Real estate investing seems to be a trending topic here in Middle Tennessee. Many are interested in how to own a short-term rental property. As a Nashville Airbnb owner, Holloway Home Group team leader Erin Holloway is very familiar with this type of real estate investment!
She recently shared her insights regarding owning a Nashville Airbnb on social media. We’ve compiled a list of our audience’s key questions and Erin’s helpful answers below! (Check out her Nashville Airbnb here for a fun visual as you read through her answers.)
Q: Does an Airbnb make more money than a long-term investment property, month to month?
A: Yes, Erin brought in $1,000 more per month than if she had rented her house to a long-term renter. However, she did have more expenses, like utilities, cleaning fees, and general house supplies. Erin can complete a cash flow analysis for potential investors interested in reviewing their finances.
Q: Does your Airbnb also have to be your primary residence?
A: In Davidson Country, if the house is zoned as a single-family home, it must be owner-occupied for the owner to obtain a short-term rental permit. If the property is not owner-occupied, it must reside within a commercial or multi-family zone. Something to note further is that Homeowners Associations may not allow short-term rentals. Those guidelines may differ in other counties in Middle Tennessee. Holloway Home Group can research those guidelines for anyone interested in owning a short-term rental in the Middle Tennessee area.
Q: What is one positive and one negative of owning an Airbnb that you did not expect?
A: As a positive, Erin shared that she did not expect to gain financial freedom through having an Airbnb. She doesn’t have living expenses because everything comes through her Airbnb, including her mortgage payments.
One of Erin’s unexpected and challenging experiences has been keeping her neighbors happy. Since she and her neighbors share a driveway, she has to ensure her guests are parking correctly.
Q: Due to having a higher turnover of tenants do you have more issues with theft or damage?
A: Erin hasn’t experienced much damage in her Airbnb. She does allow pets, so she has had an issue with a pet-related stain in the past. But Erin feels the lack of theft or property damage is because guests are staying in a house rather than a hotel. And ultimately, she believes it’s all about how you treat your guests.
Q: What should a first time investor be most cognizant of before purchasing an Airbnb
A: Erin strongly encourages potential Airbnb investors to know their numbers before going into the investment. Holloway Home Group can complete a cash-flow analysis for clients interested in short-term rentals, long-term rentals, or property flipping projects. Erin also suggests keeping up with the market and contacting a real estate agent for their market insights. Additionally, potential investors should research lenders to learn about the different types of loans available.
Erin and the Holloway Home Group are passionate about helping clients reach their real estate goals. Our team has a wealth of resources and business partners to assist our clients with their investment properties.
Holloway Home Group team members are also very familiar with the communities within Middle Tennessee. Our team is constantly scouting the individual markets and learning what they offer. Check out our blog page to learn about markets like Nolensville, Murfreesboro, Lebanon, East Nashville, and more.
If owning an Airbnb or rental property is something you are interested in, we would love the opportunity to serve you. Holloway Home Group is ready to assist with all things real estate in Middle Tennessee. Feel free to contact us and allow us to serve you and your real estate goals—info@teamhhg.com.