Managing Your Property
Market News & Data
General Info
Real Estate Strategies

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal



Real Estate Classifieds
Reviews & Feedback
Updated 10 months ago on . Most recent reply

Should I switch my Nashville long-term rental to short-term?
I have a 2015 3/2 single family home just north of Nashville in Robertson County. I've been renting it to the same tenant almost 4 years now. I'm just making about $250 net each month off of $1900/month rent (about $1,450 total for mortgage, insurance, taxes, etc.) , but appreciation has helped, the tenant is great, I have a property manager. As long as there are no repairs I have to approve and monitor, it's hands off. It works for me just fine.
However, my uncle who handles short-term rentals suggests I might could make much more turning it into short-term rental. But with that comes more expenses, more insurance, more turnover, more cleaning services (I live 3 hours away) - so much more to deal with. And I'd have to spend $10,000 to $20,000 I imagine to buy furniture, kitchenware, beds, dressers, etc.
The extra hassle wouldn't be worth it to me unless I was able to net on average $1,500 a month. Even if I did that, the first year itself would end up only paying for the furnishings.
This might be a broad question, but here it is - with a $1,450 mortgage, insurance, taxes payment, could / would a nice 3/2 about 40 minutes north of Nashville downtown net enough to be worth it (again, my "worth it" would be netting $1,500 a month on average after mortgage, insurance, listing fees, management fees, cleaning services, etc.)?
Most Popular Reply

Thanks so much to both of you. Based on both of your posts I’ve done a little math and calculated I would have to charge $255 a night (at a 44% occupancy rate) to stand the smallest chance of making what would make this worth it to me. And
- I’m sure I’m missing some expenses (repairs, taxes, insurance, etc.)
- Still my first year in this scenario would simply pay for furnishing the house in the first place
Income - $3,315
Mortgage - $1,450
Utilities - $350
20% management fee - $520
Even this best case scenario would only net me $1,000 a month, and honestly, I would want more to make it worth it. It would be a new endeavor with its own challenges, and I’m fairly content with my LTR right now. I turned this into a LTR just because we moved 2.5 years after buying it and I wanted to rent it to not lose money on the move. And it has done that well.
Thanks for your help!!