Is Westmoreland, Tennessee Good for Airbnb Investment?

To start an Airbnb in Westmoreland, Tennessee, begin by researching local zoning laws and regulations through Sumner County planning department, as Westmoreland typically follows county guidelines for short-term rentals which may require special use permits or conditional use permits depending on the property's zoning classification. Contact the Westmoreland city clerk at (615) 644-2417 to verify specific municipal requirements, obtain necessary business licenses (estimated $50-150), and ensure compliance with fire safety codes and building inspections. Find a suitable property by searching residential areas near Bledsoe Creek State Park or historic downtown Westmoreland, considering properties with 2-3 bedrooms that can accommodate families visiting local attractions, with average property costs ranging $150,000-300,000. Furnish the space with comfortable, durable furniture emphasizing the area's rural charm and proximity to Old Hickory Lake, including essentials like quality bedding, kitchen appliances, WiFi, and outdoor furniture for porches or patios. Create your Airbnb listing highlighting nearby attractions such as Bledsoe Creek State Park, Cordell Hull Birthplace State Park, and easy access to Nashville (45 minutes away), setting competitive rates around $80-150 per night based on local market analysis. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges or installing smart locks, maintaining the property regularly, and ensuring compliance with Tennessee's 9.25% sales tax requirements for short-term rentals while keeping detailed records for tax purposes.

To identify profitable short-term rental properties in Westmoreland, Tennessee, focus on properties within 2-3 miles of Bledsoe Creek State Park and near Center Hill Lake, as these areas attract outdoor enthusiasts and water recreation visitors year-round. Target 2-4 bedroom homes or cabins with lake views, outdoor amenities like fire pits or hot tubs, and modern interiors that photograph well for listings. Analyze pricing by researching comparable STRs on Airbnb and VRBO within a 10-mile radius, noting that lakefront properties typically command $150-250 per night while inland properties average $80-150, with peak seasons during summer months and fall foliage periods. Study competition by examining occupancy rates, guest reviews, and amenities offered by existing STRs, particularly those managed by companies like Vacasa or local property management firms that dominate the Center Hill Lake market. Utilize tools like AirDNA and Mashvisor for market analysis, the Sumner County property assessor's website for property values and tax information, and partner with local real estate agents familiar with STR regulations, as Westmoreland falls under Sumner County's zoning requirements which generally allow STRs in residential areas with proper permits.

To obtain an Airbnb/STR permit in Westmoreland, Tennessee, you must first contact the Westmoreland City Hall at 615-644-3435 or visit their office at 109 College Street to inquire about short-term rental regulations, as the city may have specific ordinances governing STRs. You'll likely need to submit an application form along with required documents including proof of property ownership or lease agreement, certificate of occupancy, general liability insurance policy (typically $1 million minimum), floor plan of the rental unit, emergency contact information, and parking plan. The application fee is estimated at $100-200 annually, with possible additional inspection fees of $50-75. You must also obtain a business license from Sumner County and register with the Tennessee Department of Revenue for state sales tax collection. The property must comply with local zoning requirements, fire safety codes, and may require smoke detectors in all bedrooms, carbon monoxide detectors, fire extinguishers, and clearly marked exits. The approval timeline typically takes 30-60 days depending on inspection scheduling and document review. Additionally, you'll need to collect and remit local occupancy taxes, maintain guest registries, and ensure compliance with noise ordinances and occupancy limits, with annual permit renewals required.

Short-term rentals (STRs) are generally legal in Westmoreland, Tennessee, as the city has not enacted specific prohibitions against vacation rentals, though operators must comply with standard business licensing requirements and state regulations. The city follows Tennessee's statewide approach which allows STRs while requiring proper registration and tax collection through the Tennessee Department of Revenue. Properties must meet basic safety and zoning requirements, with most residential areas permitting STR operations unless specifically restricted by homeowners associations or deed restrictions. Westmoreland does not appear to have implemented the more restrictive regulations seen in larger Tennessee cities like Nashville or Memphis, such as caps on STR numbers or mandatory spacing requirements between properties. Operators must collect and remit state sales tax and local occupancy taxes, maintain proper insurance, and ensure compliance with fire safety codes. Recent changes at the state level in 2021-2022 have strengthened the framework for STR regulation while generally maintaining local authority to impose reasonable restrictions, though Westmoreland has not implemented significant new local ordinances as of 2023.

The best areas for Airbnb investment in Westmoreland, Tennessee include the historic downtown district near the Red River, which attracts visitors interested in antique shopping, local festivals, and the town's Civil War history. The residential neighborhoods along Highway 52 offer proximity to Bledsoe Creek State Park and Old Hickory Lake, drawing outdoor enthusiasts, fishing groups, and families seeking lakefront recreation. Areas near the Sumner County fairgrounds benefit from seasonal events and agricultural tourism. The corridors connecting to nearby Gallatin (15 minutes away) capture overflow from business travelers visiting major employers like Gap Inc. and Beretta, while also serving tourists heading to historic mansions and distilleries in the region. Properties within walking distance of Westmoreland's Main Street provide access to local dining and the annual Westmoreland Heritage Festival, making them attractive to visitors seeking small-town Tennessee experiences while remaining close to Nashville (45 minutes) for day trips to music venues and attractions.

