I spoke recently with a friend who owns several Gatlinburg cabins (of all sizes from 1 bedroom to 8 bedrooms) and he were talking about the performance of one of his vacation rental properties in particular. When he told me that it would rent for 270+ nights this year I was floored. To be sure, years ago, I was able to easily find homes that generated unbelievable numbers but we’ve built a LOT of cabins since then. Can cabins still generate those gaudy numbers even in a recession economy – see Gatlinburg Real Estate Blog: Gatlinburg and the Great Recession?
The answer is an unqualified “Yes!”. This one bedroom luxury cabin in Chalet Village is rented like I wouldn’t have believed and will in fact produce an overall occupancy rate of 75% or even a little more for the fully year of 2009. The real question is what is it that allows this particular property to do so well? Here are the reasons as well as I can determine them:
- The cabin is a “state of the art” property that is nearly new construction.
- It is a large one bedroom that is romantic and yet has space to move about.
- Every rental feature people are looking for is present and it is nicely furnished too.
- The cabin enjoys a great rental location that actually adjoins the Great Smoky Mountain National Park.
- The property is well marketed by a very capable rental management company.
- It is well displayed on the Internet.
In an economic environment where there is so much bad news, it is great to see a great success story. The “Parkside Escape” cabin will probably generate gross rentals of around $40,000 or a little more this year. If you are looking for a wonderful investment you really ought to consider a vacation rental cabin in the Smokies. This particular property was for sale until earlier this week but when the rental numbers kept going up our client decided he just didn’t want to sell so we pulled it off the market. If I had known the kind of success he was having we would have sold it! We do however have other properties that are also capable of cash flowing. Please let me know if you would like to learn more about a great Gatlinburg or Pigeon Forge vacation rental cabin.