Nashville is a great place to visit. There are many reasons to do so. These Nashville vacation rental management tips can help you get the 5 stars that your guests want.
Nashville short term rental offers live music, amazing food, exciting sports and stunning natural beauty. The city’s tourist numbers exceeded all records last year with 15.2 Million visitors who spent more than $7 Billion. This staggering number of visitors is expected to rise yearly, surpassing national and state averages. The third of all tourism spending in Tennessee is generated by visitors to Nashville. You might be interested in investing in Nashville’s short-term rental. These are some things to consider.
In Your Primary Residence
You might be interested in renting a bedroom in your house for a weekend. That’s fine. What about renting your entire house for vacation? It’s possible. Although you will need a permit, regulation is relatively simple. Anyone can easily follow them.
Investors Note: Metropolitan Government Has Instituted Guidelines For Non-Owner Occupied STRPs.
There have been many changes in this area recently. The city has effectively phased out the non-owner permits within residential neighborhoods. You will need a city permit to run a short-term rental company from a non-owner-occupied home.
- In R and RS zoned properties, new permits that are not owner-occupied are not allowed. Permit holders who are already in these zones may be eligible for renewals. However, the permits cannot be transferred if the property sells.
- Only new permits that are not owned will be issued. They must have conditions (PC) in RM2 to RM20-A and RM40 to RM100-A. MUN and MUL-A. MUG and UUG-A. MUI and MI-A. OG, OR20 to OR40-A. ORI and ORI.A. CS and CS.-A. CA, CF.
- Only if the SP or PUD allows permits for the specific plan (SP) will zoned properties (or properties within a Planned Unit Development) be issued.
Condos Have Different Rules
Multi-family properties generally do not fall under the above rules. Condos are easier to manage. Condominiums are also more easily managed. They have more central locations, which is a plus for investors and tenants. However, almost all condo projects have bylaws prohibiting them from being used as an executive or short-term rentals.
One example is the Bennie Dillon condos in downtown Nashville. These bylaws state that investors can own no more than 25%, and all leases must not exceed 180 days.
This language will, in general speaking, be automatically incorporated into the bylaws. A condominium development would need to modify its bylaws to allow short-term rentals.
Bylaw restrictions are common in townhomes, along with some attached HPRs (horizontal Property Regimes). Even single-family home communities could ban short-term rentals.
Developers are now focusing their efforts on new construction specifically for investors who are looking for units in MUL communities.
Management fees can add up.
We are not property managers, and we are realtors. The property management industry has seen a boom in short-term rentals, especially in areas like Nashville, which has many tourists and vacationers. There are many management companies available to choose from.
Do Your Research
Although, it is not possible to calculate rents, vacancies, and cap rates in the same blog. But you can get to know them by doing research. You can also talk to any consultant for the same. As short-term investments are so new in Nashville, there are inherent risks. We are happy to assist you in buying, selling, or to finance the property that best suits your needs. Due diligence is important when investing.