Smoky Mountain Property Management Crisis

The Smoky Mountains have become one of the hottest short-term rental markets in the United States, but behind the booming tourism and record-setting occupancy lies a growing problem: a Smoky Mountain Property Management crisis that is quietly draining profitability from thousands of owners.

Whether you own a single cabin in Sevierville or multiple luxury rentals in Gatlinburg or Pigeon Forge, you’ve probably noticed one thing: there are more Property Management companies than ever before—and many of them are offering less value while taking more of your revenue.

In this article, we’ll break down why the current model is failing owners and how alternatives like co-hosting, training programs, and operational coaching are creating a new path forward.

An Oversaturated Market of Property Managers

A decade ago, there were only a handful of companies servicing short-term rentals in the Smokies. Today, the landscape is overcrowded. Dozens of new brands appear every year, making it harder for owners to evaluate who actually knows what they’re doing.

This over-abundance of Property Management companies has not resulted in better service or lower fees. Instead, it has created:

• Increased turnover among PMs

• Inexperienced operators entering the space

• Cookie-cutter approaches applied to unique properties

• Owners hopping from one company to the next, searching for results

With so many options, you might assume that competition would improve quality. Unfortunately, the opposite is happening.

The 15–20% Problem: Fees That Erode Your Profit

Most Smoky Mountain Property Management companies charge 15–20% of your gross revenue, a percentage that feels even heavier in a destination where owners already face:

• Higher-than-average cleaning costs

• Steady increases in maintenance and materials

• Rising utilities

• Local tax obligations

• Increased guest expectations

If your cabin earns $100,000 annually, a traditional Property Manager keeps $15,000–$20,000 before expenses—even if you still have poor communication, slow response times, or under-optimized listings.

Owners are waking up to the reality that PM fees are often the single largest line item eating into their return on investment. And yet, despite these premium fees, most PM companies are not delivering premium service.

Wasteful Operations Are Quietly Killing Your ROI

One of the core issues driving the Smoky Mountain Property Management crisis is operational inefficiency. Many PM companies are built on bloated workflows left over from the early 2010s. Instead of modernizing, they simply pass costs to owners.

These wasteful operations include:

• Overstaffed teams with unclear roles

• Slow maintenance response times leading to unhappy guests

• Inefficient cleaning scheduling

• Poor inventory control that results in unnecessary re-orders

• Outdated software systems

Owners end up paying for these inefficiencies through reduced occupancy, subpar guest experiences, and excessive maintenance charges.

The harsh truth? Property Management companies are not adding nearly as much value as they claim. Many rely on complacent processes while expecting owners to accept underperformance “because that’s how the industry works.”

But it doesn’t have to work that way.

Covenant Short Term Solutions: A Smarter Path Forward

At Covenant Short Term Solutions (replace with your link: https://yourwebsite.com), we saw the Smoky Mountain Property Management crisis long before it became obvious to owners. That’s why we created an alternative model that focuses on empowerment, efficiency, and transparency.

We don’t believe every owner needs a Property Manager.
We don’t believe every Property Manager needs bloated operations.
We don’t believe Smoky Mountain owners should sacrifice 20% of their income for mediocre results.

Instead, we offer solutions designed to return control—and revenue—back to owners and managers.

1. Co-Hosting Services for Owners Who Want Low Involvement Without High Fees

Many owners want hands-off management but don’t want to give up 20% of their income. Our Smoky Mountain co-hosting services bridge that gap.

Co-hosting lets owners retain more of their revenue while we handle:

• Guest communication

• Maintenance and Cleaning Coordination

• Review Management

• Quarterly Property Visits

2. Training for Self-Managers Who Want Maximum ROI

The fastest-growing trend in the Smokies is owners taking control through self-management. We train owners to:

• Streamline their operations

• Automate day-to-day tasks

• Implement dynamic pricing

• Optimize listings

• Improve guest satisfaction

3. Efficiency Training for Property Managers

Property Managers aren’t the enemy—inefficient operations are. We offer operational efficiency coaching for PM companies that want:

• Lower costs

• Happier clients

• Higher margins

• Better review scores

• More scalable systems

The Future of Smoky Mountain Property Management

The old model is breaking down. Owners want transparency. They want control. They want higher returns. And they’re tired of paying 20% for underwhelming results.

Covenant Short Term Solutions is building a better way—one where owners keep more of their revenue, Property Managers run smarter, and guests enjoy a consistently excellent experience.

If you’re ready to make the appropriate changes, fill out our contact form!

The Smoky Mountain Property Management crisis is real. But the solution is already here.