Would you buy a hotel room?
A decade-plus ago, that might’ve seemed like an odd question, but today — with the mass embrace of Airbnb and VRBO and others, by renters and owners alike, it’s not odd at all, really.
As Nashville Realtors, we work with a lot of families, couples and singles looking to buy a home in Nashville, more often for living in more than investing. But enough of the time, those buyers are also considering renting out part of their home, or buying a second (or third, or fourth) property to use for short-term rental income. It’s not owning a hotel room, exactly, but it’s not that far off.
And there are certainly benefits to being a short-term rental “investor,” whether you’re renting out your mother-in-law suite or listing your whole place. Data from last year showed Nashville with a particularly high Airbnb occupancy rate of 61 percent, and an average revenue of $30,013.
So does that make Nashville a good place to own a short-term rental?
As with all things real estate, it depends. But the general data trend has certainly been promising.
In 2017, Rented.com — a company that works with rental property owners to maximize profits — listed Nashville at No. 1 in its annual Rental Income Report, running down “The 150 Best Places To Buy A Vacation Rental Property.” They rank ideal Airbnb/etc. markets according to local real estate prices, rental rates, popularity as a tourist destination and more, with the aim of landing on a total return-on-investment figure.
In Rented’s 2018 report, Nashville still ranked near the top of that 150 best, at No. 6, with an estimated rental income of $30,620. And Rented.com noted that 15 of the 25 “Best Places to Buy” were located here in the Southeast.
The company’s 2019 report was still big-time bullish on Tennessee, with Pigeon Forge and Gatlinburg at No. 1 and 2. Nashville had moved down to No. 14, but here’s the buried highlight: Rented’s estimated rental income for 2019 in Nashville was $91,500.
Why is buying a hotel room on our minds?
The popularity of Nashville for short-term rental owners is certainly nothing new. But lately, in our property-showing rounds, we’ve been seeing more and more Downtown and near-Downtown condo and apartment options that seem tailor-made for the Nashville investor in search of a perfect first short-term rental property.
Among the latest to catch our attention: The 1865, a historic tobacco barn in Downtown Nashville that’s being recast as a luxury condominium community.
Units at the 1865 range from 1 to 3 bedrooms, and start in the $300Ks, and the location right off Charlotte Avenue is prime for visitors and urban-living-minded locals, too — blocks to live music and dining and shopping and the rest.
The real draw here, though: The way the developers are blending history and luxury. Lots of original, circa-1800s details are sticking around, including exposed original brick and wood ceilings with big, warm beams. The new finishes are matching those original details with high-end additions – if we were choosing between their three finish packages, we really like “Ivory,” and the way the pops of brass and white stone contrast with the rustic old wood and brick.
You can learn more about The 1865 at the1865tn.com — and if the idea of buying a downtown Nashville investment property appeals to you, let’s talk more. We have a bunch of ideas and possibilities in our pockets, and we’d love to help an investor find pieces of Nashville that’ll really inspire them.
Listings via MLS, not under agreement with ACRE and/or Benchmark Realty, LLC.