Is Cool Springs, Tennessee Good for Airbnb Investment?

To start an Airbnb in Cool Springs, Tennessee, begin by researching local regulations through Williamson County and Franklin city offices, as Cool Springs falls under Franklin's jurisdiction which requires short-term rental permits and business licenses, with properties needing to comply with zoning laws that typically allow STRs in residential areas with restrictions on occupancy and parking. Obtain necessary permits including a business license from Franklin ($50-100), short-term rental permit ($200-300 annually), and ensure compliance with Tennessee state tax requirements for lodging. Find a suitable property by targeting single-family homes or condos in neighborhoods like Westhaven, Fieldstone Farms, or near the Cool Springs Galleria, with prices ranging $300,000-600,000 for purchase or $1,500-3,000 monthly for rental arbitrage opportunities. Furnish the space with quality furniture from local stores like Ashley HomeStore or Rooms To Go, focusing on neutral décor, essential amenities, high-speed internet, and safety features like smoke detectors and keyless entry systems, budgeting $15,000-25,000 for complete furnishing. List your property on Airbnb and VRBO with professional photography, competitive pricing ($80-200/night depending on size and location), and detailed descriptions highlighting proximity to Cool Springs attractions, Nashville (20 minutes), and business centers. Manage operations by implementing automated check-in systems, hiring local cleaning services like Turnover BnB or MaidPro Nashville ($75-150 per turnover), maintaining 24/7 guest communication, and partnering with local property management companies like RedAwning or Vacasa if needed for full-service management at 15-25% commission rates.

To identify profitable short-term rental properties in Cool Springs, Tennessee, focus on locations within 2-3 miles of major corporate headquarters like Mars Petcare, Nissan North America, and Tractor Supply Company, as well as proximity to The Mall at Green Hills and medical facilities at Williamson Medical Center. Target 2-4 bedroom single-family homes or condos built after 2000 with modern amenities, dedicated workspaces, parking, and outdoor spaces, particularly in neighborhoods like Brentwood, Franklin, and Nolensville Pike corridor. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against comparable properties, aiming for average daily rates of $120-200 depending on size and location, while analyzing seasonal demand patterns driven by business travel and Nashville tourism overflow. Research competition through Airbnb and VRBO searches within 5-mile radius, identifying gaps in luxury amenities or corporate-friendly features, and monitor occupancy rates of similar properties using tools like AllTheRooms and Transparent. Utilize local resources including Williamson County planning department for zoning regulations, Nashville Area Association of Realtors MLS data, STR Helper for permit requirements, and connect with local property management companies like RedAwning or Vacasa to understand operational costs and market dynamics specific to the Cool Springs submarket.

To obtain an Airbnb/STR permit in Cool Springs, Tennessee, you must apply through the City of Franklin since Cool Springs falls within Franklin's jurisdiction. Begin by submitting an application to the Franklin Planning and Sustainability Department located at 109 3rd Avenue South, which requires a completed short-term rental permit application form, proof of property ownership or lease agreement with landlord consent, a site plan showing parking arrangements, proof of liability insurance (minimum $1 million), and a floor plan indicating maximum occupancy. The application fee is approximately $150 with an annual renewal fee of $100. You must also register for a business license through the City Clerk's office for an additional $15 fee and obtain a certificate of occupancy if the property hasn't been previously inspected. Franklin requires STR properties to maintain a maximum occupancy of two people per bedroom plus two additional guests, provide adequate parking (one space per bedroom), and designate a local contact person available 24/7 who can respond within 30 minutes. The property must pass a safety inspection checking smoke detectors, carbon monoxide detectors, fire extinguishers, and emergency exit plans. Processing typically takes 4-6 weeks from submission of a complete application, and permits are valid for one year requiring annual renewal by December 31st.

Short-term rentals (STRs) are legal in Cool Springs, Tennessee, which is part of Williamson County and falls under Franklin's jurisdiction. The City of Franklin allows STRs but requires operators to obtain a business license and comply with specific regulations including occupancy limits, parking requirements, and noise ordinances. Properties must meet safety standards and operators must provide contact information to neighbors and the city. STRs are prohibited in certain residential zoning districts, particularly those designated as single-family residential areas, though some exceptions exist for owner-occupied properties. Recent changes in 2022-2023 have tightened regulations, including stricter enforcement of the 10-person occupancy limit, mandatory registration with the city, and enhanced penalties for violations. The city has also implemented a complaint-driven enforcement system and requires STR operators to maintain liability insurance, with Williamson County collecting applicable occupancy taxes on all short-term rental stays.

