I realize there are many answers to real estate questions, and I value everyone's opinion. I'm sure many of those answers come from valuable research and facts. I try very hard to include that information, too.
But I want you to understand something. The best answers I can give you won't always come from statistics, although I'll share those with you as well.
You see, I'm not just answering these questions. I've lived a lot of them. I've watched them play out over more than 30 years in real estate.
And although I may change the names, my stories are real. The people who lived them with me are real, too.
My hope is that when you read my answers, you're not just getting facts and figures. You're getting something a little different. You're getting a living, breathing answer from someone who was actually there.
What Does It Cost Every Month Just to Own a Cabin in the Smoky Mountains, Even When It's Empty?
Well, that's a pretty good question. And I've got a question for you before I answer it.
Do you mean a cabin that's empty because nobody's renting it, or a cabin that's empty because you own it and you're not there?
Lol. Believe it or not, those can be two very different situations.
I get asked all the time what it costs to own a cabin in Gatlinburg, Pigeon Forge, Sevierville, or Wears Valley besides the mortgage.
And there's no one answer that fits everybody.
Some people buy a little cabin in the Smokies just to have somewhere to come a few weekends a year. Others buy a cabin strictly as an investment and depend on rental income to pay the bills.
But here's something both owners have in common.
That cabin doesn't know you're not there. And the bills don't care, either.
Lol.
A cabin doesn't have to be occupied to cost you money
Let's start with somebody who buys a cabin for personal use.
Maybe you've always dreamed of having your own place here in the mountains. Somewhere you can bring the family, spend Thanksgiving, enjoy Christmas, or just get away from everything for a few days.
And I understand that completely.
There's something wonderful about having your own little place in the Smokies. Your own furniture, your own bed, your own coffee cup, and nobody telling you when you've got to check out.
But even when you're not there, that cabin still has expenses.
Electricity, water, insurance, property taxes, and possibly HOA fees. Maybe you've got internet service, lawn care, or somebody you pay to check on the place occasionally.
Now, in my experience, if we're talking about a modest cabin that's paid for, used only occasionally, and doesn't have a lot of expensive amenities, I wouldn't be surprised if some owners could keep their routine monthly bills around $500.
But let me be clear. That's not a number I'd promise anybody.
A larger cabin, an expensive insurance policy, substantial property taxes, or a homeowners association with hefty fees could put you well above that amount.
And that's before something breaks.
The electricity may be one of your biggest monthly utility bills. I've seen cabins that can run around $200 a month even with little activity, depending on the weather and what systems are running.
Now, I can hear somebody saying, "Will, how in the world am I using electricity when nobody's in the house?"
Well, that refrigerator is still running. Your heating and air conditioning system may be operating. Maybe you've got a security system or other equipment that never shuts off.
And here in the mountains, we get some cold weather.
That cabin still needs protection from freezing temperatures, whether you're sleeping in it or sitting on a beach in Florida.
The electric company doesn't send you a thank-you card for not being home.
It just sends you a bill. Lol.
Let me tell you about my friend Joyce
I had a very close friend named Joyce who owned several cabins here in the Smokies.
And one thing I remember about those cabins is that sometimes the worst problems seemed to happen when nobody was staying in them.
Now, isn't that something?
You'd think an empty house wouldn't need much attention.
Nobody's wearing out the furniture. Nobody's taking showers. Nobody's leaving the refrigerator door open or trying to figure out how to work the television.
What could possibly go wrong?
Well, let me tell you.
Pipes can freeze. Water heaters can leak. A toilet can start running. A heating system can quit working, and nobody knows it until somebody walks through the door.
And sometimes, by then, you've got yourself a real mess.
I've seen enough problems over my years in real estate to know that a house sitting empty isn't necessarily a house sitting safely.
In fact, sometimes I think the opposite is true.
When people are staying in a property, there's at least somebody there to notice when something goes wrong.
If a pipe starts leaking, somebody might see it.
If the heat stops working, somebody might complain.
But when nobody's there?
That water can keep running, and that problem can keep growing until somebody finally comes to check on the place.
