Real estate investors buy homes for a variety of different reasons: appreciation of home value, potential opportunity to generate income, and flipping homes for a quick profit. One sector of the investing market that is steadily growing is the vacation rental industry. These homes are quick ways to gain monthly rental value along with appreciating in value as the years go by. If you are on the fence on buying a vacation rental in Gatlinburg, here are some of the top reasons why investing in one is a great idea.
Dual Purpose Investing
Unlike many investment opportunities, a vacation rental in Gatlinburg does double duty. Owners are free to rent out the home on a daily, weekly, or monthly basis and then use the home when they want to get away from the hustle of everyday life. You can make money from the home and then use it as a vacation spot for yourself. The location and climate are up to you, so owners frequently purchase a home where they would want to vacation.
Gatlinburg Rental Property Generates Consistent Income
Vacation homes bring in rent at a much higher rate than other types of properties. Since you are renting based on a desirable location and usually on a short-term basis, the overall rental price is far higher than traditional single-family home rentals on a yearly basis. Vacancies tend to be lower during busy seasons, but even while vacant during off-seasons owners can utilize the property themselves and still see a profit from relatively low usage. Owners can even pivot and offer a longer-term lease during the off seasons to ensure that the property stays viable.
Appreciation in Value
Vacation rentals are generally purchased in attractive locations that offer short-term guests the most convenient access to local amenities, so these properties are almost always a good investment. Many of these locations are fully built and landlocked locations where new homes, hotels, or resorts cannot be built to take away from your consistent business. These desirable locations will consistently drive up home prices and ensure your investment over the long term.
A Place to Retire
Many vacation rental owners will choose their Gatlinburg rental property based on where they want to eventually end up. This investment opportunity will allow them to see a bit of consistent extra money to help retirement with the added bonus of a built-in retirement plan. Owners either will convert their rental to their full-time home, or if their property has made enough money, buy another vacation home and continue to enjoy the passive income. Check out our property management if you want to turn your future property into a success!
Contact us today to discover your property’s true potential with our free evaluation!