It is almost the end of February, and now is the time of year that I speak with the most people about buying a rental property in the Myrtle Beach Area. It is not just a rental property, but a vacation rental that is most desired. Early spring to me is the best time to purchase a vacation rental property, because in most case there will be an instant gratification from of rentals soon after closing.
The rental rates go up in March, because demands for the rooms go up in Myrtle Beach around this time. It is true that our busiest season is from Memorial Day to Labor Day on the ocean, and the spring season is great for golf course condo rentals. There are several different types of vacation rentals to choose from, and people buy them for different reasons. Most of the time, the purchasers are planning on using the condo, house, or villa for a week or two throughout the year. Some people may buy a vacation rental property in
Myrtle Beach to retreat from freezing winters, and rent out the rest of the year. Every purchaser has different motivations that encourage them to purchase rental properties in the area.
If you are purchasing a condo that allows vacation rentals in Myrtle Beach, there are a few things that you may want to consider. First of all, the Home Owner’s Association and how it is run is a crucial factor that should guide your decision making process. In
Myrtle Beach, just about every condo complex has a different association, and they are all ran differently. When I am searching for oceanfront condos for my clients, I try to keep the HOA fee reasonable for them if making the numbers somewhat work for them is important. After analyzing several of the associations in some of these building, I have noticed that $400 to $450/month is about average. At that price, the fee should include insurance coverage for the exterior of the building. The owner is responsible for content and liability insurance for inside the unit.
Another real important aspect is the rental split. I am speaking of the charge for securing a guest, making sure the guest is well taken care of, cleaning after the guest and any other items that go along with vacation rental management. Typically the rental split is higher for the onsite rental companies that offer more services to the guest, and less expensive for third party off site rental agency, that typically manages check-in and check-out procedures.
Before ratifying a contract on a rental unit, you should also take a look at the Covenants and Restrictions, “Minutes from the last meeting”, and the budget for the building. Also, ask to see if there are any anticipated special assessments coming up. Knowing about special assessments can be the biggest deal breaker. To me this means that the HOA is not preparing the budget effectively in order to take care of common maintenance. There is a lot involved with Home Owner’s Associations. Just make sure that you do your diligence before purchasing a condo.
Vacation rental homes are quite different that oceanfront condos in Myrtle Beach. There is usually not a Home Owner’s Association involved. Therefore, you have to worry about all of the exterior maintenance, lawn service, pool service, trash pick up, insurance coverage, and all other aspects that may be covered with the typical association coverage. Rental rates are typically higher for a house, and the rentals are usually contracted out to third party rental companies. Rental Houses run pretty ramped in Cherry Grove,
Surfside
Beach and
Garden
City
Beach. Usually these beach houses are rented by a few families that may share a house. Vacation beach homes around the Myrtle Beach Area tend to receive more repeat visitors that the condos.