The best areas for Airbnb investment in Cool Springs, Tennessee include the core Cool Springs Boulevard corridor near the Galleria mall and major corporate headquarters like Nissan North America and Mars Petcare, which attracts consistent business travelers and shopping tourists year-round. The neighborhoods around Carothers Parkway offer excellent proximity to both the business district and entertainment venues like the FirstBank Amphitheater, drawing visitors for concerts and events from April through October. Areas near McEwen Drive provide strategic access to healthcare facilities including Williamson Medical Center, attracting medical tourists and visiting families. The residential neighborhoods between Mallory Lane and Old Hickory Boulevard offer a quieter setting while maintaining close proximity to Cool Springs' business centers, appealing to extended-stay business travelers and families visiting the area's numerous corporate offices. Properties near the Cool Springs Transit Center benefit from easy access to Nashville via public transportation, making them attractive to visitors who want suburban comfort with urban accessibility. The Wilson Pike corridor offers upscale accommodations for executives visiting the numerous Fortune 500 companies headquartered in Cool Springs, while areas near Seaboard Lane provide access to both business districts and recreational facilities, creating year-round demand from corporate travelers, medical visitors, and tourists attending events at nearby venues.

Airbnb properties in Cool Springs, Tennessee are subject to multiple lodging taxes including Tennessee's state hotel occupancy tax of 7%, Davidson County's local hotel occupancy tax of 6%, and the City of Franklin's hotel occupancy tax of 5%, totaling approximately 18% in combined lodging taxes. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began operating in Tennessee around 2019. Airbnb remits the collected taxes directly to the Tennessee Department of Revenue on a monthly basis for state taxes, while local taxes for Davidson County and Franklin are remitted to their respective local tax authorities. Property owners must register with the Tennessee Department of Revenue and obtain a hotel tax permit, and may need to file monthly returns even when Airbnb collects the taxes to ensure compliance. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than short-term lodging, and certain government or non-profit organization bookings may qualify for exemptions with proper documentation.

The total cost to start an Airbnb in Cool Springs, Tennessee is approximately $485,000-$565,000. Property purchase costs around $400,000-$475,000 based on median home prices in the Cool Springs area. Furnishing a 3-bedroom property typically runs $15,000-$25,000 including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic marketing materials total $1,500-$3,000. Permits and fees including business license, short-term rental permit, and inspection fees range from $500-$1,500 depending on local regulations. Insurance for short-term rentals costs approximately $2,000-$4,000 annually, with the first year paid upfront. Utility setup and deposits for electricity, water, gas, internet, and cable run $500-$1,000. First six months operating costs including utilities ($1,800), cleaning services ($3,600), maintenance and repairs ($2,000), property management software ($300), and marketing ($1,000) total approximately $8,700. Additional working capital of $5,000-$10,000 is recommended for unexpected expenses and initial vacancy periods while building reviews and bookings.

Airbnb properties in Cool Springs, Tennessee typically generate annual revenues of $25,000-$45,000 for well-positioned units, with average daily rates ranging from $85-$150 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25% of revenue), utilities ($150-300 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins typically range from 15-35% for successful properties, with higher-end condos and homes near corporate centers like Mars Petcare and Nissan North America achieving premium rates due to business traveler demand. Success factors include proximity to Cool Springs Galleria, corporate offices, and Nashville attractions (20 minutes away), professional photography, consistent 4.8+ star ratings, and strategic pricing during peak seasons like CMA Fest and NFL games. Properties within walking distance of restaurants and shopping centers, particularly 2-3 bedroom furnished units targeting business travelers and families visiting the area, demonstrate the strongest performance with occupancy rates of 65-80% and annual net profits of $12,000-$18,000 after all expenses.

Based on Cool Springs, Tennessee market data, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% depending on property type and location within the area. Properties near the Cool Springs Galleria and corporate centers like those housing Nissan North America and Mars Petcare tend to perform at the higher end of this range due to consistent business traveler demand. Initial profitability usually occurs within 6-12 months, with full investment recovery expected in 5-7 years. The market benefits from Cool Springs' position as a major business hub south of Nashville, generating steady occupancy rates of 65-75% annually, with peak performance during corporate events and Nashville tourism overflow periods, resulting in average daily rates of $120-180 for well-positioned properties.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors in Cool Springs, Tennessee. Local real estate agents in the area include Keller Williams Realty in Franklin, RE/MAX Elite in Brentwood, and Benchmark Realty who have experience with investment properties in the Cool Springs market. National services like BiggerPockets, Mashvisor, and AirDNA provide market analysis and property identification tools for the Cool Springs area. Local property management companies such as RedAwning, AvantStay, and Nashville Short Term Rental Management offer turnkey Airbnb services for investors. Real estate investment firms like HomeVestors and Roofstock also operate in the Tennessee market and can assist with identifying profitable rental properties. Additionally, local mortgage brokers like First Community Mortgage and Pinnacle Financial Partners specialize in investment property financing for short-term rentals in the Cool Springs and greater Nashville metropolitan area.