Smoky Mountain Vacation Rental

[John Craven]

Hello BP Members,

I hope everyone is staying safe, healthy and sane in these crazy times.  I am currently under contract on a vacation rental in the Smoky Mountains (approx. 10 min from Pigeon Forge), with a closing date set for the end of April.

My plan has been to move forward with the purchase despite the current environment. However, with Gov. Lee's decision this week to extend the 'safer at home' order through the end of April, I'm becoming hesitant to step in to a property that I can't use or rent when I take possession.

I have sufficient reserves set aside, and I am otherwise able to support the expenses of the property with my W2 income.  So, riding out a few months of no to low revenue wouldn't be a problem, but obviously would result in using up some of my reserves.

I'd like to get y'all's take on how you see the Smokies' vacation rentals doing over the next 3-6 months.  Any thoughts or insight would be much appreciated. 

[Alan Ford]

Hi John - this came to me this morning from my Property Manager and I think its all pretty accurate:

Instead, I want to look past this crisis and offer some encouragement for the future. Things will get better. This will not last forever. We will be here to see you through.
While we are likely in store for a very rough ride in the short term, I want you to know – the Smoky Mountains will be the first vacation market to recover. You can count on that. Put it in the bank. All the reasons that make Sevier County Tennessee the best place in the country to own income earning vacation property are still right here. In fact, many of the things making us a desirable destination, will ring especially true once the dust clears from the COVID panic.

• We are a driving destination located within a day’s drive of 75% of the US population. You don’t have to get on a crowded airplane to visit the Smoky Mountains.
• We are a nature-driven tourist destination. The GSMNP is still our number one attraction, and those mountains are not going anywhere. Visitors to the Smokies don’t have to get in the crowds to enjoy their time here.
• We are affordable compared to other vacation destinations and staying in a private cabin offers entertainment and food preparation options that add vacation value.
• Renting a private mountain home will be more immediately appealing than hotels when guests return to planning vacations. Enjoying a private cabin keeps you out of those hotel elevators and common spaces.
• The Smokies is a family vacation destination – and some stress-free family time will be high on everyone’s wish list soon.

While I want each of you to be prepared for some tough months ahead, I also want you to be encouraged. Our vacation market, like most of the world, is on pause. However, things will not stay paused forever. The show will go on. Our guests will return. The Smokies will always be desirable, and we will be here promoting all those things that make our destination, and your beautiful cabins – the place to be.