By Ashley Irwin
You’ve probably heard about the short rental app Airbnb that allows tourists short-stays in local homes and apartments during their stay in Nashville or almost any other city. Airbnb often offers lower prices than hotels, and each property is owned by an individual and rented out to guests. The owner of the Airbnb rental sets the rental price on their home or apartment, allowing them to bring in as much money for their rental as they can. While Airbnb is not yet legal in Williamson County, that has not stopped real estate investors from cashing in on Nashville’s growing short rental market.
Nashville has been one of Airbnb’s fastest growing cities for the last few years and it continues to grow as more and more condos and apartments are being built in Music City. Susan Gregory, a realtor in the Williamson County and Nashville areas, has noticed the popularity of these short-term rental properties and the effects they have on real estate investors. Gregory says, “Some investors have decided to leave Williamson County and focus solely on the Nashville area.” Gregory also explains that investors are even buying entire homes to use as short-term rentals. According to Nestive, 72.9% of Nashville’s Airbnb rentals have been entire homes or apartments.
Real estate investors have good reason to be switching their tactics to the Nashville area. Since April of 2015, over 2,000 short-term rental permits were given out in Nashville. This number is sure to grow as residents see the construction of dozens of new apartment complexes and condos being built throughout Nashville. Investors may make more by renting out apartments and condos on Airbnb since the price of renting an apartment for a short stay will bring in more cash than renting out full leases at an affordable rate.
A closer look at the data on short-term rental agreements show that the majority of these agreements belong to non-owners. The trend of buying real estate to rent out to sites like Airbnb is growing substantially as the trend proves lucrative. Right now is the perfect time for Williamson County real estate investors to come in and try to dominate the Nashville market as business in the city skyrockets. The city’s growth, in turn, brings in more tourists and travelers, therefore bringing in more short-term renters to put more money in the pockets of investors.
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