Data is important when it comes to real estate investing, especially when investing in Airbnb and short term rental properties. Clients often ask us for the previous short term rental income on a subject property, and rightfully so, they want to ensure that they are making a wise investment, and that the property has performed well in the past. It's historically been pretty difficult to get accurate Pigeon Forge rental income from the local property management companies for a number of reasons:
1. Most of the big local rental companies do not utilize the major booking platforms like Airbnb, VRBO, etc. They rely solely on direct bookings through their respective websites. With over 150 million users on Airbnb alone, that's a lot of tourist traffic to miss out on. Due to the lack of advertising on today's most relevant booking platforms, their rental income numbers are typically significantly lower than they would be if the property had been posted on all the most up to date platforms.
2. Many of the local companies do not keep records on occupancy rate, or month over month data. It's very typical for them to only supply us with vague annual numbers, with no insight into seasonality or overall occupancy rate.
3. Most listings will not have monthly expense data to supplement the income numbers that are being shared. If you need a sample proforma to help with analyzing the below Pigeon Forge rental income gross numbers, check out our sample proformas.
The above short term rental income data is a scrape from all properties listed on Airbnb and VRBO in 2018. The Pigeon Forge city limits represent a very small geographical section of the area where rental income is highest. About 80% of profitable rentals are outside the Gatlinburg and Pigeon Forge city limits. As long as the property is within a 20 minute drive time of either the Gatlinburg City limits, or the Pigeon Forge city limits, then it's in prime rental income location. Most properties outside the Pigeon Forge and Gatlinburg city limits will have a Sevierville address. We have rental income data for the Gatlinburg city limits here, and outside Gatlinburg/Pigeon Forge city limits here.
It's also always a great idea to drill down and look at the listings of your potential neighbors on Airbnb!
Short term rental income data provided by our friends at Airdna!