Airbnb & VRBO Performance in Nashville Tennessee.

Short-Term Rental Regulations in Nashville, Tennessee for 2024

Permit Requirements

• Obtaining a Permit: All short-term rental properties must obtain a permit from the Metro Codes Department before listing.
• Types of Permits: There are two types of permits: owner-occupied and non-owner occupied.
• Owner-Occupied: For properties where the owner resides on-site.
• Non-Owner Occupied: For properties managed remotely by the owner or a designated host.

Documentation and Fees

• Required Documentation: Includes proof of payment of all due taxes, certified floor plan, proof of insurance, notarized affidavit, proof of notification of adjacent property owners, and compliance with HOA agreements.
• Permit Fee: $313.

Zoning Laws

• Zoning Restrictions: Owner-occupied short-term rentals are permitted in all zoning districts that allow residential use (excluding NS districts). Non-owner occupied short-term rentals are only permitted in specific non-residentially zoned areas.

Safety and Operational Standards

• Safety Requirements: Properties must meet all applicable state and local building and fire safety codes, including the installation of smoke alarms.
• Maximum Occupancy: Limited to two persons per bedroom plus an additional four persons for a maximum of 12 persons.
• Responsible Party: A responsible party must be available locally within a 25-mile radius for non-owner occupied properties.

Tax Obligations

• Tax Remittance: Operators must remit business, sales, and hotel occupancy taxes to the city and state. Online platforms may collect state sales and local hotel occupancy taxes on behalf of hosts.
• Local Taxes: The local hotel occupancy tax is 7% plus a nightly fee of $2.50, and the combined sales tax is 9.25%.

Compliance and Renewal

• Annual Renewal: Permits are valid for 365 days and must be renewed annually before the current permit expiration date.
• Compliance Rules: Properties must comply with noise restrictions, waste management provisions, and other operational rules. Failure to comply can result in the revocation of the permit.

Additional Regulations

• Signage and Visibility: All signs on the property must be compliant with relevant regulations, and no recreational vehicles, buses, or trailers can be visible on the street or on the property.
• Food Preparation: No food can be prepared or served to guests.
• Principal Renter Age: Principal renters must be 21+ years of age.
• Single Party Rentals: Rentals are limited to a single party of individuals.

Reporting Violations

• Complaint Process: The Metropolitan Government of Nashville and Davidson County has a process for reporting illegal short-term rental properties and other nuisance complaints through hubNashville.

Top Neighborhoods for Airbnb Revenue in Nashville, Tennessee

1. Rutledge Hill

• Median Property Price: $890,000
• Airbnb Annual Revenue Potential: $96,601
• Gross Rental Yield: 10.85%
• Appeal: Rutledge Hill is highly attractive due to its proximity to downtown Nashville, making it a prime location for guests who want to be close to the city's vibrant nightlife, restaurants, and music venues. The high gross rental yield indicates strong potential for investors.

2. Downtown Nashville

• Median Property Price: $999,999
• Airbnb Annual Revenue Potential: $83,585
• Gross Rental Yield: 8.36%
• Appeal: Downtown Nashville offers walking distance to iconic locations like Broadway, the Honky Tonk Highway, and various live music venues. Guests are drawn to the central location, ease of access to major attractions, and the lively atmosphere.

3. East Nashville

• Median Property Price: $624,950
• Airbnb Annual Revenue Potential: $59,459
• Gross Rental Yield: 9.51%
• Appeal: East Nashville is known for its eclectic and vibrant atmosphere, featuring local hot spots, restaurants, and artistic venues. Guests appreciate the unique, offbeat experience and the neighborhood's walkability to various local gems.

4. 12 South-Melrose-Belmont

• Median Property Price: $775,000
• Airbnb Annual Revenue Potential: $67,109
• Gross Rental Yield: 8.66%
• Appeal: This neighborhood is popular for its trendy restaurants, shops, and the iconic "I believe in Nashville" mural. Guests enjoy the area's charm, walkability, and easy access to other key Nashville destinations.

5. Music Row

• Median Property Price: $329,900 (for 1-bedroom units) / $649,900 (general median)
• Airbnb Annual Revenue Potential: $27,747 (for 1-bedroom units) / $4,508 (general average)
• Gross Rental Yield: 8.41% (for 1-bedroom units) / 5.71% (general average)
• Appeal: Music Row is a hub for music enthusiasts, with numerous record labels, studios, and music venues. Guests are attracted to the area's rich musical history and the convenience of being close to Vanderbilt and Belmont universities.

