Pigeon Forge, Tennessee, is experiencing robust short-term rental performance, with properties averaging a 58% occupancy rate, a $318 daily rate, and a monthly revenue of $45,234, driven by high demand and a diverse range of family-friendly attractions.
Thriving Short-Term Rental Market in Pigeon Forge, Tennessee
Pigeon Forge, Tennessee, is experiencing a robust and promising short-term rental market. As of the latest data, short-term rentals in Pigeon Forge are averaging an occupancy rate of 58%, indicating a strong demand for vacation properties in the area.
The average daily rate for these rentals stands at $318, contributing to a significant monthly revenue of $45,234. This performance is bolstered by the area's attractive amenities and popular family-friendly destinations such as Dollywood and The Island in Pigeon Forge. Despite a slight year-to-date decline in occupancy rates, recent trends suggest a recovery and growth in the market, with May 2024 marking a significant turning point with an 11.4% increase in demand and a 3.1% rise in occupancy. This positive outlook makes Pigeon Forge an excellent choice for investors and property owners in the short-term rental sector.
Short-Term Rental Regulations in Pigeon Forge, Tennessee for 2024
General Definitions and Requirements
- Definition of Short-Term Rental: Rentals of residential units or dwellings for less than 30 consecutive days.
- Permit Types:
- Owner Occupied: The owner's principal residence used as a short-term rental, excluding duplexes. The owner does not need to be present during rentals.
- Non-Owner Occupied: Issued to an owner or a lessee of the property, with the lessee needing the owner's approval.
- Unoccupied: Premises occupied only when used as a short-term rental unit, held by the owner or an owner's agent.
Permit Application and Fees
- Application Requirements:
- Permit application
- Property address and information
- Owner's and applicant's contact details
- Local contact person's details
- Hosting platforms and websites
- Proof of ownership
- Proof of residency
- Site plan
- Copy of the city and county business license
- Completed Life Safety Compliance Verification Form.
- Permit Fee: $300, payable to the City of Pigeon Forge.
Safety and Compliance
- Life Safety Measures: Presence of smoke alarms, carbon monoxide detectors, and fire extinguishers.
- Annual Inspections: Short-term rental units outside city limits must undergo annual inspections.
Occupancy and Zoning
- Maximum Occupancy: Two guests per bed and two beds per room, for a total of no more than 12 persons per property.
- Zoning Restrictions: Residences in R-1 District can be used as short-term rentals only if they were operating as such on or before August 13, 2018.
Taxes and Licensing
- Hotel Occupancy Tax: 2.50%.
- Sales Tax: 9.75%.
- Business License: A copy of the city and county business license is required.
Additional Requirements
- Signage: Display of the operating permit number.
- Local Contact: Designation of a local contact person who can address issues within a reasonable time frame.
Permit Validity and Renewal
- Permit Validity: Permits are valid for one year and are non-transferable.
- Renewal: Permits must be renewed annually with updated information if necessary.
Top Airbnb Revenue-Generating Areas in Pigeon Forge, Tennessee
Why Pigeon Forge is Appealing for Guests
Pigeon Forge is a highly sought-after destination due to its proximity to the Great Smoky Mountains National Park, numerous family-friendly attractions, and a wide range of outdoor activities. Here are the key areas that generate significant Airbnb revenue:
Key Neighborhoods and Areas
1. Downtown Pigeon Forge
- Appeal: Central location with easy access to main attractions like the Parkway, Dollywood, and various restaurants and shops.
- Revenue Potential: High demand due to its central location, with average daily rates around $202 and an annual revenue potential of $49,000.
2. Sevierville Road and Parkway Area
- Appeal: Close to major attractions such as Dollywood, Dolly Parton's Stampede, and the Island at Pigeon Forge.
- Revenue Potential: High occupancy rates and daily rates, contributing to the overall high revenue in the area.
3. Jones Branch and Middle Creek Road Area
- Appeal: Offers a mix of residential and vacation rental properties, with easy access to outdoor activities and scenic views.
- Revenue Potential: Consistent demand throughout the year, with a median occupancy rate of 64% and average daily rates of $202.
4. Wears Valley Road and Waldens Creek Road Area
- Appeal: Known for its scenic beauty, proximity to the Great Smoky Mountains National Park, and a variety of outdoor activities.
- Revenue Potential: Attracts nature lovers and families, ensuring a steady stream of bookings and high revenue potential.
5. Teaster Lane and McCarter Hollow Road Area
- Appeal: Offers a quieter, more residential atmosphere while still being close to main attractions.
- Revenue Potential: Benefits from the overall high demand in Pigeon Forge, with lenient short-term rental regulations contributing to its profitability.
General Appeal of Pigeon Forge
- High Occupancy Rates: A median occupancy rate of 64% ensures consistent bookings throughout the year.
- Lenient Regulations: Minimal enforcement of short-term rental regulations makes it easier for hosts to operate.
- Seasonal Demand: Peak months like July and August see high daily rates and revenue, while the area remains attractive during other seasons due to its diverse attractions and activities.
Discover the Best of Pigeon Forge: Local Attractions and Insider Tips
Local Attractions
Family-Friendly Fun
- Dollywood: Enjoy award-winning coasters, live music, and Southern charm at Dolly Parton's theme park.
