Before buying an Airbnb investment property, there’s a number of things that investors must keep in mind. First and most importantly, they must make sure they’re investing in locations where the short-term rental market is thriving. This is the only way they can make money and receive a good return on investment. While searching for where to buy Airbnb, many will come across Gatlinburg, Tennessee. Known as a gateway to the Great Smoky Mountains National Park, Gatlinburg attracts a lot of tourism traffic and has been ranking as one of the best places for buying a vacation home for years. Here’s why investing in Airbnb Gatlinburg will make for a smart real estate investment in 2020.
#1 Gatlinburg Airbnb Laws Are Friendly
Owning an Airbnb rental property can be really lucrative as data shows that renting out on Airbnb can yield higher rental income than renting out traditionally in almost every top city across the US. However, that doesn’t mean you can start a vacation rental business in any city with a strong tourism activity. Some cities, though very profitable for investing in short-term rentals, have legal issues with Airbnb. Many have even enforced strict Airbnb laws, making it almost impossible for investors to run an Airbnb business. New York City, Los Angeles, and San Francisco are just a few examples of cities with Airbnb legal issues. So is Airbnb legal in Gatlinburg?
Yes! and, fortunately, real estate investors won’t face strict laws here, making Gatlinburg an Airbnb friendly city in 2020. There are, however, some regulations that investors should comply with. Gatlinburg Airbnb regulations include obtaining a business license and paying 9.5% sales tax (7% goes to Tennessee and 2.5% is directed to Sevier County). Owners of Gatlinburg vacation rentals also need to fill out a one-page document about square-footage and how many bedrooms in the property to obtain a “tourist residency permit”. Unlike many cities, investors don’t need to submit detailed documents like floor plans or to notify neighbors about their intention to use the property as an Airbnb Gatlinburg rental.
Related: 20 Cities with No Airbnb Legal Issues in 2020
#2 Strong Demand for Vacation Rentals
Who said the perfect vacation is being beachside during the hot summer season? For many, it’s a cozy cabin near the Smokey Mountains. Indeed, over 11 million visitors flock to the Great Smoky Mountains each year, making it the most visited national park in the nation. Because of its close proximity to it, the Gatlinburg real estate market gets a lot of tourism traffic as well. Filled with endless activities, shows, and restaurants, Gatlinburg has something for everyone to enjoy. The area becomes extremely crowded during peak the seasons which are early January, June through August, October, and December. But overall, Airbnb Gatlinburg is a popular vacation destination almost all year round.
For real estate investors, string tourism translates to strong demand for short-term rentals. This, in turn, assures them that their Gatlinburg investment property will not go unoccupied if rented out on Airbnb. Having a high Airbnb occupancy rate also means that hosts can expect to earn good Airbnb rental income as well. As a result, if you know how to manage your expenses, you’ll enjoy positive cash flow when you invest in Airbnb Gatlinburg in 2020. Want to start looking for the best Gatlinburg houses for sale and analyzing their potential Airbnb profit margin and ROI? Mashvisor has all the tools you need to start and finish your search in a matter of minutes.
#3 Airbnb Gatlinburg Investment Performance
The best way to understand the performance of a vacation rental market is by checking real estate data. At the end of the day, success in this industry is all about the numbers. So if you’re looking for more reasons to invest in Airbnb Gatlinburg, just take a look at the data provided by Mashvisor. Using the Airbnb Profitability Calculator, Mashvisor can estimate the performance of entire markets and rental properties available there. In addition, Mashvisor’s Airbnb data are accurate and reliable as they come directly from Airbnb.com and indicate the performance of actual Airbnb listings.
Then, we use Airbnb analytics to compare the performance of traditional and Airbnb rental properties in that market to identify the optimal rental strategy. Therefore, investors don’t need to waste time running a Gatlinburg real estate market analysis. Mashvisor will quickly find all the necessary numbers required to invest smartly and make the right decisions. You can learn more about our Airbnb calculator and Mashvisor’s other tools by clicking here. So, let’s take a look at the key data for the Gatlinburg housing market in 2020:
- Median Property Price: $409,084
- Price per Square Foot: $232
- Airbnb Average Daily Rate: $179
- Monthly Airbnb Rental Income: $3,003
- Monthly Traditional Rental Income: $1,003
- Airbnb Cash on Cash Return: 4.2%
- Traditional Cash on Cash Return: 0.12%
- Airbnb Occupancy Rate: 61%
Related: Where to Find Airbnb Data in 2020 for Real Estate Investing?
As Gatlinburg, TN is a popular tourist destination, it makes sense to see that an Airbnb investment property will perform better than a traditional rental here. However, these are only city averages. Meaning, you can find Airbnb Gatlinburg properties for sale with cheaper prices and an even higher return on investment. For example, here are top-performing Gatlinburg houses for sale that we’ve located using Mashvisor’s Property Finder along with their short-term rental data:
Investment Property #1
- Listing Price: $99,900
- Price per Square Foot: $143
- Monthly Airbnb Rental Income: $2,679
- Airbnb Cash on Cash Return: 16.8%
- Airbnb Occupancy Rate: 56%
Investment Property #2
- Listing Price: $130,000
- Price per Square Foot: $143
- Monthly Airbnb Rental Income: 3,274
- Airbnb Cash on Cash Return: 16.3%
- Airbnb Occupancy Rate: 52%
Sign up for a free Mashvisor account to use our Property Finder to find lucrative rental properties that match your criteria in a matter of minutes!
Finding the Best Gatlinburg Airbnb Rental Property
According to Mashvisor’s data, there are currently 161 houses for sale in Gatlinburg. How can you, as a real estate investor, identify which property will generate profits as an Airbnb investment? In addition, how can you find the best neighborhoods to invest in Gatlinburg real estate? We know that this can be tricky, which is why we provide investors with the best search tools. Here are Mashvisor’s tools that you need to find the best Airbnb Gatlinburg rental properties:
- Real Estate Heatmap: this tool will run a neighborhood analysis for the area based on the following metrics – listing price, Airbnb rental income, Airbnb occupancy rate, and Airbnb cash on cash return. Top-performing areas will be highlighted in green and the lowest-performing areas in red. In turn, this allows you to easily locate the best neighborhoods in Gatlinburg for buying and owning vacation rentals based on the metric of your choice.
- Property Finder: as you’ve seen earlier in this blog, we’ve used this tool to find the top-performing Airbnb rental properties for sale. To find more Gatlinburg houses for sale with great investment potential, all you’ve got to do is set the rental strategy and other filters (your budget, property type of choice, and the number of bedroom & bathrooms). You will automatically have a list of properties that match your criteria and have high returns.
- Airbnb Profit Calculator: click on any property listing that interests you, and you’ll access this ultimate tool for real estate investors. It provides you with a readily available Airbnb investment analysis including all the data you need to make smart decisions. This allows you to quickly compare the performance of different Airbnb Gatlinburg rentals and pick the one that best suits your needs.
For more details, read: Buying Airbnb Property in 2020? Then You Need These 3 Tools.
The Bottom Line
Airbnb Gatlinburg, TN has been gaining some momentum for years now, and it doesn’t seem to be slowing down any time soon. After reading the reasons why Gatlinburg is one of the best places to buy a vacation rental property and seeing the impressive data about the market’s performance, it’s a no-brainer why many want to invest in Airbnb Gatlinburg in 2020. If you too have come to the realization that it’s smart to invest in Gatlinburg real estate, Mashvisor will help you in your search for the best Airbnb rental property.