And let me tell you, water can do an awful lot of damage before it decides it's finished.
Lol.
What I'd do if I knew my cabin was going to sit empty
If I owned a cabin here and knew I wasn't going to be back for several weeks or months, I'd make some arrangements.
First, I'd want somebody dependable who could check on it regularly.
A neighbor, a property manager, a maintenance person, or somebody I trusted who knew what to look for.
I'd want them to make sure the heat was working, there were no water leaks, the doors and windows were secure, and nothing unusual was going on.
I would also consider shutting off the main water supply when I knew the property would be vacant for an extended period, provided the plumbing system and other equipment allowed it.
And if it were wintertime, I'd make sure the cabin was properly winterized.
Now, I wouldn't turn the heat completely off and just hope for the best.
That's a good way to turn a little electric bill into a mighty big plumbing bill.
Depending on the construction and plumbing, you may be able to keep the thermostat at a lower temperature while you're away. But I'd follow the recommendations of the heating professional and insurance company, because not every cabin is built the same way.
And if you have a hot tub, swimming pool, or another system that needs water or electricity, you'd better make sure you understand what can and cannot be shut off.
Some equipment needs to keep running, even when nobody's using it.
The Tennessee Department of Commerce and Insurance has warned homeowners that frozen-pipe damage in an unoccupied home may not be covered when reasonable precautions haven't been taken.
So I'd check with my insurance company, too.
Because the last thing I want is to find out I have a $30,000 water-damage problem and then discover my insurance isn't going to pay for it.
Good gracious. That'll ruin your vacation. Lol.
What if it's a rental cabin and nobody's renting it?
Now, here's where the question gets a little more serious.
Suppose you've purchased a rental cabin in Gatlinburg or Pigeon Forge.
It's a beautiful place. You've got a rental company managing it, and you're hoping that all those wonderful tourists will help pay the bills.
But then you hit a slow month.
Nobody's booking.
The cabin is sitting there empty.
Well, some of your expenses might go down.
You're probably not paying as much for cleaning. You're not having guests use the showers every day or running the washing machine constantly. There may be fewer supplies to replace and less wear and tear.
But here's the problem.
Your income can drop to zero while a whole lot of your expenses keep right on coming.
Your insurance doesn't stop.
Your property taxes don't stop.
Your HOA doesn't stop.
And if you've got a mortgage, I can assure you that bank isn't going to say, "Well, Will, nobody rented your cabin this month, so don't worry about making your payment."
Lol. Wouldn't that be nice?
And that's where some folks get themselves into trouble.
They buy a cabin expecting it to rent enough to pay for itself. They have a few good months, everything looks wonderful, and they start thinking this is the easiest investment they've ever made.
Then the slower months come.
And the cabin still wants its money.
Some of the bills you might forget about
Now, I don't want to repeat everything I've told you in my other article about how much a cabin actually makes after expenses.
But there are a few costs I'd sure want to understand before buying.
Your mortgage payment is only the beginning if you're financing the property.
You still have property taxes and insurance, which may be included in your monthly mortgage payment through escrow or may be paid separately.
You'll have utilities, possible HOA fees, and whatever maintenance arrangements the property requires.
If there's a hot tub, you've got equipment to maintain. If there's a swimming pool, those expenses can be considerably higher.
Then there are things you don't always think about.
A roof that eventually needs replacing. A heating and air conditioning unit that decides it's had enough. A deck that needs repairs. Trees that need attention. Pest control. Landscaping.
And depending on where that cabin is located, even getting somebody up that mountain to work on something can be an adventure.
Some of these driveways are steep enough to make a mountain goat nervous.
Lol.
The important thing is not to confuse your regular monthly bills with your total cost of ownership.
You may go six months without spending anything on a major repair.
Then one day you need a new heating system.
That doesn't mean the other six months were free. It means you should have been putting something aside for the day that bill arrived.
So what are the monthly carrying costs on a cabin?
Here's an example to help you understand the difference between routine expenses and the total cost of carrying a property.
Let's imagine a small, paid-off vacation cabin used only occasionally, with no swimming pool and no HOA fees.