- The Island in Pigeon Forge: A 23-acre entertainment complex featuring the Great Smoky Mountain Wheel, a ropes course, and various rides like the Spinning Parrots Coaster and Dance Party 360.
- WonderWorks: A science-focused indoor amusement park with over 100 interactive exhibits.
Unique Experiences
- Titanic Museum Attraction: Explore artifacts and stories of the RMS Titanic, including a new multimillion-dollar movie exhibit.
- MagiQuest: Engage in a magical adventure with interactive games and quests.
- The Escape Game: Challenge yourself to escape themed rooms at The Island in Pigeon Forge.
Outdoor Adventures
- Great Smoky Mountains National Park: Just a short drive away, offering hiking, wildlife viewing, and scenic beauty.
- The Ripken Experience® Pigeon Forge: A baseball complex for kids and adults to enjoy big league experiences.
- TopJump Trampoline & Extreme Arena: A trampoline park with extreme activities like dodgeball and a ninja course.
Shows and Entertainment
- Dolly Parton’s Stampede: A dinner show featuring horse riding, music, and comedy.
- Country Tonite Theatre: Celebrate country music with a show that has been running for over 25 years.
- The Magic of Terry Evanswood: The Smokies' most attended and longest-running magic and illusion show.
Shopping and Dining
- Lumberjack Square: A shopping and dining destination with a rustic theme.
- The Forge Cinemas: A convenient movie theater located in the heart of Pigeon Forge.
- Arcade City at The Island: A large video arcade with a variety of games.
Insider Tips
Getting Around
- Use the Pigeon Forge Trolley: A convenient way to travel around town without worrying about parking.
Best Times to Visit
- Avoid Peak Season: If possible, visit during the off-season to avoid crowds and long wait times.
- Check Event Calendars: The Island in Pigeon Forge and other attractions often have special events and fireworks displays throughout the year.
Local Favorites
- Tennessee Shine Company: Sample local moonshine and enjoy live bluegrass music.
- Ole Smoky Moonshine: Another popular spot for moonshine tasting and live music.
Dining Tips
- Try Local Cuisine: Enjoy Southern favorites like barbecue, fried chicken, and sweet tea at local restaurants.
- Dine Early or Late: Avoid dining during peak hours to minimize wait times.
Additional Tips
- Book Attractions in Advance: Many attractions, especially popular ones like the Titanic Museum, can sell out quickly. Book tickets online in advance.
- Take Breaks: With so many activities, it's easy to get overwhelmed. Take breaks to rest and recharge.
By providing these recommendations and tips, you can help your Airbnb guests make the most of their visit to Pigeon Forge, Tennessee.
Practical Tips to Run a Successful Short Term Rental Business in Pigeon Forge, Tennessee
To ensure a smooth and profitable short term rental business in Pigeon Forge, Tennessee, several key practices can make a significant difference. Here are some practical tips:
Noise Regulations and Guest Communication
Inform your guests about the quiet hours and noise regulations in Pigeon Forge to avoid any potential issues with neighbors. Include this information in both your digital and physical house manual to ensure clarity.
Comprehensive House Manual
Create a detailed digital and physical house manual that includes essential instructions, Wi-Fi passwords, and other important details about the property. This manual should be easily accessible to guests, either through a welcome packet or a digital link provided upon check-in.
Simplified Check-in Process
Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. This not only enhances guest convenience but also reduces the administrative burden on property managers.
Clear Parking Instructions
Provide clear parking instructions, accompanied by photos, to help guests navigate the property's parking facilities. This can prevent confusion and ensure that guests park in the correct areas, respecting any local regulations and neighbor considerations.
By implementing these strategies, you can enhance the guest experience, reduce potential conflicts, and maintain a well-organized and compliant short term rental business in Pigeon Forge.
Here is a brief list of house cleaning, repair, and maintenance providers in Pigeon Forge, Tennessee:
Cleaning Services
- Maids in the Smokies: Offers residential, commercial, and rental cleaning services in Pigeon Forge, Gatlinburg, and surrounding areas. They provide services such as dusting, mopping, wall and window cleaning.
- Moonshine Cleaners: Specializes in cabin rental cleaning and is locally owned and operated since 2000. They are licensed, bonded, and provide full-service cleaning solutions.
- Mountaineer Cleaning & Maintenance: Provides comprehensive services including cleaning, laundry, maintenance, landscaping, and hot tub maintenance for rental cabins in Pigeon Forge, Gatlinburg, and other Smoky Mountain areas.
Additional Resources
- Turno: A marketplace that connects property owners with vetted vacation rental cleaners in Pigeon Forge and other locations.
General House Cleaning
- Care.com: Lists various house cleaning services in Pigeon Forge, allowing users to search by rates, reviews, and experience.
Short-Term Rental Management Fees in Pigeon Forge, Tennessee
In Pigeon Forge, Tennessee, short-term rental management fees can vary significantly, typically ranging from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management companies, which handle comprehensive tasks such as guest communication, marketing, and maintenance, generally charge higher fees, often in the 20-30% range.
In contrast, basic or half-service management, where the owner handles some of the responsibilities like cleaning and property maintenance, may incur lower fees, starting at around 10% of the rental income.
Additionally, property owners may need to account for extra fees for services like cleaning, repairs, or design and furnishing, which can be billed separately or included in the overall management fee structure.