Buying a rental cabin in Gatlinburg Tennessee

[Sean M Neff]

Hi my name is Sean and I am new to Bigger Pockets. I'm wanting to invest in a cabin in Gatlinburg Tennessee to do short term rentals, and boy do I have alot of questions on what I need to know and do to get started.

First of all I would like to say that I travel all over the US for work and I absolutely love my job so that being said here are some questions I have.

#1) Can I do my own property management on my own using Airbnb, VRBO and Homeaway using my computer or cell phone or is it best to hire a professional property management company that will take 30 to 40% of the profits?

#2) If it's a good idea to do my own property management does anyone have any recommendations on a good real estate agent, cleaning service, handyman, electrician, plumber and anything else that I will need in that area?

#3) What other advice can anyone give me on starting out on doing a short term cabin rentals in Gatlinburg Tennessee?

Thank you very much for any help you can give me!

[Chuck Kramer]

Let me expand on my short response.

#1) Can I do my own property management on my own using Airbnb, VRBO and Homeaway using my computer or cell phone or is it best to hire a professional property management company that will take 30 to 40% of the profits?

Absolutely. And the PM's don't take 30-40% of profits, they take it from Gross, so it hits profits even harder.

#2) If it's a good idea to do my own property management does anyone have any recommendations on a good real estate agent, cleaning service, handyman, electrician, plumber and anything else that I will need in that area?

Yes, we can all recommend. Real Estate: @Avery Carl; cleaning service: Mountaineer Cleaning/Maint - but there are many other good ones too and Avery may be able to connect you with individuals, as opposed to companies; handyman, electrician, plumbuer: lots of good one, also bad. When time comes I have a few I can pass on to you.

Once you OWN the cabin, there is a Facebook group that is decent for referrals and they even keep lists of the service referrals, local sources for goods, problem guests, etc. You must be an owner to join though.

#3) What other advice can anyone give me on starting out on doing a short term cabin rentals in Gatlinburg Tennessee?

Familiarize yourself with the general area -- Gatlinburg, Pigeon Forge, and Sevierville cities, and then the surrounding areas that are not in city limits but still have those mailing addresses. As with an RE transaction, do your math and know your limits. In general, a reasonable rental cabin/chalet should be able to annually gross about 20% of its purchase price.

Be sure to read up on business requirements of the area. They are not onerous, but you need to know what business licenses are required and where to pay your lodging "privilege" taxes (city vs county). You also need to file taxes with TN State monthly and annually. None of these are onerous at all, just minor details you don't want to overlook.

Be prepared for higher than expected insurance and maintenance costs. It is still "wilderness" area. Insurance is high since the 2016 wildfires but not terrible. I would guess most 1-3 bedroom cabins are at or under $1800/yr. Pest control is a must and, depending on the type of home purchase, carpenter bee treatments too. 

These are all things that a really good agent will fill you in on as well. And Avery will definitely do that.