"I have no bookings for February"

This week, I was contacted by an investor that purchased an exquisite home in Gatlinburg, in the Chalet Village area, last June.  It isn't a "cabin", but it certainly checks a lot of boxes and has an amazing view.  Yet not a single booking in February.  

"My realtor projected $170,000 a year."  I had to break it to her that her realtor was probably basing that on the bubble years of 2021 and 2022.  We humans are funny.  We have this idea that whatever the situation is today, it will always and forever more remain that way.

Well, it won't.  As in any industry, vacation rentals have their peaks and valleys.  The peaks can be exhilarating, and the valleys can be excruciating.  

My recommendation to this investor is, forget what the property is "supposed" to rent for, and set the price at what it "will" rent for.  If that means $269 per night instead of $629, then that's what you have to do.  It certainly isn't producing anything by sitting empty.

We are returning to 2019 numbers this year.  If your numbers don't work with that, sell your house and move on.  It could be a long while before we see the numbers of 2021 and 2022 again.  Although the day will come!