These neighborhoods stand out due to their unique attractions, central locations, and high demand from tourists and travelers, making them highly profitable for Airbnb investors.

Creating an Inviting Nashville Airbnb: Tips for Furnishing and Design

To make your Nashville Airbnb stand out and reflect the city's unique style, consider the following tips:

Comfort and Quality

• Invest in comfortable, quality furniture: Ensure that the furniture, including the mattress and sofa, is sturdy and comfortable to avoid any discomfort for your guests.
• Provide ample lighting: Use lamps to create warm, ambient light. Aim for at least one lamp per bedroom and two or three in the living space to avoid harsh overhead lighting.

Essential Amenities

• Include basic amenities: Offer coffee, tea, shampoo, conditioner, hand soap, body soap, towels, washcloths, toilet paper, bath mats, iron, and ironing board to ensure guest comfort.

Local Touches

• Incorporate local references subtly: Use unique, vintage local art and decorative objects. Avoid clichés like overly thematic local signs; instead, opt for items like vintage maps or local photographs.
• Offer local discounts and goodies: Partner with local businesses to offer discounts to your guests. Consider providing local treats or products to enhance their experience.

Space and Layout

• Create spaces for gathering: Ensure that the living room, dining room, and other common areas can comfortably accommodate the number of guests listed in the occupancy. This fosters a sense of community and relaxation.
• Maximize occupancy with comfort: Design the space to bring people together, using elements like live edge coffee and dining tables made from local materials.

Outdoor Spaces

• Transform outdoor spaces: If available, create an outdoor relaxation zone with comfortable furniture, lighting, and unique features like BBQ grills, fire pits, or hot tubs. These amenities can significantly increase revenue.

Personalized Welcome

• Welcome guests personally: Use a unique welcome sign or gift, such as a bottle of wine from a local vineyard or a locally made treat. Small gestures like a chalkboard welcome can make a big difference.

Workspace and Additional Amenities

• Include a workspace: Provide a dedicated area for remote workers, as this has become a popular amenity in vacation rentals.
• Add entertainment options: Incorporate board games, pool tables, dartboards, or shuffleboards to create spaces that bring people together and offer something unique.

Attention to Details

• Pay attention to lighting and window treatments: Use blackout curtains and thoughtful lighting to create a cozy and inviting atmosphere. Ensure the space feels polished with details like area rugs and decorative accessories.
• Use current interior design trends: Decorate with styles like modern farmhouse, midcentury modern, or industrial chic to keep the space stylish and appealing.

By following these tips, you can create an Airbnb in Nashville that not only reflects the city's unique style but also provides a comfortable and inviting space for your guests.

Discovering Nashville: Local Attractions and Insider Tips for Your Guests

Music and Entertainment

• Ryman Auditorium: Take a self-guided tour or catch a live performance at this historic venue, once home to the Grand Ole Opry.
• Lower Broadway Honky-Tonks: Explore iconic bars like Robert’s Western World and Tootsie’s Orchid Lounge, and newer spots like Acme Feed and Seed and Miranda Lambert’s Casa Rosa.
• The Listening Room: A great place to see songwriters perform in an intimate setting.
• Live Music Venues: Many venues offer free live music; guide your guests to the best spots along Honky Tonk Highway.

Museums and Historical Sites

• Country Music Hall of Fame & Museum: A must-visit for country music fans, with thousands of artifacts and interactive exhibits.
• National Museum of African American Music: Explore the evolution and impact of Black music in America through interactive exhibits and memorabilia.
• The Hermitage: Visit Andrew Jackson’s stately mansion, gardens, and the Jackson family tomb.
• Johnny Cash Museum: A comprehensive look at the life and legacy of Johnny Cash.

Art and Culture

• Marathon Village: A former automobile plant turned shopping center with art studios, galleries, and unique shops like Antique Archaeology from American Pickers.
• Street Art: Guide your guests to find murals like the “WhatLiftsYou Wings” mural in The Gulch and the “I Believe in Nashville” murals in 12 South and Marathon Village.
• Cheekwood Estate & Gardens: A historic mansion with beautiful gardens and rotating art exhibits.

