Gatlinburg, Tennessee, is experiencing a strong recovery in its short-term rental market, with increasing demand, high occupancy rates averaging around 70%, and a promising outlook for the remainder of 2024 driven by its year-round tourism and appealing natural attractions.
Thriving Short-Term Rental Market in Gatlinburg, Tennessee: A Promising Outlook for 2024
Gatlinburg, Tennessee, is experiencing a robust and resilient short-term rental market in 2024, driven by its enduring appeal to tourists. The city, serving as a gateway to the Great Smoky Mountains National Park, boasts high occupancy rates throughout the year, averaging around 70%.
Despite a slight year-to-date decline in occupancy rates nationally, Gatlinburg's performance is on the upswing, with May seeing a significant 3.1% increase in occupancy, indicating a strong recovery and growth in the short-term rental market. The average daily rate (ADR) for rentals, although growing at a slower pace due to inflation, remains favorable, contributing to a positive economic outlook for rental owners. With its natural beauty, year-round tourism, and high-demand events, Gatlinburg continues to be an attractive and profitable destination for short-term rental investments.
Short-Term Rental Regulations in Gatlinburg, Tennessee for 2024
General Requirements
- Business License and Taxes: Property owners must obtain a business license and adhere to a combined sales tax rate of 9.5% (7% for Tennessee and 2.5% for Sevier County).
Permitting
- Short Term Rental Unit Permit: Property owners must apply for a Short Term Rental Unit Permit by June 30, 2024. The permit cost is $250 for units sleeping 12 or less, and an additional $25 per occupant for units sleeping more than 12.
Safety and Inspections
- Annual Fire/Safety Inspections: All short-term rentals within Gatlinburg city limits must undergo annual fire and safety inspections.
- Sprinkler System Requirements: Properties built after February 1, 2016, that are more than 3 stories, more than 5,000 square feet, or sleep 13 or more people must install a sprinkler system. Exemptions may apply if the property meets specific conditions and applies for a permit between January 1, 2024, and June 30, 2024.
Occupancy and Zoning
- Occupancy Limits: The occupancy will be stated during the application and verified during inspections to ensure compliance with the claimed sleeping capacity.
- Zoning Restrictions: While generally relaxed, property owners must abide by several zoning restrictions. There are no limitations on the number of vacation rental properties one can own.
Compliance and Enforcement
- Compliance with State and Local Regulations: Properties must comply with all state and local safety regulations, tax requirements, and other applicable laws.
- Penalties for Non-Compliance: Violations can result in fines and other penalties, including the potential loss of the permit.
Additional Requirements
- Local Contact Person: Property owners must designate a local contact person who is reasonably available to handle any issues and can appear on the property within 2 hours of notification.
Top Neighborhoods Generating Airbnb Revenue in Gatlinburg, Tennessee
1. Downtown Gatlinburg
- Appeal: Downtown Gatlinburg is highly appealing due to its proximity to numerous attractions, restaurants, shops, and the Convention Center. Guests can walk to many popular spots or use the community dedicated walkway and trolley services.
- Amenities: Many rentals in this area offer amenities like free parking, indoor and outdoor pools, hot tubs, and easy access to the Great Smoky Mountain National Park.
2. Chalet Village
- Appeal: Chalet Village is favored for its quiet, wooded settings while still being close to downtown Gatlinburg. Guests enjoy the rustic themed settings and the convenience of being within a few miles of all major attractions in Gatlinburg and Pigeon Forge.
- Amenities: Rentals here often include hot tubs, jetted Jacuzzi tubs, and fully equipped kitchens, making them ideal for both couples and families.
3. Ski Mountain
- Appeal: Located just a few minutes from downtown Gatlinburg, Ski Mountain offers a mix of tranquility and accessibility. Guests love the spacious great rooms, gas log fireplaces, and wrap-around decks with hot tubs.
- Amenities: These rentals typically feature game areas, pool tables, and cedar saunas, making them perfect for families and groups.
4. Gatlinburg Summit
- Appeal: The Gatlinburg Summit area is renowned for its breathtaking Smoky Mountain views. Guests are drawn to the modern, newly remodeled condos with private balconies and wood-burning fireplaces.
- Amenities: Amenities include indoor and outdoor pools, hot tubs, clubhouses, playgrounds, and picnic areas, making it an attractive option for families and couples alike.
5. Mountain Shadows Resort
- Appeal: This area is popular for its secluded yet convenient location, only 10 minutes from downtown Gatlinburg. Guests appreciate the charming cabins and the feeling of seclusion in the mountains.
