When deciding to invest in short term rental property in the Great Smoky Mountains there are multiple factors to consider to make your property a success!
While hot tubs, game rooms, and a large sleeping capacity are appealing selling points, there is one factor that ranks higher than all the others– location.
Why Location Remains King in the Smokies
There’s a reason the classic real estate mantra “location, location, location” has endured for generations—it’s simply that important.
Properties within a 15-20 minute drive of major attractions like Dollywood, the Great Smoky Mountains National Park entrance, the main Parkway in Pigeon Forge, and downtown Gatlinburg command higher nightly rates and produce a higher occupancy rate.
Proximity to attractions provides guests with convenient access to the experiences that brought them to the mountains in the first place.
Properties located further away from these central points, generally need to compensate with standout amenities like views, outdoor spaces, or pool access to maintain competitive occupancy rates.
Privacy: A Growing Trend in Mountain Rentals
While proximity to attractions remains essential, the definition of an ideal location has evolved in recent years.
Privacy has become increasingly more important in our rental market.
Guests are looking for the best of both worlds – peaceful mountain views without being too far from restaurants, shopping, and entertainment options.
Properties that offer a sense of immersion in nature while remaining within a reasonable distance to attractions can command a premium in today’s market.
Amenities: What Makes Your Smoky Mountain Rental Stand Out
In areas where many properties share similar locations, amenities become critical differentiators that can set your rental apart from the competition.
However, we’ve found it’s important to view amenities as enhancements to a well-located property rather than compensation for a poor location.
Popular amenities that consistently deliver strong returns in our market include:
- Hot tubs (a near-essential feature for Smoky Mountain rentals)
- Game rooms with pool tables, arcade games, and entertainment systems
- Theater rooms for movie nights
- Stunning mountain views
- Outdoor living spaces with fire pits and grilling areas
- High-speed internet and smart home features
When considering which amenities to invest in, it’s important to evaluate the return on investment relative to your property’s location.
A property with a mediocre location might not see sufficient occupancy increases to justify expensive amenity additions, while a well-located property might benefit significantly from even modest amenity upgrades.
Sleeping Capacity: Finding Your Ideal Guest Mix
Larger properties with more bedrooms can command higher nightly rates but may experience lower occupancy during off-peak periods when smaller groups are traveling.
Things to think about when determining sleeping capacity for your investment property in the Smokies:
- Who is your target market?(families, couples, multi-family groups, etc.)
- What does that mean for the balance between occupancy rates and nightly rates?
- How might your property’s location attract different group sizes?
Properties closer to attractions often perform well with varied sleeping capacities, because their convenient location appeals to both small and large groups.
Properties in more remote locations sometimes benefit from higher sleeping capacities to attract larger groups looking for a private retreat experience.
Making the Smart Investment Decision in the Smoky Mountains
When searching for the perfect short-term rental investment in the Smokies, a location-first approach typically yields the best long-term results.
This means:
- Identify the best location you can afford within your budget
- Evaluate properties based on their proximity to major attractions
- Consider privacy and views as secondary location factors
- Assess amenities and sleeping capacity as ways to optimize a well-located property
The Bottom Line for Smoky Mountain Investors
While amenities and sleeping capacity are important factors that can enhance a property’s appeal and revenue potential, location remains the foundation of a successful short-term rental investment in our beautiful Smoky Mountains.
The ideal approach is to secure the best location possible within your budget, then optimize amenities and sleeping arrangements to maximize appeal to your target guests.
Remember this critical distinction that we share with all our clients: you can always add amenities to a property, but you can never change its location.
Start with the best location you can afford in the Smokies, and build your investment strategy from there.
If you are looking to begin your short term investment search in the Smokies we’d love to help you get started!
