Property Management Insights: 5 Reasons Why Nashville is the Perfect Location for Your Investment Property
Real estate investors looking for their next investment property would be wise to consider Nashville. It’s a vibrant city steeped in music history and culture. But it’s more than country music and entertainment; Nashville is also a growing real estate market.
There are a number of excellent reasons to choose the Nashville market for your next investment. Here are five reasons why Nashville is the perfect location to buy a rental property.
1. Population Growth Creates a Large Tenant Pool
Nashville’s been growing. The population surge in this region could be due to any number of things; great education and university systems, high quality of life, and great job opportunities. Recently, U.S. News ranked Nashville as the best place to live in Tennessee and the 25th best place to live in the entire U.S.
That’s good news for investors; people are moving to the city not just for job opportunities, but because it’s a desirable place to relocate. The remote work trend is also helping Nashville grow. With more and more renters having the flexibility to live anywhere they want, even while holding onto their existing, high-paying jobs, cities like Nashville are more desirable.
The city has added nearly 400,000 new residents in the past decade, and metro Nashville is expected to add over 128,000 new residents by 2030.
More people moving into Nashville means more potential renters. These factors will contribute to high rental demand and low vacancy rates now and for the years to come.
2. Economic Strength in Nashville
One of the most important metrics for real estate investors to look at before investing in a market is the strength of the local economy. Does the entire economy revolve around one specific industry? That can be dangerous. Are there large and small companies set up in the area? That’s a good sign.
Nashville is in a good place, economically, and all signs point to continued growth. Industries that lead the area in job opportunities and economic development include healthcare, music, and technology. Some important things that have happened recently include:
- Opening of an Amazon headquarters. Amazon runs its Operations Center of Excellence out of Nashville, and there’s also a fulfillment center. This has provided thousands of jobs and a lot of economic stability to the area.
- Oracle, a software company, moved from Austin to Nashville in 2021. This has been a big deal for the local technology sector, inviting additional start-ups and businesses to set up shop in and around Nashville. It’s also created jobs and drawn new tenants to the city.
Music has always been a cornerstone of the local economy, but we’re now looking at huge influxes of dollars and labor thanks to healthcare, education, and manufacturing. The largest local employers outside of Amazon and Oracle are Vanderbilt University, Nissan North America, and HCA Healthcare.
3. High Quality of Life
Investing in a real estate market where people are happy to be is always good business.
In Nashville, residents enjoy a high quality of life, and they don’t have to pay high city prices like they might in San Francisco or New York.
There are so many options for dining, entertainment, and recreation. People love to visit, but they also love to live here, where there’s immediate access to the famous Music Row, The Grand Ole Opry, and The Ryman Auditorium. There’s also a lot of history in Nashville, such as The Hermitage, President Andrew Jackson’s home. The city has a full-scale replica of the Parthenon, and a 42-foot-tall statue of the goddess Athena covered in gold leaf.
Nashville is known as “Music City” for its more than 180 music studios and 5,000 working musicians. Residents can experience different genres of live music every night of the week. But, as residents quickly realize, there’s more to the city than just music. The city hosts unique architecture and museums. The metro area has a vast park system, pro sports teams, and various famous attractions.
The weather in Nashville isn’t as extreme as in some cities in the south. Residents experience mild winters and warm summers. It’s fun to live here, and that’s what will help us attract and retain tenants.
4. Tennessee is a Landlord-Friendly State
Every landlord in Tennessee is required to hold a license. Once you obtain that license, you don’t have a lot of legal hurdles to stand between you and a profitable rental home. This is a landlord-friendly state, which means there are fewer restrictions and requirements on rental property owners, even while tenant rights are protected.
A written lease is not required, for example, unless the rental agreement lasts more than three years (we still strongly recommend a written lease agreement, of course). There’s also a limited grace period that’s required for late rent, and late fees can be charged. There is no statewide rent control in Tennessee, and evicting a tenant for nonpayment of rent or a lease violation is fairly straightforward.
5. Leverage Nashville Property Management
Another great reason to invest in Nashville rental real estate is that you won’t be on your own. There are some innovative, smart, and service-oriented property management companies in Nashville.
When you partner with a local property management expert, you can expect some help during the entire investment lifecycle. We can help you identify a profitable investment property, tell you what kind of rents are likely to be earned, and estimate the maintenance costs you’ll be looking at as you prepare the property for the rental market and take care of it over the long term.
Choose a management company that knows the real estate market well and has invested in good technology. Our property management insights and analytics have helped our investors and owners save money and make better investment decisions.
We can’t wait to tell you more about the Nashville rental market and why you can be successful here. If you’d like to talk about the best way in, please contact us at Omni Realtors & Property Management.