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Airbnb Pricing Strategy during Nashville Events

Airbnb Pricing Strategy during Nashville Events: Troubled with Airbnb pricing strategy when demand is high in Nashville? Then granular Airbnb data analytics will guide you!

airbnb pricing strategy

Troubled with Airbnb pricing strategy when demand is high in Nashville? Then granular Airbnb data analytics will guide you!

As an Airbnb host in Nashville, you want to maximize your revenue during peak season while also staying competitive. After all, Nashville is known for its music festivals and other events that draw crowds from all over the world. One way to achieve this is by analyzing Airbnb historical prices

In this blog, we’ll discuss the benefits of using Airbnb historical data and how it can help you make smarter pricing decisions during exciting Nashville events.

How much does the average Airbnb make in Nashville?

According to Airbtics, the average annual revenue of a 1-bedroom with 78% occupancy is $46,424. Hosts in Nashville can charge an average nightly rate of $159 for this property size. The booking lead time for all 7,692 active Airbnb listings in Nashville is 75 days. So you can be assured that your Airbnb unit is booked at least 2 months in advance!

If you’re planning to be an Airbnb host in the city with very minimal investment, you should consider rental arbitrage in Nashville. This way you can see if Airbnb is the way for you to earn passive income without spending hundreds of thousands of dollars!

Airbnb Pricing Strategy During High Demand in Nashville 

During peak season, it’s important to stay competitive with other Airbnb hosts in Nashville. Historical data can help you analyze how your prices compare to those of your competitors, allowing you to adjust your pricing strategy to stay competitive and attract more bookings. In this section, we will see how much Airbnb hosts earned during the peak season in Nashville in 2022. This will give hosts an idea of how much they can cash in this year.

With its newest cutting-edge feature, Airbtics offers a tool that allows you to dive deeper into daily, weekly, and monthly data – enabling you for an accessible and comprehensive granular analysis. 

Aided by the ever-reliable Custom Market feature, we can check the average nightly rate and other important data from various Nashville Airbnb markets that cater to tourists during happy affairs in the city.

1. CMA Fest
  • Attendees: 80,000
  • Airbnb Market: Downtown Area
  • When: June 9 – 12
    • Booking Lead Time: 122 days
    • Occupancy Rate: 60%
    • Average Nightly Rate: $551
2. Tomato Art Fest
  • Attendees: 20,000
  • Airbnb Market: East Nashville
  • When: August 13
    • Booking Lead Time: 81 days
    • Occupancy Rate: 33.7%
    • Average Nightly Rate: $258
3. Americanafest
  • Attendees: 23,000
  • Airbnb Market: Downtown Area
  • When: September 13 – 17
    • Booking Lead Time: 93 days
    • Occupancy Rate: 51%
    • Average Nightly Rate: $522
4. Nashville Film Festival
  • Attendees: 43,000
  • Airbnb Market: South Nashville
  • When: September 29 – October 5
    • Booking Lead Time: 83 days
    • Occupancy Rate: 38%
    • Average Nightly Rate: $219
5. Nashville Big Bash
  • Attendees: 200,000
  • Airbnb Market: Germantown
  • When: December 31
    • Booking Lead Time: 44 days
    • Occupancy Rate: 23.3%
    • Average Nightly Rate: $416

Conclusion

We get it, it’s tempting to significantly raise your nightly rate during peak periods in Nashville. Sadly, there’s a trade-off.  Overpricing your listing could result in missed booking opportunities, while underpricing could mean lost profits during high-demand periods. It’s crucial to strike a balance that is fair to both you and your guests. 

By conducting research and analyzing market demand in detail using granular data, you can price your Airbnb listing competitively to attract guests while also ensuring a reasonable profit margin. You can also explore other top Airbnb cities in the US to compare their profitability. This way, you won’t miss out on better opportunities.

Check if you’re pricing your STR unit right from this accurate and accessible Airbnb Income Calculator!

Bird’s-Eye View then Dive into the Granular Data of Nashville Airbnb Market!

