Is Brentwood, Tennessee Good for Airbnb Investment?

To start an Airbnb in Brentwood, Tennessee, begin by researching local zoning laws and regulations through the City of Brentwood Planning Department, as the city requires short-term rental permits and has specific zoning restrictions that typically limit STRs to certain residential areas with owner-occupancy requirements. Obtain necessary permits including a business license from Brentwood City Hall (approximately $50-100), a short-term rental permit (around $200-300 annually), and ensure compliance with fire safety codes and occupancy limits. Find a suitable property in approved zones, considering that Brentwood's median home prices range from $600,000-$1.2 million, or consider renting a property with landlord permission for STR use. Furnish the space with quality furniture, linens, and amenities targeting the area's business travelers and tourists visiting nearby Nashville, budgeting $15,000-30,000 for a complete setup. Create listings on Airbnb, VRBO, and Booking.com with professional photography highlighting proximity to Nashville (20 minutes), local attractions like Radnor Lake, and the upscale Brentwood community. Manage the property by setting competitive rates ($100-250/night depending on size and season), implementing a cleaning protocol between guests, maintaining 24/7 guest communication, and ensuring compliance with Tennessee's 9.25% sales tax plus local occupancy taxes, while considering hiring local property management companies like RedAwning or Vacasa if needed for day-to-day operations.

To identify profitable short-term rental properties in Brentwood, Tennessee, focus on locations within 10-15 minutes of downtown Nashville, near major attractions like the Country Music Hall of Fame, or close to Vanderbilt University and medical centers, as these areas generate consistent demand from tourists and business travelers. Target 3-4 bedroom single-family homes or luxury condos built after 2000 with modern amenities, parking, outdoor spaces, and high-end finishes that can command $150-300+ per night. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds long-term rental income by 40-60%, typically requiring purchase prices under $400,000-600,000 to maintain healthy profit margins after expenses. Research competition within a 2-mile radius using Airbnb and VRBO searches to ensure market saturation doesn't exceed 15-20 active listings per square mile, while identifying gaps in amenities or property types. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through agents familiar with Williamson County regulations, while monitoring Nashville tourism trends through the Nashville Convention & Visitors Corp and tracking seasonal demand patterns that typically peak during CMA Music Festival, NFL season, and spring/summer months when Music City attracts over 15 million annual visitors.

To obtain an Airbnb/STR permit in Brentwood, Tennessee, you must first contact the Brentwood Planning Department at City Hall located at 5211 Maryland Way to determine if short-term rentals are permitted in your specific zoning district, as the city has restrictive regulations on STRs. If allowed, you'll need to submit an application through the Planning Department including a completed STR permit application form, property deed or lease agreement, floor plan of the rental space, parking plan showing adequate off-street parking, contact information for a local property manager (required if owner lives more than 50 miles away), certificate of insurance, and Tennessee sales tax registration. The application fee is approximately $200-300 with an annual renewal fee of around $150. Required documents also include a business license from the city clerk's office (additional $50 fee), compliance with fire safety codes including smoke detectors and fire extinguishers, and adherence to occupancy limits typically set at 2 people per bedroom plus 2 additional guests maximum. The approval process takes 4-6 weeks and requires inspections by building and fire departments. Brentwood requires STRs to maintain quiet hours from 10 PM to 7 AM, provide adequate parking (minimum 2 spaces), and comply with HOA restrictions if applicable, with violations subject to fines up to $500 per day.

Short-term rentals (STRs) are legal in Brentwood, Tennessee, but operate under specific regulations established by the city. Brentwood requires STR operators to obtain a business license and comply with zoning restrictions that primarily limit short-term rentals to certain residential areas while prohibiting them in some neighborhoods to preserve residential character. The city typically requires properties to meet safety standards, maintain adequate parking, and follow noise ordinances, with operators often needing to provide contact information for a local representative available 24/7. Recent years have seen Brentwood, like many Tennessee municipalities, refining their STR regulations to balance tourism revenue with neighborhood concerns, including potential limits on the number of STR permits issued and enhanced enforcement mechanisms. Property owners must also comply with state tax requirements and may face additional local occupancy taxes, with violations potentially resulting in fines or permit revocation.

The best areas for Airbnb investment in Brentwood, Tennessee include the Cool Springs district, which attracts significant business travelers due to its concentration of corporate headquarters like Nissan North America and Tractor Supply Company, along with the Cool Springs Galleria shopping center drawing weekend visitors. The historic downtown Brentwood area near Maryland Farms offers appeal to tourists seeking charming Southern hospitality experiences and is popular for wedding parties visiting local venues. The Concord Road corridor provides excellent access to both Nashville attractions (20 minutes away) and local amenities, making it ideal for visitors attending Nashville events, concerts, or business meetings who prefer quieter suburban accommodations. The Granny White Pike area offers upscale properties that attract higher-end travelers and corporate executives, while the Wilson Pike corridor benefits from proximity to country music industry professionals and executives who frequently visit the area for business. These neighborhoods collectively benefit from Brentwood's reputation as an affluent suburb with excellent schools, low crime rates, and easy highway access to Nashville's airport, downtown district, and major entertainment venues, making them attractive to both leisure and business travelers year-round.

