To say 2020 brought many unexpected changes is an understatement. However, as we enter 2021, we have a great deal of positive momentum.
The “Great Smoky Mountain Vacation Runaway” would be a great title for 2020! We became the destination of choice! Once we were past the late spring COVID-19 lockdown, the race to the Smokies was on. We think the combination of cooped-up parents with kids being schooled virtually and the opportunity to at least Social Distance if not outright quarantine in a cabin full of entertainment enticed people to the area. Truthfully, it was a perfect choice!
Because of this, rental records were broken across the board. Even though they were missing perhaps a month or two because of COVID cancelations, most cabins outperformed any previous year. To our surprise, many of our guests were first-timers to our area. These first-time guests routinely reported they fell in love with the area and promised to return! This is good news for future rental revenues for cabins.
These new guests shared that previously they were on a cruise or were flying to Hawaii, Florida or Mexico coasts, Disney theme parks, or one of the other National Parks.
The wild, free and conservative State of Tennessee has become very popular across the nation for relocating and also investing. We continue this year to be in the top five for moving trucks traveling to our area and we were also picked for investors as a great place to place their investment money, particularly for short-term rentals. In the top five was Gatlinburg, Pigeon Forge and Sevierville, that kind of was a complete run!
What does this mean for you? If you have an older cabin, there is not a better time to sell it. The value of cabins is at an all-time high. Inventory is still down. If you are able, take the proceeds and build or buy new construction. New construction is still not at top value, and you have the advantage that you are getting a newer, latest and greatest floor plan, new furniture, new appliances, and a cabin with very little maintenance for the next three to five years. You are also obtaining a cabin that will outperform the older floor plans and older amenities.
If you are a new investor, it is time to put your toe in the water.
Feel free to call us to get a sense of your cabin’s value and whether new construction is possible for you. Alternatively, email us and ask for the latest report on “What Makes a Profitable Cabin.”