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Short-Term Rental Data
Find unsaturated neighborhoods with the highest occupancy history.

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Find unsaturated neighborhoods with the highest occupancy history.

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Airbnb Investment All About Airbnb

Buying An Airbnb in Nashville: Which Neighborhoods Are Profitable

Buying An Airbnb in Nashville: Read this data-backed article before buying an Airbnb in Nashville, so you can target a profitable neighborhood!

property investment in Nashville

Read this data-backed article before buying an Airbnb in Nashville, so you can target a profitable neighborhood!

Key Takeaways

  • Backed by accurate data, Airbnb hosts can be guided when buying an Airbnb in Nashville. Learn about the earning potential of property investments in its neighborhoods and the property size gives the best gross rental yield!

Introduction

Nashville is part of the “Bible Belt” stretched in the Southern Region of the United States. But in contrast to this, did you know that the city offers a unique high-spirited nightlife on a four-block-long Honky Tonk Highway?  

Singing gospel songs on Sundays and then enjoying Bluegrass, Rock, Blues, and Indie Rock for the rest of the week is the rhythm of Music City. It’s just one of the main tourist attractions,  and this diversity only gives a Nashville Airbnb investment a distinct character.

Looking for a guide to buying an Airbnb in Nashville? Continue reading this article as we show you valuable neighborhoods that you can target in Nashville by using Airbtics!

buying an airbnb in Nashville

Is Nashville A Good Place To Own An Airbnb?

Certainly! A vacation rental host can earn an average of $41,976 for operating a 2-bedroom unit in Music City! According to Airbtics, the city has a total of 3,284 active short-term rental listings while Nashville’s Airbnb occupancy rate is 48%.

Aside from these, here are a few factors that make Nashville ideal for short-term rental property investment:

  • A Vibrant Economy

Nashville is not only known as a culturally diverse city. It also houses various industries that make it an interesting palace for investment. This includes utilities, healthcare, education, government, and music production. In fact, Nashville has an unemployment rate of 2.7%, which is one of the lowest in the United States.

  • Lack of Hotel Accommodation

There are less than 20 thousand hotel rooms in Nashville. There needs to be more than this accommodation for the 14.4 million visitors who come to Music City annually. Hosts can take advantage of this situation since short-term rental is the only viable and immediate answer.

buying an airbnb in Nashville

Checking the Profitability of Neighborhoods When Buying An Airbnb in Nashville

Let rental analytics lead you to a profitable Airbnb investment property in Nashville! Luckily for you, Airbtics’ Insights Tool is so easy to use. Simply type in “Nashville” or any other city of your choice.

buying an airbnb in Nashville

As you zoom in or drag the map, the data on the Airbtics Dashboard is also updated! You cannot find anything like this anywhere else!

Using this research method, you can find that the following neighborhoods are best for Airbnb investment in Nashville. Optimize your earnings by going for the best number of bedrooms!

airbtics-logo-300x87
Neighborhood Number of Airbnb Listings Best Number of Bedrooms Median Property Price Airbnb Annual Revenue GRY
Music Row 137 1 Bedroom $329,900 $27,747 8.41%
Downtown 417 2 Bedrooms $999,999 $83,585 8.36%
East Nashville 362 3 Bedrooms $624,950 $59,459 9.51%
12 South-Melrose-Belmont 128 2 Bedrooms $775,000 $67,109 8.66%
Rutledge Hill 242 2 Bedrooms $890,000 $96,601 10.85%