Airbnb properties in Brentwood, Tennessee are subject to multiple lodging taxes including Tennessee's state sales tax of 7%, state hotel occupancy tax of 7%, and Williamson County's local hotel occupancy tax of 5%, resulting in a combined tax rate of approximately 19% on short-term rental stays. The Tennessee Department of Revenue requires hosts to register for a sales tax permit and collect these taxes from guests at the time of booking or check-in, with monthly remittance due by the 20th of the following month for properties generating over $1,200 in annual rental income. Airbnb may collect and remit some of these taxes on behalf of hosts through their platform's tax collection service, but hosts remain ultimately responsible for ensuring compliance and may need to register separately with state and local authorities. Properties rented for 30 days or longer are typically exempt from transient occupancy taxes, and some exemptions may apply for government employees or certain non-profit organizations, though hosts should verify current rates and requirements with the Tennessee Department of Revenue and Williamson County tax authorities as rates and collection procedures can change periodically.

To start an Airbnb in Brentwood, Tennessee, expect total costs around $650,000-$750,000. Property purchase represents the largest expense at approximately $600,000 based on Brentwood's median home price as of 2024. Furnishing costs typically range $15,000-$25,000 for a complete setup including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and marketing materials run $1,500-$3,000. Permits and fees vary but budget $500-$1,500 for business licenses, short-term rental permits, and any required inspections from Williamson County and City of Brentwood. Insurance costs increase significantly for short-term rentals, expect $2,000-$4,000 annually compared to standard homeowner's insurance. Utilities including electricity, water, gas, internet, and cable average $200-$400 monthly depending on property size and guest usage. First six months operating costs encompass utilities ($1,200-$2,400), cleaning services between guests ($150-$300 per turnover), maintenance and repairs ($1,000-$2,000), platform fees to Airbnb and VRBO (3% of bookings), property management if outsourced (10-25% of revenue), and miscellaneous supplies and amenities ($500-$1,000), totaling approximately $8,000-$15,000 for the initial six-month period.

Airbnb properties in Brentwood, Tennessee demonstrate strong profitability potential with average daily rates ranging from $150-$300 depending on property size and amenities, generating monthly revenues of $3,000-$7,500 for well-managed properties with 60-70% occupancy rates. Operating expenses typically include 25-30% for cleaning and maintenance, 3% Airbnb service fees, 8-12% property management if outsourced, utilities averaging $200-$400 monthly, and insurance costs of $1,200-$2,000 annually, resulting in net profit margins of 35-45% for successful operators. Success factors in this affluent Nashville suburb include proximity to downtown Nashville (20 minutes), high-end finishes and amenities, professional photography, responsive guest communication, and targeting business travelers and music industry visitors who appreciate Brentwood's upscale residential character. Properties near Brentwood's shopping districts and with luxury features like pools, hot tubs, or spacious layouts for groups consistently outperform basic accommodations, with some hosts reporting annual profits of $25,000-$45,000 on properties generating $60,000-$90,000 in gross revenue, though success heavily depends on initial investment costs, financing structure, and active management commitment.

Airbnb investments in Brentwood, Tennessee typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the area's proximity to Nashville and strong tourism demand. Properties in desirable neighborhoods like Governors Club or near Radnor Lake often achieve occupancy rates of 65-75% with average daily rates between $150-250 depending on property size and amenities. Initial profitability usually occurs within 18-24 months, with investors seeing positive cash flow after accounting for mortgage payments, property management fees (typically 20-25%), cleaning costs, and maintenance expenses. The market benefits from consistent demand from Nashville visitors, business travelers to companies like Tractor Supply Company and Nissan North America, and families visiting Vanderbilt University, with peak seasons during CMA Music Festival, NFL season, and summer months generating premium rates that can boost annual returns to the higher end of the range.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors, offering comprehensive market analysis and property recommendations in Brentwood, Tennessee. Local real estate agents like those at Parks Realty, Benchmark Realty, and Village Real Estate Group have extensive knowledge of Brentwood's luxury market and can identify properties suitable for Airbnb investments. National services include AirDNA for market data analysis, Mashvisor for investment property analytics, and BiggerPockets for networking with local investors. Tennessee-based companies like Nashville Area Real Estate Investors Association provide local market insights, while firms such as RedAwning and Vacasa offer property management services for Airbnb investments. Local agents at Compass Nashville, RE/MAX Elite, and Keller Williams Realty have experience with investment properties in the Brentwood area. Additional services include STR Helper for compliance guidance, Host Financial for accounting services, and companies like Beyond Pricing and PriceLabs for dynamic pricing optimization to maximize rental income in Brentwood's competitive short-term rental market.