- Amenities: Rentals here often include outdoor hot tubs, fully equipped kitchens, and cozy decorations, ideal for couples looking for a romantic getaway.
6. Near the Great Smoky Mountain National Park
- Appeal: Neighborhoods close to the Great Smoky Mountain National Park are appealing for nature lovers. Guests enjoy the proximity to hiking trails, creeks, and the serene natural environment.
- Amenities: These rentals often feature private back patios, hot tubs near rushing creeks, and easy access to park entrances, providing a peaceful and natural retreat.
Creating an Inviting Airbnb in Gatlinburg: Design and Furnishing Tips
Nature-Inspired Retreat
- Incorporate Wood Accents: Use rustic wood accents such as reclaimed wood furniture, exposed wooden beams, and log-style bedframes to bring the natural beauty of the Smoky Mountains indoors.
- Earthy Color Palettes: Choose earthy tones like shades of green, brown, and gray to create a serene and natural atmosphere.
- Nature-Inspired Decor: Adorn your cabin with nature-inspired decor, including botanical prints, wildlife-themed artwork, and cozy faux fur throws.
Family-Friendly Haven
- Open Floor Plan: Opt for an open floor plan that connects the living area, kitchen, and dining space to encourage family bonding.
- Game Room: Add a game room with pool tables, foosball, or arcade games to provide entertainment and bonding opportunities.
- Bunk Beds: Include bunk beds for a fun and practical sleeping arrangement for kids.
Romantic Getaway
- Hot Tub with a View: Install a private hot tub on the deck with a scenic view of the mountains for relaxation and stargazing.
- Cozy Fireplace: Incorporate a fireplace to create a warm and romantic ambiance.
- Romantic Dining: Arrange the dining table to create a romantic dining experience.
Modern Mountain Elegance
- Sleek Furniture: Use contemporary furniture with clean lines and neutral colors, balanced with rustic accents.
- Stainless Steel Appliances: Upgrade the kitchen with stainless steel appliances for a sleek and polished look.
- Minimalist Decor: Keep decor simple and uncluttered, with a few statement pieces like bold artwork or designer light fixtures.
General Design Tips
- Optimize Layout and Scale: Ensure furniture is the correct size for the space and optimize the layout to accommodate all guests comfortably.
- Mix Natural and Artificial Elements: Combine natural elements like plants with artificial elements to create a balanced and inviting space.
- Tell a Story: Use local artifacts, vintage pieces, and artwork that reflect the history and culture of the surrounding area to add character and emotional resonance.
Outdoor Spaces
- Functional Outdoor Areas: Create functional outdoor spaces with outdoor rugs, sitting hammocks, and designated areas for relaxing and enjoying the view.
- Practical Amenities: Provide spots for guests to sit, remove dirty hiking boots, and hang up wet ski clothes to keep the interior clean.
Luxury Touches
- Attention to Detail: Focus on attention to detail to create a luxury experience, including lighting control, soft blankets, and comfortable pillows.
- Inviting Entryway: Design an entryway that makes guests feel welcome and special, with thoughtful touches like welcoming messages and amenities.
- Well-Equipped Kitchen: Ensure the kitchen is well-equipped and updated to add value to the rental and facilitate family bonding.
Discover Gatlinburg: Top Attractions and Insider Tips for Your Visit
Local Attractions
Outdoor Adventures
- Ober Mountain Ski Area & Adventure Park: Enjoy year-round activities including skiing, an aerial tramway, and scenic chairlift rides with breathtaking views of the Smoky Mountains.
- Gatlinburg SkyPark: Ride the iconic yellow SkyLift chairs to the mountaintop and explore the longest pedestrian suspension bridge in North America, the Gatlinburg SkyBridge.
- Anakeesta: Soar to the top of Anakeesta Mountain on a one-of-a-kind Chondola and experience a mountaintop adventure with stunning views.
- Whitewater Rafting: Choose from Smoky Mountain Outdoors or NOC Nantahala Outdoor Center for guided whitewater rafting trips that are fun for the whole family.
Family-Friendly Fun
- Ripley’s Aquarium of the Smokies: Marvel at sharks, sea turtles, and thousands of exotic sea creatures in state-of-the-art underwater tunnels.
- Ripley’s Haunted Adventure: Experience a spine-chilling haunted house with live actors and cutting-edge special effects.
- Hillbilly Golf: Enjoy two 18-hole miniature golf courses with unique mountaineer hazards and an incline rail car ride to the mountaintop.
- Circus Golf: Play an 18-hole mini-golf course in blacklight 3D, combining circus funhouse elements with mini-golf.
