Gatlinburg Real Estate Blog

Once upon a time, many years ago, Smoky Mountain vacation rental cabins and chalets could actually generate enough rental income to pay for themselves.  In fact, several of our clients purchased or had built multiple cabins over a period of years because they not only paid for themselves, but they also created a handsome after-tax return.  Then came the real estate bubble and prices headed out of sight and in many cases went far beyond any reasonable valuation level.  At the height of the insanity, 480 square foot Gatlinburg area studio cabins sold for well over $200,000 and of course this simply wasn't sustainable.  There are only 365 nights in a year and as a cabin owner, one can only reasonably expect to rent your property for around 200 nights a year at best (although I have personally seen rentals that generated as many as 278 nights in a single year).  After the rental management fee which is typically 40% of gross rentals, cabin owners still must pay...

Once upon a time, many years ago, Smoky Mountain vacation rental cabins and chalets could actually generate enough rental income to pay for themselves.  In fact, several of our clients purchased or had built multiple cabins over a period of years because they not only paid for themselves, but they also created a handsome after-tax return.  Then came the real estate bubble and prices headed out of sight and in many cases went far beyond any reasonable valuation level.  At the height of the insanity, 480 square foot Gatlinburg area studio cabins sold for well over $200,000 and of course this simply wasn't sustainable.  There are only 365 nights in a year and as a cabin owner, one can only reasonably expect to rent your property for around 200 nights a year at best (although I have personally seen rentals that generated as many as 278 nights in a single year).  After the rental management fee which is typically 40% of gross rentals, cabin owners still must p...