Airbnb Neighborhood

Airbnb Dataset

  • Total Number of Airbnb Listings: 137
  • Most Profitable Number of Bedrooms: 1 Bedroom
  • Median Property Price: $329,900
  • Airbnb Annual Revenue Potential: $27,747
  • Gross Rental Yield: 8.41%
  • Total Number of Airbnb Listings: 417
  • Most Profitable Number of Bedrooms: 2 Bedrooms
  • Median Property Price: $999,999
  • Airbnb Annual Revenue Potential: $83,585
  • Gross Rental Yield: 8.36%
  • Total Number of Airbnb Listings: 362
  • Most Profitable Number of Bedrooms: 3 Bedrooms
  • Median Property Price: $624,950
  • Airbnb Annual Revenue Potential: $59,459
  • Gross Rental Yield: 9.51%
  • Total Number of Airbnb Listings: 128
  • Most Profitable Number of Bedrooms: 2 Bedrooms
  • Median Property Price: $775,000
  • Airbnb Annual Revenue Potential: $67,109
  • Gross Rental Yield: 8.66%
  • Total Number of Airbnb Listings: 242
  • Most Profitable Number of Bedrooms: 2 Bedrooms
  • Median Property Price: $890,000
  • Airbnb Annual Revenue Potential: $96,601
  • Gross Rental Yield: 10.85%

Source: Airbtics Dashboard

Maximize the Insights tool by creating your own Custom Market. You can opt to follow geographical boundaries or not, but this tool allows you to save your market for easy monitoring!

best area for airbnb in washington dc

Rental Analytics in Buying An Airbnb in Nashville

By leveraging the power of data analytics, you can identify neighborhoods like Music Row, Downtown, East Nashville, 12 South-Melrose-Belmont, and Rutledge Hill, which offer attractive opportunities for Airbnb hosting. Each of these areas presents different potential in terms of annual revenue and gross rental yield, based on the number of bedrooms in the property.

If you are considering investing in an Airbnb property in Nashville, data analytics can be your guiding light to maximize your earnings and make an informed decision. With the help of Airbtics’ Insights Tool, you can explore other valuable neighborhoods in Music City that offer promising returns on your investment.

Wanna know how short-term rental data analytics can guide you? Try our Airbnb Calculator and see the earning potential of your property investment!

Unlock Worldwide
Short-Term Rental Data
Find unsaturated neighborhoods with the highest occupancy history.

Unlock Worldwide
Short-Term Rental Data
Find unsaturated neighborhoods with the highest occupancy history.

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Airbnb Rental Arbitrage All About Airbnb

Rental Arbitrage Nashville


Table of Contents
    Add a header to begin generating the table of contents

    What is Rental Arbitrage?

    Rental Arbitrage is a method similar to house hacking. But unlike house hacking in Rental Arbitrage, you don’t own the house. Instead, you convince a landlord to lease you a property which you then furnish and sublease on Airbnb and VRBO.

    Rental Arbitrage is a really good method to do in a multifamily house, duplexes, or triplexes. You can easily use the money from your short-term rental to pay off your lease and also profit some more. If done right this can be a full-fledged business in itself. If you own a duplex or triplex then it is pretty straightforward. You can live in one section and rent out the other. This is known as house hacking. People use this after taking a loan on a property and use the rent to pay off the mortgage. The short-term rent helps you pay for the long-term lease that you have on the house. This helps you keep the difference at the month-end after paying for the long-term lease. Let’s take an example to help you understand Rental Arbitrage better.

    Assume you are renting a duplex in Nashville for $1,800/month. You are living by yourself on one of the sides and you decide to sublease the other on Airbnb. Let’s say you listed it for $100/day and got 80% occupancy. This will bring in approx $2,600/month in revenue. Not only will it help you pay off your complete rent, but give you a profit of $800. This, in a nutshell, is called Rental Arbitrage.

    Learn more about Airbnb Rental Arbitrage through this guide!

    Things to do before getting started?

    How to convince the landlord

    Let’s say you want to get into Rental Arbitrage. Now comes the big question, how to find a good property and how to convince the landlord. Later in the blog, we’ll be explaining how to find a good property by doing proper research using short-term rental analytics. In this section, we will be focusing more on how to convince landlords. As you’ll begin your Rental Arbitrage journey, you’ll come to know that this is the hardest part of the whole process.

    You need to be prepared and well researched, good communication skills come in handy here. Also, one thing to always keep in mind: never sublease without informing the landlord, there will be a huge number of people coming in and going out when you’re sub renting, it will not be hard for the landlord to figure out that you are subletting and you might end up getting in trouble.