Museums and Unique Attractions
- Ripley’s Believe It or Not: Explore the weirdest and most remarkable items from around the world in this newly revamped attraction.
- Hollywood Star Cars Museum: View the world’s best collection of star cars from Hollywood movies, TV, and music.
- Salt and Pepper Shaker Museum: Discover over 20,000 sets of salt and pepper shakers from around the world.
Shopping and Dining
- The Village Shops: A picturesque collection of 27 unique boutiques and eateries set in a quaint, European-inspired village.
- Great Smoky Arts and Crafts Community: Explore handmade crafts, live demonstrations, and workshops along a scenic 8-mile loop.
- Slice Pizza Bakery: Enjoy authentic New York Style pizza and Italian cuisine in the heart of Gatlinburg.
Insider Tips
Getting Around
- Parkway Stroll: Take a walk along the infamous Parkway to discover numerous attractions, shops, and dining options within a short distance.
Seasonal Events
- Gatlinburg Craftsmen’s Fair: Visit in July or October to experience over 200 booths featuring arts, crafts, and music at the Gatlinburg Convention Center.
Hidden Gems
- Arcadia: A lively arcade and family fun center in downtown Gatlinburg featuring both classic and modern games.
- Iris Theater: Catch a show or performance in the heart of Downtown Gatlinburg for a unique entertainment experience.
Nature and Scenic Views
- Gatlinburg Space Needle: Ride the glass elevators to the observation deck for a 360-degree view of the Great Smoky Mountains and Gatlinburg.
- A Walk in the Woods: Enjoy a peaceful encounter with nature through guided walks and unique adventures.
By sharing these attractions and insider tips, you can help your Airbnb guests make the most of their visit to Gatlinburg, Tennessee.
Practical Tips to Run a Successful Short Term Rental Business in Gatlinburg, Tennessee
To ensure a smooth and successful short term rental business in Gatlinburg, Tennessee, several practical tips can be implemented:
Noise Regulations and Guest Communication
Inform your guests about quiet hours and noise regulations to maintain a peaceful environment for both your guests and neighboring residents. Clearly outline these rules in your house manual and during the check-in process to avoid any misunderstandings.
Comprehensive House Manual
Create both digital and physical house manuals that include essential instructions, such as Wi-Fi passwords, appliance usage, and emergency contact information. This manual should also cover important local regulations, including those related to safety inspections and zoning laws specific to Gatlinburg.
Simplified Check-in Process
Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide guests with detailed instructions on how to access the property, along with photos of the entrance and any specific steps they need to follow.
Parking Instructions
Ensure that parking instructions are clear and accompanied by photos to help guests navigate the property easily. This can include designated parking spots, any parking restrictions, and alternative parking options if necessary.
By implementing these strategies, you can enhance the guest experience, reduce potential issues, and maintain compliance with local regulations, ultimately contributing to a successful and profitable short term rental business in Gatlinburg.
Here is a brief list of house cleaning, repair, and maintenance providers in Gatlinburg, Tennessee:
House Cleaning and Maintenance Providers in Gatlinburg, TN
Mountaineer Cleaning & Maintenance
- Offers cleaning, laundry, maintenance, landscaping, and hot tub services for rental cabins in Gatlinburg, Sevierville, Pigeon Forge, Wears Valley, and Pittman Center.
1 Clean Place
- Provides professional VRBO cleaning services for cabins in Pigeon Forge and the Greater Gatlinburg area.
Turno Airbnb Cleaners
- Specializes in vacation rental Airbnb cleaning in Gatlinburg, with features like auto-scheduling, digital checklists, and photo documentation.
Various House Cleaning Services Listed on Angie's List
- A list of top-rated house cleaners in Gatlinburg, TN, with real reviews and ratings.
Various House Cleaning Services Listed on Care.com
- Offers a list of affordable house cleaning services in Gatlinburg, TN, with options starting at $10.00/hr.
Short-Term Rental Management Fees in Gatlinburg, Tennessee: A Guide to Costs and Services
In Gatlinburg, Tennessee, short-term rental management fees typically range from 10% to 30% of the rental revenue, varying significantly based on the level of service provided. Full-service management, which includes comprehensive tasks such as guest communication, marketing, and maintenance, tends to be on the higher end of this spectrum, often ranging between 20% to 30% of the revenue. In contrast, basic services that may involve fewer responsibilities can be more affordable, starting at around 10%. Additionally, property owners may incur extra fees for services like cleaning, repairs, and design enhancements. Companies such as Grand Welcome of the Smoky Mountains and GoSummer offer tailored management solutions, with fees calculated based on the specific needs and performance of the property.