Getting Started in The Smoky Mountains
Have you ever had an amazing mountain vacation in a cabin? What if you could build a portfolio of short term vacation rental cabins that you could use for your family’s vacations while also making the cabins available to other travelers for their vacations and make a profit? Sounds like a cool thing to do, maybe even dream like. A lot of investors are doing exactly this in Eastern Tennessee’s Smoky Mountains. A recent study of the area indicated that there are 17,000 short term rentals in Gatlinburg and Pigeon Forge, while the Great Smoky Mountains National Park reports tourism numbers in 2022 at nearly 13 million, three times the number of visitors to the next most popular park in the nation, the Grand Canyon National Park.
With this extreme amount of popularity in the area it is no wonder investors are buying cabins. However, with the high number of short term rentals in the area you will need to buy a cabin that stands out. This way the highest number of guests are likely to book your cabin over your neighbor’s cabin down the road. You’ll want to buy something special with all the amenities that guests are seeking. It is highly recommended to buy a cabin that enjoys beautiful views, preferably of the Smoky Mountains that they came to the area to see. You’ll also want to stock your cabin with all the amenities and comforts of home. Hot tubs and pool tables are a must for the area!
Where are the Smoky Mountains? Sevierville, Pigeon Forge and Gatlinburg are the main three towns that make up the heart of the Smoky Mountains. A lesser known area in the Smoky Mountains is Townsend, often referred to as the ‘peaceful side of the Smokies.’ Townsend is home to Cades Cove and River Rat, amongst some other key tourist favorites. Tourism, however, is slow to grow in Townsend due to the quieter nature of the town, and the fact that the town is slow to approve business zoning changes.
Your best bet is to buy a cabin in a spot that will consistently book. Your cabin will appeal to the most visitors if it is within a 20 minute drive of Dollywood, The Island in Pigeon Forge, or Ripley’s Aquarium of the Smokies. These are three of the hottest tourist attractions in the area and most guests will want to stay close to these sites to include them in their jampacked travel itinerary. An additional area to consider is Wears Valley, which is slightly farther than 20 minutes from these sites but enjoys its own unique appeal – a major park entrance called Metcalf Bottoms.
Occupancy and seasonality in the Smoky Mountains are what make it such a great market to invest in. Most cabins that are the best investment properties to consider are going to enjoy year round occupancy. These investment cabins typically book year round with lower occupancy periods being January and February. Back to school and graduation celebrations also cause additional slow travel periods. It is typical to book weekends during these lower months, however overall occupancy will be down during these periods.
The ideal cabin size to purchase is a two or three bedroom with two or three bathrooms. This size of cabin is great because you can cater to couples or small families. You will tend to book your calendar full at this size, and you can also get last minute bookings with this size of cabin. Large cabins usually book out further due to the nature of large groups needing to coordinate with each other prior to travel, in this case we don’t usually see last minute bookings at larger cabins.
Cabins in the Smoky Mountains typically have a loft, while some also have game rooms or finished basements. It is common for investors to put sleeper sofas or murphy beds in these spaces to increase occupancy in a two bedroom or three bedroom property.
What are you waiting for? The Smoky Mountains are calling you…and 13 million other people all seeking to book your cabin!