All Forum Posts by: Matt Mertz

There are PMS software that will host direct booking sites as part of their service.  We use OwnerRez.

You can also go with a fully custom provider like Boostly but I'd recommend piggy backing on your PMS to get a "free" website so you can get a feel for it first.  Boostly says they can get you to 65% direct booking but it costs 5k - 6k plus $95/mo.  Get your feet wet before you jump into that.

Quote from @Jason Hoekstra:

I just finished a 1 bedroom build 866 sq ft in Chalet Village on a one acre lot with long range views.  I have a 6 bedroom septic installed on the lot and in the future will add an additional cabin.  I have 3  2 bedroom cabins in Pigeon Forge with nothing special about them except great location. I wanted to try something close to the park with exceptional views to stand out.

 Does your new cabin sleep 2 or 4?  What led you to decide on the size and occupant number?

Quote from @Ken Boone:

I use Stan Inman with Southpoint Risk out of Knoxville, TN

 Me too!  Good people and good company.

@Kyle Smith

We're in the same boat.  Been sitting on a lot in Gatlinburg near downtown since 2022.  We're focusing on a small cabin for honeymooners.  Went through 2 iterations of our plan with an architect only to discover it cost too much to build.

Earlier this year we looked into a container home only to be shot down by the zoning commission.

Construction costs have come down since last year so now we're looking at a very small stick-built cabin.  Like you, we want to focus on standing out.

We're trying to figure out if we truly want to sleep 2 or make room for 4.  In any case, it will be 1 bedroom.

Keep us posted on what you decide.

Quote from @John Carbone:

I’m hearing from a lot of people that they have a bottom line number before they will just let it sit. If there are enough hold outs, new construction may become non existent and it may just be a few years of poorer performance. The long run will play out very well but it’s going to take some medicine to get to the other end.

Prior to the June cancellation, yes on the June and July 2023/2024 revenue.

May is the weird outlier.  Currently May 2024 is only 1/3 of last year.  Of course there's still time for some last minute bookings.

We use Pricelabs and haven't migrated to the new algorithm because it was pricing consistently lower than the original one.  I only mention this to demonstrate that, in our case, we didn't have to lower prices to get our expected bookings.  We're ok with riding it out for now and seeing what happens.  Of course we may be forced by the market to lower rent at some point.

I can share an anecdote concerning construction prices.  We've been trying to build a 1 bedroom in Gatlinburg since the beginning of 2023.  October 2023 our builder gave us a ridiculous construction estimate so we pulled the plug (basically all the trade work was as expensive for a 1 bedroom as our 4 bed we built in 2021).  Recently he asked us if he could reprice the construction with current prices.  He said the interest rates have been scaring off new construction so prices have been coming down.

I don't think new construction will ever stop but it is slowing down, which is good news for us.   Personally I don't know how people who entered this market with the high interest rates are making it.  There's going to be some weird churn in the Smokies market for a few years.

Quote from @John Carbone:

A few days ago it was looking pretty decent, but then we had a guest cancel a 7 night stay in June due to a medical emergency.

2024: June 26%, July 58%.

2023: June 70%, July 51%

We donated a 3 night weekend to Isaiah House for a fund raising raffle so I didn't include them in the June 2024 numbers.  And we gave a few nights to a friend in July 2023.

We're in this weird place where we were doing better this year than last until May rolled around.  We're not panicking or anything.  It's just "will we be able to retire early or not?"

Quote from @Jay Hinrichs:

if you can get one stay to pay your overhead.. thats what I would do. keeps the wear and tear down a lot.. if STR client pays your mortgage off thats great news..

Thanks... I agree.  However we're going to compare our prices this weekend against our competitors and adjust them a bit.  There is a floor we won't go under (for the reason previously mentioned).

Just chiming in.  We have a big cabin that sleeps 16.  We have 1 guest for May so far.  Very quiet right now.  Last year was light too.  16% occupancy this year vs. 38% in May last year.

We haven't adjusted our rates to race to the bottom because we're financially healthy.  That one stay has already covered our mortgage.  And we don't want to deal with the headache of attracting guests that will mess up the house.

The Great Smoky Mountains is the #1 destination of all national parks in the country.

It's (probably) the #1 spot investors have focused on for investing.  I would suggest you take a few months and watch the market before jumping in because the market has adjusted the pricing because it's hot.  Also there are a lot of investors entering this market which makes it more competitive.  More competition equals less income per cabin.

It's possible you can grab a cabin at a low price from someone who bought at the peak in 2022, Just do your homework and be sure you can make your ROI before you enter this market.

Quote from @Sam M.:

 We had the same idea and executed on it. Have a rental in the mountains. We use the rental ourselves too. The community has great UTV trails, so bought a Mule (not that expensive and built like a tank) to enjoy the trails. Rent the house and allow people to rent the UTV separately ($200-$350/day depending on season). have a very strong liability disclaimer and contract form. Need proof of insurance, deposit etc. etc. In my case, the UTV can only be driven within a community so that helps. Also, it is a tax deduction. Insurance was inexpensive and it does add something different to the rental experience. Just my $0.02

Do you keep it in a garage? 
If you don't mind me asking, what's your ROI on it?  It seems like they'd be able to pay for themselves very quickly.