With more investors venturing into real estate these days, the business’s profitability is steadily rising. The real estate business has quickly secured a place among the world’s most lucrative companies, and many savvy investors are keying into this boom.
In 2020, the NAR indicated that over 822,000 newly constructed homes were sold in the US. This figure was obtained from the U.S. Census Bureau. Additionally, ARELLO estimates that the active real estate licensees in the US currently exceed 3 million. These data suggest that the key to wealth lies in real estate.
Real estate properties are almost evenly distributed across the United States. However, if you’re considering entering the business, then Smoky Mountain is the ideal place for you. There are several favorable real estate properties for rent or sale in this region. You may begin with the short-term rentals in the Smoky Mountains.
The Great Smoky Mountains are regarded as a UNESCO World Heritage Site. Thus, several benefits come with buying or renting properties in the the area. Gatlinburg, Tennessee, tops our list as a favorable location for short-term rentals.
We’ve stated some benefits you could attain from a short-term rental in the Smoky Mountains. This guide will explain why you should own a short-term rental property in Gatlinburg, TN.
Are you interested in owning real estate property? If yes, then check out these STS: short term rentals in Smoky Mountain.
5 Reasons to Own a Short Term Rental in Gatlinburg, TN
The Smoky Mountains have quickly become a favorite spot for short-term rentals due to the tremendous surge of vacationers in the area. Hence, the reason for the newfound interest in the region.
The following benefits could be derived from a short-term rental in Gatlinburg, Tennessee:
1. Immense Profitability
Generally speaking, real estate investment is highly profitable. In this light, owning short-term rental properties pose attractive profits. Statistics have shown that short-term rentals are more beneficial than long-term rentals.
The fees paid for short-term rentals could be twice or thrice their long-term counterparts. A long-term rental property may cost $3.6 million for a five years duration. That same property could be rented for as much as $5000 to $ 10,000 a month. Once calculated, you’d realize that a short-term rental is substantially more lucrative.
Again, the short-term rentals in Gatlinburg, TN, typically attract relatively high rental fees. The expenses paid for rent in this city are favorable to the property owner. Thus, it’s reasonable to own a short-term rental property in Gatlinburg, TN.
2. Flexibility
As the owner of a short-term rental, you could derive an advantage from flexibility. The costs renters pay for a short-term rental follow several economic trends.
The property owner makes every decision. Due to inflation, the owner may have to increase the rental fee. Since the economy constantly changes, this tendency could affect the rental price to the owner’s benefit.
Again, the property owner could adjust the rental rates based on the season and property type. The city demands could also enable you to increase the rental fee. There are specific Gatlinburg short-term rental laws a short-term rental investor could use to their advantage. For instance, a change in sales tax or a business license renewal could boost the rental fee considerably.
As a short-term rental investor, you may also set a minimum-night stay for higher demanded dates. The best dates for this profitable action are the weekends, holidays, and special events. You could also black-out dates for homeowners who wish to have entry to the property periodically. Long-term rental investors may not be able to utilize these opportunities.
3. Attractiveness to Renters
One primary reason to invest in short-term rentals in the Smoky Mountains is the location’s attractiveness. Typically, properties in a good area captivate several potential renters.
Indeed, the region possesses various tourist attractions. For example, the Great Smoky Mountains National Park is the most visited national park in the US. Smoky Mountain attracts numerous tourists every year who may be encouraged to rent a property. Since millions of people visit the region yearly, certainly, renters will always be in surplus.
Similarly, tourism is the key to Smoky Mountain’s economy. A town with tourist attractions usually costs more to rent. Hence, it’s a rational idea to invest in short-term rentals in the region. Subsequently, you’d earn tremendous profits from your investments in no time.
4. Relatively Lower Likelihood That Properties Will Wear and Tear
This opinion may be shocking to some people. Nonetheless, it happens to be a proven fact. It’s easier for property owners to deal with minor repairs when renters arrive and depart often. This opportunity will prevent massive damages from occurring.
Similarly, you could employ a cleaning crew to be in the unit frequently. This action will make it more convenient to monitor things and handle possible issues.
You may not be able to guarantee that the renters will use your property with caution. Nevertheless, short-term rentals enable you to have more control over cleaning, preventative maintenance, and damage alleviation.
There are short-term rentals for sale in Gatlinburg, TN. Ensure you enjoy this great benefit by purchasing a short-term rental property.
5. Rental Arbitrage
Rental arbitrage involves the act of renting long-term properties and listing them on short-term rental platforms like STS. Several benefits could be derived from this practice.
By obliging to the lease duration, you assume the owner’s vacancy risk. Still, you’ll be able to charge a higher daily rate and earn remarkable profits.
With rental arbitrage, it isn’t necessary to save millions of dollars to acquire short-term rentals. This alternative permits almost anybody to invest in short-term rentals and generate income for themselves.
Conclusion
From the benefits listed above, it’s advisable to invest in short-term rentals in the Smoky Mountains. You can expect to enjoy wealth from the real estate business. So, don’t waste this excellent opportunity.
We can assist you in becoming a proud short-term rental owner. At The Short Term Shop, we’re a team of reliable realtors that help our clients secure ideal properties. Contact us today for your real estate needs.