Any east TN investors?

Question

I am an investor from Johnson City. I've been on bigger pockets for about three months and it has helped tremendously. I believe strongly in networking and its benefits and have seen other bigger pockets members benefit from local meetups. So if any one on bigger pockets is in the area I would love to meet with you to discuss your strategy, exepierence etc. Personally, business or personal I love spending time with like minded people and would love to connect with some of the bigger pockets members in the area!

Jeff Graves · Answer

@Tobey Porter You are correct that the management fees differ considerably for long term rentals typically a 7%-10% management fee (per moth) + "leasing commission" of 1/2 months rent for a 6 month lease and up to a full months rent for a 1 year lease.

For short term rentals the majority of the management fees here on Mau i ranges from 20% and up 35% - and some of the larger companies like the Aston or Outrigger will charge 50%.  Those types of commission can suck the cash flow out of the property.

That's why VRBO and Airbnb are so popular...you can "manage the property yourself" and save the majority of the management fees.  There are several changes taking place at VRBO - which I do prefer over Airbnb.  VRBO/HomeAway were purchased by Expedia so there will be multiple vertical channels that will provide exposure for our vacation rental. VRBO?HomeAway are doing away with their different subscription model and going to have one subscription rate ($3??) but take a page out of Airbnb's playbook and are now implementing a Guest Booking fee (it's less that what Airbnb's rates are) that the guest pays...not you.

I look at the fees both companies charge as reasonable and a cost of doing business.

I hope you find this information useful.

Aloha,

Jeff

Stacey Crawford · Answer

@Tobey Porter  My family has a home in Gatlinburg and I love that area!  I live in Sarasota, which I also love.  I get the best of both worlds, beach and mountains.  Feel free to message me with any questions.  My husband is a local realtor here.  Good luck!!!

Robert R. · Answer

We invest in vacation rentals in Gatlinburg

Jordan Scott · Answer

Hi @Skylar Dejesus,

This post is old but I am also looking to start investing in E. TN. I am from Johnson City, but live down near Knoxville so I would love to discuss some REI with fellow East Tennesseans!

Monika Haebich · Answer

Hi @Robert Smith,

May I ask what management company you are using and what you're being charged? I'd love to see if I could find something better for you.

Robert Smith · Answer

I see this is a fairly old post but if you are still looking to purchase a short term rental here in Gatilnburg or the local area let me know. I am working with some investors I manage other rental property for and we are running into the same thing, profit lost mainly due to fees. A large reason for the higher fees over traditional management fees are the taxes that have to be paid when doing short term rental business. In Gatlinburg there is also rental tax FYI. There are a few on the market now that are pretty close to right for purchase price but still a few stilling on the market over priced. The second home market is coming back but not like it was, people are still paying full price to rent them out whether nightly or weekly. I have a lot of experience in beach front rentals and basically the same thing.

Tobey Porter · Answer

@Jeff Graves I've heard property management differs a bit on vacation rentals versus buy & holds, which is where our limited experience lies.  I've also heard some of the bigger rental sites, VRBO, HomeAway, charge outlandish fees which really cut into profits.  Just curious your thoughts on using these sites and management on vacation rentals.

Jeff Graves · Answer

What questions do you have about vacation rentals?

Tobey Porter · Answer

@Jeff Graves The Gatlinburg/Pigeon Forge area. We're looking at purchasing somethin we can not only rent out but can use for our family vacations. We've narrowed it to to that area in TN and Sarasota.

Jeff Graves · Answer

@Toby is your question specific to Gatlinburg or VR in general?

Any east TN investors?

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