17,000 cabin rentals in the PF area

17,000 cabin rentals in the PF area

John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes

Saw this article about the Pigeon Forge area currently having 17,000 rentals!

https://www.wbir.com/article/travel/east-tennessee-airbnb-rentals/51-eb78e72d-ef87-45a5-90a8-089a9eeb32b0

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Realtor · Gatlinburg · Member since 2020 · 1k+ posts · 957 votes
3y
Quote from @Mack Lengel:

I also saw that. If you were to use Perato's Principle it means roughly 3,400 of those properties bring in 80% of the bookings/revenue

Everyday on MLS I am seeing old and beaten down homes being listed that used to rent during Covid for a good return. Now these same houses are getting booked only a handful of dates. I think we have a year or so to remove this type of inventory from the STR market (it simply won’t make sense for these people to continue them as STR), and hopefully the higher interest rates will slow down new construction and maybe next year we will be back to a better supply demand situation. 
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  • Smokies / Greenville, SC · Member since 2021 · 129 posts · 146 votes
    3y

    I also saw that. If you were to use Perato's Principle it means roughly 3,400 of those properties bring in 80% of the bookings/revenue

  • Real Estate Agent · Smoky Mountains, TN · Member since 2022 · 1k+ posts · 984 votes
    3y
    Quote from @Mack Lengel:

    I also saw that. If you were to use Perato's Principle it means roughly 3,400 of those properties bring in 80% of the bookings/revenue

    Yeah there are definitely a lot of under performers out there!
  • Real Estate Agent · Smoky Mountains, TN · Member since 2022 · 1k+ posts · 984 votes
    3y

    I saw this article yesterday. Interesting! That’s quite a few for Knoxville which is surprising. 

  • Realtor · Gatlinburg · Member since 2020 · 1k+ posts · 957 votes
    3y
    Quote from @Mack Lengel:

    I also saw that. If you were to use Perato's Principle it means roughly 3,400 of those properties bring in 80% of the bookings/revenue

    Everyday on MLS I am seeing old and beaten down homes being listed that used to rent during Covid for a good return. Now these same houses are getting booked only a handful of dates. I think we have a year or so to remove this type of inventory from the STR market (it simply won’t make sense for these people to continue them as STR), and hopefully the higher interest rates will slow down new construction and maybe next year we will be back to a better supply demand situation. 
  • Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes
    3y
    Quote from @John Underwood:

    Saw this article about the Pigeon Forge area currently having 17,000 rentals!

    https://www.wbir.com/article/travel/east-tennessee-airbnb-rentals/51-eb78e72d-ef87-45a5-90a8-089a9eeb32b0

    So many rentals, so little demand. ;-) 

    It's kind of like the guys who invented a computer printer that they were selling for $1,000,000. When told there was a lot of competition out there that was better and cheaper, they replied "yeah, but we only need to sell one printer". 






  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    Pareto principle - https://en.wikipedia.org/wiki/...

    For those that are interested. I am a Six Sigma guy so...lots o' charts.

  • John UnderwoodPro Member
    OP
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    3y
    Quote from @Mack Lengel:

    I also saw that. If you were to use Perato's Principle it means roughly 3,400 of those properties bring in 80% of the bookings/revenue


     True!

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