Myrtle Beach is a top vacation destination in South Carolina, offering a 60 mile stretch of beaches. From golf courses and arcades to restaurant dining and shopping, this vacation resort area offers a prime opportunity for investors to find vacation rental properties. As with any investment, it is smart to know what you are getting in to. In Myrtle Beach, there are key factors to consider to be sure you are making a sound investment. Read on to see what to look for when considering a vacation rental property investment in the area, options for property management software, and what to expect as an investor in Myrtle Beach.
With any vacation rental investment, the location is key. In Myrtle Beach, you want to find a property that is located in a short-term rental zone. Let’s say you find a condo in a neighborhood and you purchase the condo to rent as a vacation rental. If your property is not located in a short-term rental zone, then you cannot rent the property to vacationers. This is a huge mistake that can cost you a great deal of money. When searching for vacation rental properties, be sure to discuss with a realtor the locations that are good for short-term rentals.
Home Owner Association fees or HOA are a set amount you pay each month to live within a property. Many waterfront resorts will include the HOA fee in a bundle but there are some that charge this fee separately. You want to be sure to know the HOA amount of a property you are considering and crunch the numbers to see if you are going to be able to make a profit with a rental based on this fee. Also, be sure to learn more about the fee. Some will include other aspects of the property such as electric or internet. For others, the HOA fee will be a separate price point and might not be an amount you are willing to pay.
Consider the Property Taxes
In South Carolina, tax breaks are provided to primary residents only. If you are an investment property owner, you will be paying a higher tax. The state does not have super high tax rates, but you must be aware that a higher price will be paid due to your investment ownership instead of being a primary resident. Check the taxes on a property to see how much you will have to pay before moving forward with an investment purchase.
Managing the Rental
To be successful with your rental, you want to work with a top-rated rental company. If you purchase a waterfront property, such as a condo, there is most likely already an on-site rental company in place or group that has operated the day to day rentals of the condo. If so, you can see if you want to continue to work with this company or find another group. A management company should provide maintenance, housekeeping and rent the property for you, as well as provide marketing aspects. By working with a top-rated rental company, you can ensure your property stays booked and you increase your bottom line.