are two primary types of short-term rental properties in Middle Tennessee: owner-occupied and non-owner occupied.
Owner-Occupied
Short Term Rentals
Owner-Occupied Short Term Rentals are properties where the owner resides and rents out part or all of their home for short periods. These can include renting out a single room, a basement suite, or the entire house when the owner is away.
Non-Owner Occupied
Short Term Rentals
Non-Owner Occupied Short Term Rentals are properties that the owner does not reside in and are exclusively used for short term rentals. These can include vacation homes or investment properties purchased specifically for short term rental purposes.
Permitting
Permitting requirements for short term rentals in Middle Tennessee vary by city and county. For example, in Nashville, both owner-occupied and non-owner occupied short term rentals require a permit from the Metro Codes Department. The application process includes providing proof of payment of all taxes, a floor plan, proof of liability insurance, and a notarized affidavit confirming that all provided information is true and accurate, among other things.
Revenue and ROI
According to data from Mashvisor, the median price for a property in Nashville is $474,900, with an average Airbnb rental income of $2,883 per month. Airdna data shows an average occupancy rate of 58%, which can help you estimate potential revenue.
To calculate your return on investment (ROI), you'll need to consider your gross rental income, total property expenses, and net rental revenue. Investopedia provides a detailed guide on how to calculate ROI for rental properties.
The Jule Team Advantage
At The Jule Team, we specialize in assisting our clients with purchasing short term rentals in Middle Tennessee. We have both extensive personal and professional experience with investment properties in the region. Whether you're considering buying land, a short term or a long term rental property, we can assist.
According to the Nashville Business Journal, Nashville was named one of the best cities in the US to open an Airbnb. We are ready to assist you in reviewing and analyzing properties to get the most return. We work hard to stay in the know with all commercial and residential developments happening in our area.
Investing in a short term rental property can be a profitable venture, and with the right guidance and expertise, you can navigate the process with ease. Contact The Jule Team today to start your investment journey in Middle Tennessee's thriving short term rental market.
