Everyone investing in real estate opts for finding the best properties on the market. These are the ones which will bring higher return on investment. Real estate investors all over the world perform real estate market analysis together with investment property analysis to ensure the success of their business. When it comes to investing in Airbnb properties, however, performing real estate market analysis as well as investment property analysis is simply not enough. Every prosperous Airbnb host knows that the growth of short term rentals strongly depends on their location. The successful Airbnb rentals are not necessarily the ones placed in the hottest destinations at the moment. When considering the best location, the real estate investor should take into consideration the occupancy rate of the specific place. Of high importance are also the average return on investment for the area, the annual profit, and rental income. Also, do not forget about the Airbnb laws and regulations. In this blog, we will look deeper into Airbnb Nashville. The Nashville real estate market is considered to be one of the best in terms of Airbnb rentals. So, let’s not lose more time and explore in detail Airbnb Nashville.
#1 About Nashville Real Estate Market for Short Term Rentals
In order to better understand the situation with Airbnb Nashville, we first need to reveal some details about the city itself as well as the Nashville real estate market for short term rentals. The City of Nashville is the capital of State of Tennessee. This location is one of the best housing markets in the country in early 2018. This is primarily due to the fact that the constantly growing and developing infrastructure of the city does not increase significantly the housing prices. Thus, the Nashville real estate market stays affordable, yet, evolving at the same time. Another reason why Airbnb Nashville is such a desired place for investing in Airbnb properties is that the city provides one of the most advanced infrastructures for Airbnb rentals. Needless to say, in order to be so prosperous, the city needs to attract various tourists and other short term tenants. That is exactly the case with Airbnb Nashville. There is a large number of tourists visiting the city annually. This is due to the fact that Nashville has many legendary country music venues. Additionally, many historic as well as cultural sights attract visitors from the United States as well as from around the globe. Moreover, the city hosts various business meetings every year, which is another reason for the growing number of Airbnb guests. In order to fully grasp the situation with Airbnb Nashville at the moment, we need to explore some Airbnb data.
#2 Airbnb Nashville: What Do the Numbers Say?
Conducting real estate market analysis is of extreme importance when it comes to investing in Airbnb properties. Here are some of the statistics regarding Airbnb Nashville provided by AIRDNA. As previously mentioned, there is a large number of short term tenants in the area. For this reason, it is not a surprise that Nashville Airbnb investments score a high occupancy rate, 61%, to be precise. Nashville is also one of the most profitable cities with regards to Airbnb rentals. The annual profit which Airbnb Nashville properties generate is calculated at $26,950 with an average daily rental income of $226. Another thing to note about Nashville Airbnb investments is that the top 90th percentile generates annual revenue of $67,543, the top 75th percentile – $42,618 and the median – $30,013. The average annual mortgage rate for Nashville Airbnb investments is $15,668. However, when investing in real estate, in general, and Airbnb Nashville properties, in specific, it is important to conduct investment property analysis as well. Mashvisor’s rental property calculator can help you in acquiring quick and accurate results such as cap rate, cash on cash return, return on investment, etc. for various Airbnb Nashville properties. Using the real estate investment tool can assist you in making investing in real estate successful and stress- free.
#3 Airbnb Nashville: Legal Issues
As you might probably already know, Airbnb legal requirements vary from place to place. This is why going over the main legal issues associated with Airbnb Nashville will help in getting a fuller and more detailed picture with regards to short term rentals in the area. As previously described, Nashville is a city with a constantly developing infrastructure. Therefore, with the development of the infrastructure of the city comes the growth of Airbnb Nashville. This, however, is a subject causing controversy. Many people see this as an opportunity for the city and its future appearance on the US real estate market. Nevertheless, a lot of the people living in residential-zoned neighbourhoods see short term rentals as a threat to their safety as well as tranquillity. Special attention is paid to the non-owner occupied Airbnb rentals in residential zones, which often turn into party houses and disturb the locals. There have been many debates and strikes on the topic. Recently, the City Council has decided to combat the escalation of Airbnb Nashville properties in the residential areas. Additionally, there are tax regulations that apply for Airbnb rentals in the area. There is a continuous change in Airbnb legal requirements and regulations at the moment. Thus, it is advisable to research the laws that apply to you, your Airbnb rental, and its neighbourhood. Even though there are some legal issues in the Airbnb Nashville market, the city is still one of the best places to invest in short term rentals in the early 2018.
Are you interested in learning more about Nashville or other profitable cities for investing in real estate? To get access to our real estate investment tools, click here to sign up for a 7-day free trial of Mashvisor today and enjoy 15% off for life.