Airbnb properties in Westmoreland, Tennessee are subject to Tennessee state sales tax of 7% and state lodging tax of 3%, totaling 10% in state taxes on short-term rental accommodations. Sumner County, where Westmoreland is located, imposes an additional 5% county occupancy tax, bringing the total tax rate to approximately 15%. The City of Westmoreland may impose its own local occupancy tax of up to 5%, though the exact rate is typically 2-3%, potentially making the total tax burden 17-20%. These taxes are collected at the time of booking through Airbnb's platform, which automatically calculates and remits state and local taxes to the appropriate authorities on behalf of hosts in most Tennessee jurisdictions. Hosts must register with the Tennessee Department of Revenue and obtain a sales tax permit, and may need to register separately with Sumner County and the City of Westmoreland depending on local requirements. Tax remittance is typically done monthly or quarterly depending on volume, with returns due by the 20th of the month following the reporting period. Exemptions generally apply to stays of 30 days or longer, which are considered long-term rentals rather than transient accommodations, and certain government or non-profit travelers may qualify for exemptions with proper documentation.

Starting an Airbnb in Westmoreland, Tennessee requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000-180,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property typically runs $8,000-12,000 including beds, linens, kitchen essentials, living room furniture, and decor from retailers like IKEA, Wayfair, and local furniture stores. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-3,500. Permits and fees vary but expect $300-800 for business licenses, short-term rental permits, and county registration requirements. Insurance including landlord coverage and short-term rental protection costs $1,200-2,000 annually. Utility deposits and connections for electricity, water, internet, and cable run $400-600. First six months operating costs including utilities ($150-250/month), cleaning services ($50-80 per turnover), property management software like Airbnb Plus or VRBO ($30-50/month), maintenance reserves ($200-400/month), and marketing total approximately $3,000-5,000. Additional considerations include potential HOA fees, property taxes, and emergency repair funds which could add another $2,000-4,000 to initial costs.

Airbnb properties in Westmoreland, Tennessee typically generate annual revenues between $15,000-$35,000 for well-positioned properties, with average daily rates ranging from $75-$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. Properties near Cordell Hull Lake and those offering unique amenities like hot tubs or fire pits achieve higher occupancy rates of 60-75% compared to basic properties at 40-55%. Success factors include proximity to Nashville (45 minutes), lake access, professional photography, responsive hosting, and competitive pricing during peak seasons like summer lake activities and fall foliage. A typical 3-bedroom lakefront property generating $28,000 annually with $16,000 in expenses yields approximately 43% profit margins, while properties further from water features or lacking distinctive amenities often struggle with 15-25% margins due to higher vacancy rates and lower nightly rates.

Airbnb investments in Westmoreland, Tennessee typically generate annual ROI of 12-18% based on the area's proximity to Nashville (45 minutes) and growing tourism demand. Cash-on-cash returns generally range from 8-14% annually, with properties averaging $150-250 per night during peak seasons and 60-75% occupancy rates. Initial profitability usually occurs within 18-24 months, considering startup costs of $15,000-25,000 for furnishing and marketing. The market benefits from Nashville's overflow tourism, particularly during CMA Music Festival and other major events, with properties near Old Hickory Lake commanding premium rates. Three-bedroom homes purchased around $200,000-300,000 typically generate $35,000-55,000 in annual gross revenue, while operating expenses including cleaning, utilities, insurance, and platform fees consume approximately 40-50% of gross income. The timeframe to break-even on initial investment ranges from 6-8 years, though cash flow positive operations typically begin within the first year of operation given proper pricing strategy and consistent bookings.

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 Westmoreland, Tennessee. Local real estate agents like Keller Williams Middle Tennessee and RE/MAX Elite have agents experienced in investment properties and short-term rental markets in the Sumner County area. BiggerPockets Pro provides market data and connects investors with local professionals familiar with Westmoreland's rental regulations and tourism patterns. AirDNA offers detailed market analytics for short-term rental performance in the Nashville metropolitan area, which includes Westmoreland. Local property management companies such as Nashville Short Term Rental Management and Tennessee Vacation Rentals can provide insights into profitable properties and ongoing management services. Roofstock and Awning are national platforms that specifically focus on turnkey rental properties and short-term rental investments, with some inventory in Tennessee markets. Additionally, local real estate investors and meetup groups in the Nashville area, such as the Middle Tennessee Real Estate Investors Association, often have members familiar with profitable Airbnb opportunities in smaller markets like Westmoreland.