Finding and researching the best cities for a vacation rental business is the most trending topic among property managers. Obviously, location is the main key factor when investing in a property. More so, real estate investors look at lucrative real estate strategies, high demand for vacation rentals, and the ability to charge a higher daily rate.
That being said, South Carolina is known to be one of the most affordable and return of investment in the U.S. Whether it is beachfront or suburban property or even just apartments designed to attract university students, investing in South Carolina is a blossoming opportunity for investors with its picturesque shoreline, year-round festivals, historical monuments and attractions, and mountain views adding to the appeal.
If you are thinking of considering where your next rental property investment is? Well, I have put together a list of Airbnb's best cities in South Carolina. Without further ado, this article will guide you on:
Take into account close-by attractions such as beach, town, or even business or university institutions that specify the type of guests in the neighborhood will attract which in turn help decide the price you set for your vacation rental.
Keep in mind, that your Airbnb vacation rental profitability will affect depending on the property taxes imposed by the city and business licensing requirements of the chosen neighborhood.
Before buying or investing in a vacation rental, firstly, it is important to do thorough research on the crime rates in the neighborhood you're taking into account. Needless to say, you do not want to invest money into a city or neighborhood that has a high crime rate as this increases the risk of investment for your vacation rental.
Apart from that, properties with higher crime rates in the neighborhood will not allure guests as they would want to feel assured that they are safe in the area they would be staying in.
Amenities on offer in the city such as restaurants, beaches, parks, mountains, etc will make a huge difference in the daily rate charge and will determine how successful the vacation rental business will be.
Apart from that, consider researching amenities and features the property offers such as parking space, garden, pool, and whether there are enough rooms for the type of Airbnb you want to provide to the target guests.
By finding out the number of listings and vacancies in the city, it will give an idea of the number of competitors where you can use this data to either guarantee that your vacation rental is the most competitive or located away from the competition.
To have an idea of how much you are earning, look at the average rental income at the current average occupancy rate which will help you set competitive prices accordingly, and plan for what are the expected expenses based on the estimated revenue.
It is vital to research what are the natural disasters in the city before buying or investing in a property so that this will help you prepare for the unexpected and include the type of insurance cover is needed for your vacation rental.
Myrtle Beach is known for its picturesque shoreline views, endless entertainment, fine dining, and vibrant nightlife- perfect for a relaxing and enjoyable vacation among travelers. Not to forget, it is also a well-known spring break destination with its tempting long walk sandy beaches, green golf courses, and southern hospitality all wrapped in one, making it a perfect vacation rental property investment location.
Moreover, according to Jewish Business News (2020), with a 7.1% increase in home value per annum, Myrtle Beach has all the more potential to grow as a powerful economic and entertainment hub.
Average Daily Rate: $187 Occupancy Rate: 71% Revenue: $2, 618 Home Value: $274K Median Listing Home Price
Columbia is known as one of the best places and ideal cities to live in South Carolina, especially for families, singles, and students. That being said, the demand for vacation rentals is high due to the creative hub that's fed by the university and capital city communities.
More so, most of the students occupy rental properties which is an ideal property investment especially when the city offers year-round festivals, a local shopping scene, parks, and surprising food and drinks served, making it a perfect getaway.
Average Daily Rate: $149 Occupancy Rate: 65% Revenue: $1, 918 Home Value: $210K Median Listing Home Price
Charleston is one of the largest cities in South Carolina as the city offers a range of activities from festivals to mind-blowing culture and history, arts, food, adventure, and so much more. That being said, it is no surprise why visitors flocked to Charleston and enjoy what this beautiful city has to offer which is an ideal property investment for investors who are looking to invest or expand in a vacation rental business.
Take note, Charleston is among the top ten in the U.S. housing market for the next several years and ranked by BiggerPockets as one of the top seven best cash flow markets in the country in 2020. That said, the reasons behind the strong performance of Charleston real estate are due to relatively affordable housing, solid local economic, and consistent job growth based on Charleston Regional Business Journal.
Average Daily Rate: $268 Occupancy Rate: 75% Revenue: $4, 457 Home Value: $445K Median Listing Home Price
If you love the outdoor or maybe just a fan of history, foodie, or art lover, Greenville is a great travel destination to go to. Moreover, the city is packed with entertainment, culture, shopping, culinary experience, and offers great neighborhoods like City view, Judson, Sterling, and the southern side.
Keep in mind, these neighboring cities are an ideal reasonable investment return as the economy is rapidly growing and relatively inexpensive cost of living making it an attractive choice for investors investing in rental property.
Average Daily Rate: $149 Occupancy Rate: 69% Revenue: $2, 135 Home Value: $299K Median Listing Home Price
Spartanburg is the 5th largest and top tourist location in South Carolina and is named after a local militia called the Spartan Regiment in the American Revolutionary War. It is home to many unique attractions such as Hollywild Animal Park, Miliken Arboretum, Hub City Railroad Museum, and so much more.
Apart from that, the county offers one-of-a-kind character and history all its own. Moreover, rental properties in Spartanburg are high in demand, especially with students, young professionals, and business owners making it ideal for property investors as well.
Average Daily Rate: $130 Occupancy Rate: 63% Revenue: $1, 626 Home Value: $219.9K Median Listing Home Price
Do not be fooled by this small and sleepy town of South Carolina. Sumter is home to a variety of activities from year-round festivals, parks, outdoor markets, sports enthusiasts, arts, and home to a host of historical attractions.
Moreover, the county of Sumter offers some of the most inexpensive properties in the state and quality neighborhoods with a rising household income and entertainment opportunities great for property investment. That said, based on Mashvisor data, Airbnb's cash on cash return is 6.39% with a rental revenue income of $2,123 resulting to surely a great investment opportunity for a vacation rental business.
Average Daily Rate: $118 Occupancy Rate: 70% Revenue: $2, 010 Home Value: $214.3K Median Listing Home Price
Forest Acres is home to thriving shopping and restaurant spots but most of all it is known for its distinguished parks, outdoor concerts, and weekly farmers' markets. That said, this small scale of the community and inexpensive cost of living is an ideal location and lucrative investment for investors.
Occupancy Rate: 59% Revenue: $2, 099 Home Value: $250K Median Listing Home Price