Nashville Short Term Rental Market

Summary

The Nashville short term rental market is mature, stable, and regulated. It is known for it's rooftop decks, "instagram walls" and Bachlorette parties. Downtown's broadway, a string of 3-level bars with live music on each level, attracts millions of visitors each year. These type of guests like to stay within 5 to 6 miles of downtown.

Real estate prices are not exactly cheap in Nashville and have risen quickly in the last few years. However, local regulations have slowed the number of new units. (Get a permit). Saturation is still a buzzword here as some owners have struggled to make a profit in 2023.

Short term rentals can be found at $350,000 to nearly $2 million, but finding a deal that pencils out is tough. (Click here for all active listings)

There's a certain "recipe for success" when buying in Nashville, which I'm happy to go over duirng a consultation.

Nashville has over 70 vacation rental management firms for you to choose from. If that's a bit overhwelming, check out my free Ebook "Disaster BNB" to learn how to vet property managers. My clients get the entire database of local managers.

The market has become increasingly competitive. You'll see hottubs on rooftop decks, professional interior design, and unique themes in an attempt to grab guests attention.

Regulations & Permits

Regulations in Nashville/Davidson County are dependant on zoning. Residential homes are no longer allowed to have non owner occupied (NOO) permits.

New NOO permits are issued in commercial, office, and mixed use zoning. Often that means you'll see STRs in less desireable places near freeways, busy roads, commercial/industrial areas, or "bad parts of town."

Permits cost $330 to the city and I can help you get yours for an additional processing fee. Permits take 1-3 weeks to obtain, once all paperwork is collected. Permits must be renewed annually for $330.

For non-condos, expect to pay $150 for a fire certification fee.

Surrounding counties, and a couple of cities in Davidson county, have their own, usually very strict, regulations on airbnbs. Rutherford county is unregulated but charges sales tax.

If you would like local regulation information please email me. It's best to get started on permitting as soon as you get a property under contract or expect to begin renting.

A Nashville rooftop deck

Big groups mean more beds

Professional Interior Design

Music themes: Dolly Parton, Johnny Cash, guitars

Looking for Deals?

The local Nshville MLS is NOT a great way to search for short term rentals. They just don't have good search filters. A lot of properties labeled as potential STRs are in residential zoning, and not eligible for Non-owner occupant STR permits.

My clients get access to a database of rentals, updated daily, that can be sorted by price, bedrooms, days on market, and other information.