    For the convincing, rule number one is always talking about the upsides. If you can rent the property on Airbnb, so can the landlord himself. You need to make a deal with the landlord that is beneficial to them. So they lease the property to you instead of renting it by themselves. You can advise the Landlord about Texas general insurance for landlords to protect themselves. In this way, you will also gain his trust and make sure he knows you are also looking out for him.     

    Points to tell an indecisive landlord.
    • Doing Rental Arbitrage is a full-time business. It doesn’t generate passive income like long-term leasing. You should try approaching older people who are looking for some sort of passive income. They are more likely to agree to a fixed long-term lease. You can also reach out to full-time working professionals or business owners. They will also be happy with a source of passive income till their property is well maintained. This brings us to our next point.
    • You are more likely to take care of the house than a normal renter. As you are using the property to do business you will take good care of it to make sure you get better reviews. Having a beat-up property isn’t good for business and you are more likely to monitor it often. Not monitoring it will affect your revenue a lot. You may end up paying a huge sum of money for damages done by someone else. So telling this to the landlord might instill some confidence in them.
    • You can ensure timely monthly rent. You can tell the landlord that doing Rental Arbitrage is a full-time business with ups and downs. It doesn’t guarantee fixed income at all like long-term leasing. But if they lease it to you, you’ll make sure to pay the lease no matter what. Either from the money made after rental arbitrage or from your savings. You need to ensure timely monthly lease payments to gain the trust of a landlord.

    In conclusion, you need to take care of the property like your own. Make sure to timely pay the monthly lease and keep the situation beneficial for both parties.

    Ensure the Property and Gain landlords’ trust

    Being on the safe side is always a good idea. From trouble guests to bothering landlords. You need to make sure you are using the right tools to ensure the property is safe and neighbors are happy. Many landlords will have this concern when renting out their property to you. They will be worried about neighbors raising noise complaints. It is a legitimate concern. To help you with all these problems, here are some suggestions that you can implement and have peace of mind.

    • Simply Safe – These are home monitoring tools that you can install in the house to make sure no suspicious activity is happening there. Make sure to let the guests know about them and have their consent.
    • Auto host – Automatically screens problematic tenants.
    • Alexa Guard: If you already own an Alexa, you can use its Alexa guard feature to detect parties. It is an inbuilt feature that monitors changes in sound and sends you an alert in case the guests are having a party and making too much noise.
    • InsuraGuest – This insurance and tech company helps you with risk analysis and gives protection beyond Airbnb and VRBO policies.
    • Airbnb ROI Calculator – Give your landlord ease of mind by providing income estimates backed by Airbnb data.

    You can integrate the majority of these tools with a PMS of your choice.

    Airbnb data

    Pro’s and Con’s

    rental arbitrage pros and cons

    The initial cost of starting Rental Arbitrage Nashville?

    You can expect to spend anywhere between $3,000 to $5,000. This cost consists of everything including deposit, furnishing, amenities, legal paperwork, and LLC Incorporation.

    But doesn’t this contradict the low upfront cost of Rental Arbitrage? Well, these estimates vary from city to city. There is a possibility to do Rental Arbitrage for even less than this depending upon your situation and the type of property you lease.

    Still, the amount is much less than investing in a new property and getting a mortgage of thousands of dollars. Plus you won’t be on the hook for property maintenance expenses and being stuck for years with debt.

    But this doesn’t mean Rental Arbitrage can be done with no or very tight budget. There will be some upfront costs that you would have to bear. Having some extra cash is also a good thing to have. It will help pay off the lease in not-so-profitable months in case bookings don’t happen right away.

    Expense 1: Rental Deposits

    A Rental Deposit is going to be one of the first and major expenses. You would need money to be able to sign a long-term lease with the landlord. For that, you will need a Security deposit, First and Last month’s rent. Sometimes you can negotiate with the landlord and use the first month’s rent as a security deposit.