Outdoor Activities

• Radnor Lake State Park: Enjoy hiking trails, wildlife viewing, and the Barbara J. Mapp Aviary Education Center.
• The Parthenon: A full-scale replica of the Athens Parthenon, located in Centennial Park with a fine art museum on the lower level.
• Nashville Zoo: Home to interactive exhibits, a historic plantation house, and various animal encounters.

Neighborhoods to Explore

• Germantown: Known for its excellent restaurants, historical attractions, art galleries, and live music venues.
• The Gulch: A trendy neighborhood with street art, restaurants, and the famous “WhatLiftsYou Wings” mural.

Day Trips

• Franklin: Visit historical homes like Carter House, Lotz House, and Carnton, and enjoy the Masters & Makers Trail for local brews.
• Kingston Springs: Experience the Aerial Adventure Course at Adventureworks, canoe or kayak on the Harpeth River, and explore the Mound Bottom State Archaeological Area.
• Lynchburg: Tour the Jack Daniel’s Distillery, visit the Moore County Jail Museum, and enjoy family-style dining at Miss Mary Bobo’s.

Insider Tips

• Food: Try Nashville's famous hot chicken, visit the Nashville Farmers Market, or enjoy a meal at Red Pony in Franklin.
• Sports: Catch a game by the Nashville Predators, Tennessee Titans, Nashville Sounds, or Nashville SC.
• Guided Tours: Recommend guided tours to help guests explore all Nashville has to offer, from music venues to historical sites.
• Advance Tickets: Suggest purchasing tickets to popular attractions in advance to avoid waiting in line.

Practical Tips to Run a Successful Short Term Rental Business in Nashville, Tennessee

To ensure a smooth and successful short-term rental business in Nashville, Tennessee, several practical tips can be implemented:

Noise Regulations and Guest Communication

Inform your guests about quiet hours and noise regulations to avoid complaints and potential penalties. Include a section in your house manual or welcome message that clearly outlines the quiet hours and the importance of respecting the neighborhood.

Comprehensive House Manual

Create both digital and physical house manuals that include detailed instructions on how to use appliances, Wi-Fi passwords, and other essential information about the property. This helps reduce the number of guest inquiries and ensures a more comfortable stay.

Simplified Check-in Process

Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide guests with clear instructions on how to use the smart locks and ensure that the access codes are easily accessible.

Parking Instructions

Include detailed parking instructions with photos in your house manual or welcome packet. This helps guests understand where they can park and how to navigate any parking restrictions, reducing the risk of parking-related issues.

By following these tips, you can enhance the guest experience, reduce potential conflicts, and ensure compliance with Nashville's short-term rental regulations, ultimately leading to a more successful and stress-free hosting experience.

Here is a brief list of house cleaning providers in Nashville, Tennessee:

House Cleaning Services in Nashville

Maid Cleaning Nashville

• Offers deep cleaning, eco-friendly cleaning services, and flat-rate pricing.
• Uses HEPA filtration vacuums and eco-friendly products certified by the Green Seal Organization.
• Fully insured and bonded, with a 100% happiness guarantee.

Imagine Maids

• Provides high-quality cleaning services for homes and businesses.
• Background-checked and reference-checked cleaners.
• Offers deep cleaning, end-of-lease cleaning, and regular cleaning services.
• Serves Nashville and the surrounding areas.

The Cleaning Authority

• Uses a Detail-Clean Rotation System for thorough and sanitized cleaning.
• Fully bonded and insured, with a satisfaction guarantee.
• Implements eco-friendly methods and products.
• Serves Nashville, Franklin, Bellevue, Forest Hills, and surrounding areas.

Two Maids

• Offers professional house cleaning services with thoroughly trained, background-checked, and fully bonded and insured cleaners.
• Provides all necessary cleaning supplies and equipment.
• Customizable services and a proven history of reliable cleaning.

Nashville, Tennessee: Understanding Short-Term Rental Management Fees

In Nashville, Tennessee, short-term rental management fees can vary significantly, typically ranging from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management, which includes comprehensive tasks such as guest communication, marketing, and maintenance, tends to be on the higher end of this spectrum, often ranging between 20% to 30% of the monthly income.

For property owners who require only basic services, such as listing optimization and guest screening, the fees can be lower, usually around 10% to 18% of the rental revenue. Additionally, property owners may incur extra fees for services like cleaning, repairs, and design consultations, which can be charged separately or included in the overall management fee package. Understanding these fee structures is crucial for property owners to make informed decisions and maximize their returns in the vibrant short-term rental market of Nashville.