Short-Term vs. Long-Term Rentals: Which Investment Is Right for You?

Investing in rental properties can be a fantastic way to build wealth, especially in the thriving Middle Tennessee market. But should you focus on short-term rentals (STRs) or long-term rentals (LTRs)? Both options come with unique benefits and challenges. Let’s break it down into three essential considerations:

---

Income Potential and Management Needs 

Short-term rentals, such as vacation homes or Airbnb properties, often generate higher monthly income, especially in popular areas like Nashville. Tourists and business travelers frequently seek out accommodations near downtown or major attractions. However, STRs require hands-on management. Frequent guest turnovers mean regular cleaning, maintenance, and communication, which can become time-intensive.

Long-term rentals provide consistent, reliable income through lease agreements, usually lasting 12 months or more. While the monthly rental income may not match STRs during peak seasons, the stability of LTRs reduces vacancies and management workload, making them a more passive investment option.

Location and Regulations 

The location of your property plays a significant role in determining whether it’s better suited for STRs or LTRs. Properties near Nashville’s attractions thrive as short-term rentals, but it’s important to understand local zoning laws and permit requirements. Nashville has strict regulations for STRs, particularly for non-owner-occupied properties, which may limit your options.

For long-term rentals, suburban areas like Murfreesboro or Franklin are ideal. These neighborhoods attract families and professionals looking for stable housing near good schools and job opportunities. Plus, LTRs typically face fewer legal hurdles compared to STRs.

Your Investment Strategy 

Ultimately, the best choice depends on your investment goals and preferred management style. If you’re comfortable with the active involvement required by STRs and want to maximize income during high-demand periods, short-term rentals could be a great fit. On the other hand, if you’re looking for a steady, hands-off     approach with long-term tenants, LTRs may be the better option.

No matter which path you choose, Middle Tennessee’s real estate market offers incredible opportunities for growth. I’m here to help you navigate the market, find the perfect property, and even provide a cash flow analysis to guide your decision.

5 Key Takeaways

1. Short-term rentals can generate higher income but require active management.

2. Long-term rentals provide stability and lower day-to-day involvement.

3. Nashville’s STR regulations are strict—know the rules before investing.

4. Suburban areas like Murfreesboro and Franklin are ideal for LTRs.

5. Align your investment strategy with your goals and resources.

---

If you’re ready to take the next step in building your real estate portfolio. From exploring your investment options, to finding you the ideal rental property, I am happy to help each step of the way. Contact me directly via email at sonnett.sells.murfreesboro@gmail.com