These numbers are hypothetical, not a quote for a particular property.
Electricity: $150
Water and basic utilities: $40
Insurance: $125
Property taxes: $75
Basic upkeep and property checks: $75
Total: $465
Now, that gives you an idea of how a modest personal-use cabin might come in around the $500 a month I mentioned earlier.
But this example doesn't include a mortgage, internet, a hot tub, substantial repairs, or money set aside for major replacements.
If you add $150 a month to build a reserve for future repairs, you're already at $615.
If you've got a mortgage payment of $2,000, you're up to $2,615.
And if the cabin has a swimming pool, significant HOA dues, or higher insurance expenses, those numbers can rise considerably.
That's why I always tell folks to get the actual bills for the property they're considering.
Don't rely on what somebody else's cabin costs.
Your cabin may be very different.
There's something else about an empty cabin that bothers me
You know, when you buy property here in the Smoky Mountains, particularly a vacation home, there's a tendency to think about it only when you're planning to visit.
You picture yourself sitting on the porch, drinking coffee, looking out over the mountains.
And there's nothing wrong with that.
But somebody needs to be thinking about that cabin when you're not there, too.
Especially when the weather turns bad.
We're blessed with some beautiful weather here, but we can also have storms, heavy rain, snow, ice, and freezing temperatures.
And sometimes a tree decides it doesn't want to stand where God put it anymore.
Lol.
That's why I believe having a good local person who can watch over your property is worth considering.
It might cost you a little money.
But if that person discovers a leak before it ruins your floors, or notices that the heat isn't working before a hard freeze, they may save you a whole lot more than you're paying them.
And I'd certainly make sure my insurance company knows how the property is being used and how often it's occupied.
A personal vacation home, a vacant property, and a short-term rental may have different insurance needs.
That's not something I'd want to guess about.
An empty cabin can still be a wonderful thing to own
Now, don't get the wrong idea.
I'm not trying to talk you out of buying a vacation home in the Smokies.
Quite the opposite.
I think owning a place where you can bring your family, enjoy these mountains, and make memories can be a wonderful thing.
But you need to understand what you're getting into.
If you can afford to own that cabin without depending on rental income, you might have a whole lot of flexibility.
Maybe it sits empty for a few months.
Maybe you only come here during the holidays.
Maybe you decide one year you're going to spend the entire summer here.
That's your decision.
But if you've bought that cabin as an investment and you need rental income to cover the expenses, you've got to prepare yourself for those months when things don't go quite the way you planned.
And I can tell you from experience that things don't always go the way we plan.
If they did, I'd probably be retired somewhere with my feet propped up and somebody bringing me a glass of sweet tea.
Lol.
The bottom line
So, what does it cost every month just to own a cabin in the Smoky Mountains, even when it's empty?
For some modest personal-use cabins, routine expenses might be around $500 a month, especially if the property is paid for and doesn't have expensive amenities.
For others, the total could be considerably more.
And if you're financing a rental cabin, the monthly cost of carrying that property can run into thousands of dollars before you receive a single rental payment.
But here's what I really want you to remember.
An empty cabin doesn't mean an expense-free cabin.
The lights may be off. The beds may be made. Nobody may have walked through the front door in three months.
But that house is still getting older. The weather is still beating on it. The equipment is still aging, and the bills are still arriving.
I'd ask for the actual expenses, make sure I had some money put aside for emergencies, and find somebody dependable to keep an eye on the place when I wasn't there.
Because sometimes the most expensive problem with owning a cabin isn't what happens when somebody's staying in it.
It's what happens when nobody is there to notice something has gone wrong.
And I think my friend Joyce would have agreed with me on that one.
These mountains are a wonderful place to own a home. Just remember, whether you're there or not, somebody's got to take care of it.
"Be thou diligent to know the state of thy flocks, and look well to thy herds." (Proverbs 27:23)
Hope that helps. God bless.
Will Cupp
Sevierville Realtor and Real Estate Broker
Realty Executives Associates, (865) 983-0011
865-654-9807
No comments yet. Be the first to share your thoughts!