    Expense 2: Furnishing

    Most of the time you should always aim to lease a semi-furnished place. As someone with a fully furnished home might be doing short-term rentals themselves. Also furnishing a place from scratch can add anywhere from $3,000 to $5,000 to your initial capital. Not choosing the right property can make Rental Arbitrage not so low cost, so choose wisely.

    If the place is semi-furnished, then your best bet is to shop cheap for the rest of the stuff. You can go and find cheap supplies from places like Home Depot and IKEA. Sometimes even Walmart can have a hidden gem if you look closely.

    Expense 3: Photography

    Do it yourself!!! iPhones have good cameras. Will save you some money.

    Expense 4: Cleaning Services

    This is not a starting cost, but you will end up spending on cleaning eventually. The best way to save money is to do it yourself initially if you have the skills and experience.

    If you have no experience or you don’t want to invest time in cleaning a place. Then your best bet will be to hire a professional cleaner. This can cost you anywhere from $50 to $250 depending upon the size and location.

    Maintaining a professional relationship with a Real Estate lawyer can be very helpful in the Airbnb business. Airbnb regulations keep updating and you would need some legal guidance on the way to adjust your business accordingly.

    They can also come in handy if you face any legal issues with the landlord or guests. They can help in damage claims and insurance as well in case of any mishappening.

    Legality and Regulations in Nashville

    In Nashville, there are now two categories of short-term rental permits:

    1. Owner Occupied (the owner of the property stays on-site throughout the guest’s stay)
    2. Non-Owner Occupation (property owner does not live in the home and guest has access to the entire space)
    Owner-Occupied Permits

    An owner-occupied permit has fewer limitations, owing to the lack of zoning rules.

    • Two documents establishing the owner’s principal home on the property. A Tennessee driver’s license, state ID card, IRS W2 form, or bank statement will all suffice.
      The document’s address must match the address on file with the Davidson County clerk’s office.
    • The property’s owner must live on-site and be a natural person (rather than a business entity such as an LLC). In other words, you apply for permission in your own name as an individual.  Single-family and two-family zones may only issue one permit per lot. If there are two houses on the property, the same owner must own both and live in one of them as a primary house. If you live on a property zoned Specific Plan (SP) or Planned Unit Development (PUD), you may need to take extra measures before obtaining a permit. 
    Non-Owner Occupied Permits
    • Due to the limited zones where rentals are allowed, short-term rental permits for non-owner-occupied properties are more difficult to get. 
    • The address on the application must be the same as the one on file with the Davidson County clerk’s office.  
    • You can renew your permit once a year, but you cannot renew it if you sell your property or transfer ownership. AR2A, R, and RS zones will not grant new permits.
    Sales Tax and Business Registration

    Property owners in Metro Nashville and the State of Tennessee are required to get a business license and collect various state and local taxes.  

    Hotel and motel tax

    According to the Short Term Rental Properties Ordinance, Nashville charges a hotel/motel tax. Likewise, Tennessee collects sales tax.

    Reference| tnvirtuallaw

    Best areas for Rental Arbitrage Nashville

    Some obvious places come to mind when thinking of Nashville like Downtown, the Gulch and East Nashville. But two of the best choices for rental arbitrage top our list. The first one is:

    1. 12 South

    rental arbitrage nashville 12 south

    According to our Airbtics Dashboard, 12 South is the top market to start your Rental Arbitrage business. There are more than 1,173 Airbnb listings with 80 private rooms properties and 289 one-bedroom properties. Monthly revenue for most properties is more than $5,128/month with occupancy being more than 48%.

    2. Music Row

    rental arbitrage nashville music role

    According to our Airbtics Dashboard, Music Row is the second-best market to start your Rental Arbitrage business. There are more than 3,296 Airbnb listings with 244 private rooms properties and 1162 one-bedroom properties. Monthly revenue for most properties is more than $4,565/month with occupancy being more than 48%.

    To see full data of Nashville – Click Here

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