All Forum Posts by: Collin Hays

Tax returns 

We manage a number of properties in the Smokies.  

We have seen instances where the addition of a pool table or hot tub adds $15K a year to a rental.  

Foosball is better than nothing, but a table style multicade would be a much better amenity.

Amenities DO impact your revenues.  A game table, hot tub, and WIFI are critical.  New stainless appliances are a big deal too. 

WOMEN pick the cabin, and they do so by looking at pictures!

The price is always “right” when the yield is sufficient to support the price.

A one bedroom cabin priced at $200K would be a terrible deal if the rents are only $10K a year.

But a one bedroom cabin priced at $400K could be a fantastic deal if the rents are $70K a year.

What determines a good deal in Sevier County isn’t the price of the property, but the yield.

While the Gatlinburg area has risen, ultimately it is all about the net yield.  I paid $275K for a 900 square foot cabin in Gatlinburg last summer.  That’s over $300 psf!

But the rent supports that price:  The gross rents were $34,000 from July through December.

The key is finding a management company in the area that isn’t rent-shifting.  This practice is killing homeowners.