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5 Things You Didn’t Know About Renting Property in Nashville

Lee Blackburn

Nashville is becoming a popular rental market for property investors who are looking to begin buying properties or to strengthen a growing portfolio. You might have some general ideas about market performance; any smart investor is going to spend some time looking at projected rents and studying the likely return on their investment. But, if you’re thinking about renting out a home in Nashville, there are a few things that you might not know. 

You might have some general ideas about market performance; any smart investor is going to spend some time looking at projected rents and studying the likely return on their investment. But, if you’re thinking about renting out a home, there are a few things that you might not know. Property readiness, for instance, can catch new investors off guard—especially when dealing with homes that need functional updates before hitting the market. In these cases, working with a residential build contractor becomes part of the early process; https://www.rspg-ca.com is one example often used as a reference when planning timelines or estimating scope. These aren’t major renovations—just the essential adjustments that make a rental livable and compliant without overspending.

We’re here to fill in those gaps. 

As local Nashville property management experts, we can help you have a successful experience, whether you’re renting out a home you once lived in yourself or a property you’ve decided to buy in order to earn some short-term rental income and long-term returns. 

Here are 5 things you might not know about renting out property in Nashville. 

1. The Rental Market is Steadily Growing

It looks like a stable market to just about anyone who takes a look, but this particular area is more than stable. It’s growing, and it’s growing in meaningful ways. 

Nashville’s population has been on the rise, with more people moving to the city for work, school, and, of course, the live music scene. This influx of new residents has led to an increased demand for rental properties. You can expect a steady pool of well-qualified tenants for your rental home in Nashville. While marketing will always be important, and you’ll have to make improvements and upgrades in order to keep your property competitive on the market, you’ll rarely have to worry about long vacancies. Nashville is flush with tenants looking for homes. 

The rise in rental prices is a notable result of this growth. Rents have escalated significantly, particularly in popular neighborhoods such as East Nashville and The Gulch. Additionally, the influx of new residents—many attracted by the growing job market in the tech and healthcare sectors—has resulted in a competitive rental landscape, driving landlords to consider offering amenities and flexible lease terms to attract tenants. There’s a lot of diversity in the market, too, from single-family homes to upscale apartments. Understanding these trends is essential for both prospective renters and investors looking to navigate Nashville’s evolving housing market effectively.

2. Short-term Rentals Face Stricter Regulations

Maybe your investment goals are focused on short-term rentals. If that’s the case, you need to know about the regulations and the laws that are waiting for you here. 

While short-term rentals can be a profitable venture in many cities, Nashville has implemented stricter regulations on these types of properties. In order to rent out a property as a short-term rental, owners must obtain a permit before listing their property for rent. There are two types of short term rental property permits in Nashville: owner-occupied and non-owner occupied. New non-owner occupied STRP permits (typically investor-owned properties) are only permitted in certain non-residentially zoned areas. If you’re going to rent out a short-term property as an owner-occupied unit, you’ll have to demonstrate that you live in the property at least 270 days a year. 

This means that while short-term rentals can still be lucrative, they come with increased oversight and potential costs. Investors considering this route should stay up to date on current regulations and anticipate the need for professional management and potentially good legal counsel.

3. Location Matters More Than Ever

Location has always been an important part of investing in real estate. That’s something you likely DO know. What you might not know, however, is the nuance that can be found in each Nashville neighborhood that you might be considering. 

Like many cities, Nashville has neighborhoods that are more desirable than others. Areas like East Nashville and The Gulch have seen a surge in popularity and corresponding rental prices. However, up-and-coming neighborhoods may offer more affordable options with the potential for substantial appreciation over time. Understanding the dynamics of Nashville’s neighborhoods and keeping an eye on shifts in popularity can help you make informed investment decisions. Spend some time exploring these neighborhoods, especially if you’re not a local investor who already has a sense of how each area feels. 

4. Competition is Heating Up

It may not quite be San Francisco or New York, but you may be surprised at how competitive this market is for both landlords and renters. Everyone wants to rent the best homes, and tenants are faced with reduced inventory as rental demand rises. But investors have to be prepared to act quickly, too. 

With Nashville’s growing popularity, competition among property investors is intensifying. Many investors are targeting the same neighborhoods, leading to bidding wars and inflated prices. To stand out in the crowded market, you need to conduct thorough research, clearly communicate your investment strategy, and be prepared to act quickly when opportunities arise. You can help yourself by ensuring your financing is in order and that you’re prepared to negotiate on price and terms. Close the deal quickly on something you really want. Waiting is a bad idea. 

5. Property Management Can Make or Break Your Investment

Nashville property management can be a secret weapon. 

That’s because managing a rental property can be time-consuming, especially if you’re not based in Nashville. Hiring a reputable and experienced property management company in Nashville can help streamline the process, from finding and screening tenants to handling maintenance requests and ensuring compliance with local regulations. With the right property manager, you can enjoy a steady stream of rental income while minimizing the stress and hassle of being a landlord.

We can even help you choose the right investment property. Why wait until you’ve already closed the deal to partner with a management company? With our expertise and market knowledge, you’ll have a better idea about what kind of rents you can expect to earn on a particular investment and what sorts of repairs might be necessary in order to prepare it for the Nashville rental market. 

This city offers an abundance of opportunities for property investors, but it’s essential to understand the unique aspects of the rental market before making an investment. Let’s talk more about your unique investment goals and how we can help you achieve them. Please contact us at Omni Realtors and Property Management.