Short Term Rental Trends

Tennessee Airbnbs & STRs

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RedAwning offers vacation rental property management for busy vacation rental owners and Airbnb hosts. Starts at 10% of revenue.
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Current Vacation Rental Performance in Tennessee

Market Trends and Outlook

As of 2024, the vacation rental market in Tennessee is showing promising signs of recovery and growth. Here are some key points:

  • Occupancy Rates and Demand: Despite a 1.5% year-to-date decline in occupancy rates, May 2024 saw a significant 3.1% increase in occupancy, indicating a strong recovery. Demand is outpacing supply, particularly in coastal and rural locations, which is expected to maintain strong occupancy rates for the remainder of the year.

  • Regional Performance: Cities like Nashville, Knoxville, and Chattanooga are emerging as prime locations for vacation rental investments. Nashville, known for its vibrant music scene, continues to attract high rental incomes and occupancy rates. Knoxville and Chattanooga are gaining traction due to their blend of urban amenities and natural attractions.

  • Economic Factors: Economic shifts, including wage growth against inflation and stabilized interest rates, are forecasted to enhance tourism and vacation rental sectors in 2024. This is expected to lead to increased travel spending and a rebound in vacation rental demand.

Investment Opportunities

  • Top Locations: Areas such as Gatlinburg, Pigeon Forge, and Sevierville remain popular due to their proximity to national parks and family theme parks. Nashville's suburban and rural markets are also on the rise, offering lucrative investment opportunities.

  • Financial Performance: Properties in Tennessee can generate high rental income, with some areas averaging around $3,950 per month. The price-to-rent ratio and cap rates in places like Pegram indicate a favorable market for short-term rental investments.

Regulatory Environment

  • State and Local Regulations: Tennessee's short-term rental market is governed by the Tennessee Short-Term Rental Unit Act. Operators must comply with requirements such as maintaining liability insurance, collecting and remitting taxes, and adhering to zoning laws and safety standards.

Strategies for Success

  • Marketing and Amenities: To increase occupancy rates, strategies such as listing on multiple sites, using high-quality photos, enabling instant booking, and offering dynamic pricing are recommended. Elevating amenities and incentivizing positive reviews from guests can also enhance property performance.

Overall, Tennessee's vacation rental market is poised for growth, driven by strong demand, favorable economic conditions, and the state's diverse and attractive tourist destinations.

Current Airbnb & VRBO Trends by City

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FAQ

What does your pricing structure look like?
Our prices start at 10% of revenue. You can check out our pricing page for more information.
What types of vacation rental properties do you manage?
We manage a wide range of vacation rental properties, including single-family homes, condos, apartments, and luxury villas. Our services are tailored to meet the unique needs of each property type.
How do you handle guest support?
Our team provides 24/7 guest support, handling all inquiries, booking assistance, and any issues that may arise during a guest's stay. This ensures a seamless experience for your guests.
What is included in your damage waiver?
Our damage waiver provides $3,000 in coverage per booking, protecting you from accidental damages without the need for security deposits. This coverage is automatically included with every booking.
How does the payment process work?
We handle all aspects of the payment process, including processing payments, managing declined cards, and providing chargeback protection. Funds are deposited directly into your account, ensuring a smooth and secure transaction.
Can I still use my own booking website?
Absolutely! We offer a direct booking website service that allows you to showcase your property and accept bookings directly, bypassing the fees charged by major booking sites.
How do I get started with RedAwning?
Getting started is easy! Simply contact us for a free consultation, and our team will guide you through the onboarding process to ensure a smooth transition to our platform.
Why is RedAwning better than other property management companies?
RedAwning sets itself apart from other property management companies with a technology-driven, cost-effective approach that offers both full-service and partial management options, catering to vacation rental owners who value flexibility and control. Unlike competitors like Vacasa or AvantStay, which focus solely on full-service management with fees ranging from 25-50% of income, RedAwning provides a choice: comprehensive oversight including marketing, reservations, guest support, and maintenance, or a partial-service model emphasizing marketing and bookings across 50+ platforms like Airbnb, Vrbo, and Booking.com, potentially increasing bookings compared to narrower-channel options like Evolve. RedAwning's fees start at 10%. Having served the industry for 15 years, RedAwning combines experience with lower fees and rapid onboarding—listing properties in an afternoon—appealing to hosts who want efficiency without losing decision-making power, though it may not suit those needing extensive local support like Vacasa provides. Its scale (20,000+ properties across 10,000 destinations) and data-driven pricing give it an edge over Evolve’s simpler approach, making it a versatile choice for tech-savvy hosts seeking tailored management solutions.