Short term rental Agent

Member since 2024 · 8 posts · 1 vote

Hey BP community!
As I’ve been diving deeper into representing short-term rental buyers, one pattern I keep running into and hearing about from other agents. Is buyers getting excited early on, but then getting "cold feet" right before putting in an offer or during escrow.
For those of you who have been representing STR investors for a while:
What is the single biggest reason your buyers end up backing out or freezing up? How do you usually help them navigate through it (or do you just accept it as part of the business)?
Would love to hear stories or insights from the trenches!

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Karen CubberleyBusiness Member
Realtor · Sevierville, TN · Member since 2026 · 15 posts · 1 vote
1w
Great question!
This is something my colleague, Shelly Gillum, and I encounter when working with short-term rental investors here in the Smoky Mountains of East Tennessee.
In my experience, the biggest reason buyers get cold feet is uncertainty about the numbers and fear of making the wrong investment.
It's easy to get excited about owning a beautiful cabin in Gatlinburg or Pigeon Forge, especially when you're looking at projected rental income. But when it's time to write an offer, reality sets in. Buyers start questioning occupancy rates, operating expenses, financing, insurance, and whether the property will actually generate positive cash flow.
🏡 Here's how we approach it:
We believe in educating our buyers BEFORE they fall in love with a property.
✅ Review actual rental history when available, not just projections.
✅ Evaluate operating expenses, management fees, insurance, and maintenance.
✅ Discuss seasonality and realistic occupancy expectations.
✅ Verify STR regulations, permitting requirements, and potential restrictions.
✅ Make sure the investment aligns with their financial goals and risk tolerance.
One thing I always tell investors is, "It's not just about choosing the right property; it's also about avoiding the wrong one!"
And sometimes, walking away IS the right decision.
Our job isn't to convince someone to purchase a property they're uncomfortable with. It's to provide the information, guidance, and confidence they need to make an informed decision.
💬 I'm curious what other agents are experiencing. Are buyers getting cold feet because of the financial commitment itself, or because they don't fully understand the realities of operating an STR?
I think there's a big difference, and understanding that difference can help us become better advisors to our clients!
Karen Cubberley & Shelly Gillum
🏡 Smoky Mountain STR & Investment Specialists
Tennessee Elite Realty
✨ Knowledge • Service • Proven Results
Tennessee Elite Realty 58 Reviews
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Alex S.
Investor · Washington, US · Member since 2021 · 110 posts · 36 votes
1w
The thing that settles cold feet fastest in Gatlinburg/Pigeon Forge is swapping projections for actuals: pull trailing 12-month revenue for 8-10 truly comparable cabins (same bedroom count, same hot tub/theater/view tier, same drive time to the Parkway) and underwrite to the 25th percentile of that set, not the average. Then show the buyer what the payment looks like at that number with realistic 20-25% management plus 15-18% cleaning/supply/maintenance load, so they see the floor before they see the upside. Buyers who know their worst realistic case tend to sign; buyers shown only a pro forma keep stalling.
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