Pool or Views for vacation rentals

[Ankur Jain]

Hi - I am looking to purchase a property in the Smoky Mountains area and operate as a short term rental. Certain forums and podcasts I listed to mentioned that pools are a big trend currently though they tend to be in newer developments that do not necessarily have views. Or there are properties with reasonable views but don’t have a pool. Can you shed some light on what’s better for vacation rental overall return? Maybe from a. Cash yield and home price appreciation standpoint?

Most of the properties I am looking at are in pigeon forge area or Sevierville area and not exactly in Gatlinburg. Can you please also provide some insight if that changes occupancy and/or desirability? If I just go by AirDNA, the difference is not much in annual revenues.

Thanks,

Ankur

[Ken Boone]

What I have found is that like cabins, one with a view and the other with a pool, that the pool cabin will significantly outperform the view cabin, all other things being equal. There will always be exceptions of course.

[Madri Koppe]

I’m on the west coast so pools are often a selling point and can charge more for this feature. They are also expensive to build if the home doesn’t already have one. I’d research your market to see if a pool makes a significant difference and if this is even a sought after feature. As a consumer, a pool is always nice to have but I’d only pay more for it if the location warranted it and it was the norm. 

[Heather Cunningham]

If you are serious about the Smokies, hands down if you can find a place with a great view that is what I would go with.  We have 2 cabins in the smokies and the one with the amazing views does almost double the rental volume of the one that does not have the best views and they are both new build cabins with average amenities..no pools.  Our amazing view location is beating out pool cabins and we do not have the hassles of a pool in the smokies, especially an indoor pool...food for thought.  Pools are nice, though and people love them.  There are plenty of neighborhoods where you can still get access to a pool for your guests.  Just my experience.

[Brooke Larson]

I agree with @Heather Cunningham ! 

In addition to using AirDNA, research active and potential competitor rentals in your target market near Gatlinburg by browsing booking platforms. Take a close look at both the property types, analyzing their average nightly rates and occupancy trends.

As you search for investment properties, consider those with both pools and stunning views. This will allow you to run specific underwriting and projection tools to better assess each option.

Remember, owning a property with a pool comes with added expenses, such as heating, emergency and routine maintenance, and higher insurance costs. Keep this in mind when calculating potential profitability.

Research active and potential competitive rentals in your intended market near Gatlinburg, not just through AirDNA, but searching booking platforms. Analyze both property types including the average nightly rates and occupancy rates. 

As you search for properties I would be open to viewing both properties with pools and amazing views. From here, you can analyze specific properties and run underwriting and projection tools.

Keep in mind that running a property with a pool does incur more expenses, heating the pool, emergency maintenance, standard maintenance, higher insurance, etc.

[Kyle Smith]

Quote from @Ankur Jain:

Hi - I am looking to purchase a property in the Smoky Mountains area and operate as a short term rental. Certain forums and podcasts I listed to mentioned that pools are a big trend currently though they tend to be in newer developments that do not necessarily have views. Or there are properties with reasonable views but don’t have a pool. Can you shed some light on what’s better for vacation rental overall return? Maybe from a. Cash yield and home price appreciation standpoint?

Most of the properties I am looking at are in pigeon forge area or Sevierville area and not exactly in Gatlinburg. Can you please also provide some insight if that changes occupancy and/or desirability? If I just go by AirDNA, the difference is not much in annual revenues.

Thanks,

Ankur

A pool will get you on average $75-100/night in addition to normal rates (I think this number is dropping due to additional saturation of pool cabins). Some say a pool will trump a view and I tend to believe this, but if you have an epic view then it may tilt the other way. I have both and do very well. However, 10 out of 10 view lots are $300-500k right now. It's hard to make the math work and cash flow in this current STR market. Marginal views are more of an amenity, but with an incredible view, people are willing to pay extra and they are looking specifically for that epic view experience. But like I said, those lots are priced out of the market in my opinion. Be very careful and do your homework. Don't jump right in without learning the area. I would advise taking a year before you start. My 2 cents.