Short-Term Rental Market Entry Strategist

Regulatory Risk: Tennessee is generally STR-permissive, but Sevier County and Gatlinburg have enacted density caps and permit requirements. Action item: pull current permit status before closing — verify with Sevier County Planning Commission. Revenue Projection (Smoky Mountains comparable data): Peak season (Oct, Jun–Aug) ADR: $285, Occupancy: 78%. Shoulder: ADR $195, Occupancy 62%. Off-peak: ADR $155, Occupancy 45%. Weighted ADR: $228. Annual RevPAR estimate: $56,940 gross. After co-host (20%), cleaning, supplies, platform fees (3%), utilities, insurance, taxes: Estimated net: $34,500–$38,000/yr. Cash-on-cash (25% down, 7% rate): ~11.2%. STR vs. LTR: LTR market rate for this property ~$2,100/mo ($25,200/yr). STR net exceeds LTR by ~$11,000/yr — meaningful but requires active management. Recommendation: STR viable with co-host model; verify permits before committing.