Home Buying in Pigeon Forge>Question Details

April, Home Buyer in Tennessee

We're planning to buy a cabin to put on the rental market for may be 5 years or so and would like to retire

Asked by April, Tennessee Fri Aug 1, 2008

in TN, but many rental companies seem to take 50% of the profit, so how can we make profit that can help us to retire?

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april, I have worked at many rental companies here in town as a reservations specialist and I also opened my own cabin cleaning company. The companies take the split for there overhead, paying there payroll, advertising there office expensive, I know several owners that have choose to rent out the cabin themselves and have a lot of good luck. But to do this you need a VERY reliable person you can trust to take care of your cabin for you, cleaning supplies, trash pick up. The main thing is making your renter HAPPY they will come again and again and tell there friends and family about your cabin. Your cleaning fee is paid by the renters but you are reasonable for everything else. Maintenance, taxes, electric and water bills monthly. Hope this helps you!!!!!!!!!!!!
0 votes Thank Flag Link Sun Mar 17, 2013
I have a condo in Pigeon Forge TN that can be on a rental program.
You may contact me at 865-740-4075
0 votes Thank Flag Link Sat Mar 2, 2013
Many real estate companies now have rental programs to help their sellers recoup income when the homeshave been on the market but not sold. You may want to contact a local company and talk with them about services they offer.
0 votes Thank Flag Link Tue Nov 1, 2011
Rent it yourself through VRBO.
0 votes Thank Flag Link Tue Nov 1, 2011
April - Unless you are putting quite a bit of cash in the deal, most rental properties, whether it's overnight or long term and whether it's here or anywhere else, will be a break even proposition. It's true, you need to consider the gross income; just because other areas have a better split does not mean you will net better there. The trick is to find a short sale cabin in this area now that has all you are looking for. It is usually still furnished and often still on a rental program, which means it is still in very good condition. The savvy investor is not looking to make money through rental income, but just carry the costs and have a place to vacation. The real money in made in the purchase and future sale of the property. Buy now with the market saturated with short sale cabins and in five years you can sell it and do quite well. I have spent a lot of time in the cabin investment market and have also become a short sale specialist, partnering with another agent in my office.
Call or email me with any questions, concerns, and/or thoughts. I will be glad to share my knowledge in this market.
Web Reference: http://www.jimrechtin.com
0 votes Thank Flag Link Wed Aug 5, 2009
You will find a friendlier rental split on the Plateau than in Gatlinburg/Pigeon Forge. Fairfield Glade and Lake Tansi Village are possibilities for cabins, condos or homes. Call if I can help. DAVE
0 votes Thank Flag Link Fri Aug 1, 2008
April,

I agree with Justin. Also you might want to look at buying a house instead of a cabin and renting it out. I have friends that are on both sides. One has a cabin and because of the huge inventory of rental cabins it is very hard to have a steady income when you dont know if your cabin will rent on a steady basis. On the other side I sold a rental property to my uncle and he has been very fortunate to have found very good and respectful renters.

The upside toa buying a cabin on a rental program is that you do not have to worry about the maintenance and cleaning. The down side to buying a house is that you have to take care of the maintnance, finding renters and cleaning when renters move out.

Whatever you decide, there are great opportunities and great deals out there right now.

Please let me know if I can be anymore of a help.
0 votes Thank Flag Link Fri Aug 1, 2008
You can rent property yourself in California. Just be sure to have a credit check done and to investigate the renters. It is quite a bit of work for you, but if you get good tenants you will keep all the rental income(minus your expenses of course)
0 votes Thank Flag Link Fri Aug 1, 2008
Hi April,
Most rental companies here have a 60/40 split with the owner of the property getting 60%. However, with fees and maintenance expenses it ofter does become more like a 50/50 split.

I would recommend that you instead focus on the rental income versus the rental split. Find a property that rents for a higher percentage (some properties right now are at 15 to 30 percent) of the list price. For example, the home is listed at $300,000, just for nice round numbers, and the rental income is $70,000 which means you could net over $3,000 on average per month. Not a bad proposition.

These rental scenarios do exist right now. However, as our market is absorbing excess inventory and interest rates ares still low these deals will become more rare. I would suggest you act as soon as you can.
0 votes Thank Flag Link Fri Aug 1, 2008
April,
50% seems high for managing your property. Have you already made the purchase? If not email me and lets talk about a few developments and locations that don't charge so much.
Marian Schaffer
The Schaffer Realty Group
http://www.marianschafferrealty.com
877-886-8388
0 votes Thank Flag Link Fri Aug 1, 2008
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