Are you keen on investing in a property in Myrtle Beach, South Carolina but don’t have the money? Or even thinking of becoming a host or a property manager? Well, rental arbitrage is the best direction for you. With that said, the article will guide you on what you should know to become an Airbnb Rental Arbitrager in Myrtle Beach such as:
To simplify, rental arbitrage is a way forward in operating an STR business without actually owning a property and earning an income through real estate. With that said, rental arbitrage allows you to host a wide range of spaces from an entire house to private rooms or even a shared room.
Rental arbitrage is perfectly legal as long as you abide by the specific laws and liability guidelines in your region.
Is it profitable?
Yes! However, it is based on a certain number of factors such as:
To learn more about rental arbitrage, check out: What is Airbnb Rental Arbitrage?
Myrtle Beach is the heart of South Carolina’s Grand Strand coast and is known for its exciting attractions. It is no surprise it is home to high-rise hotels, resorts, oceanfront condos, and vacation rentals. Did I even mention it? Myrtle beach is the perfect place for a relaxing and enjoyable family vacation.
With the current market data, according to AirDNA, Myrtle Beach is:
Furthermore, the popularity of home rentals listed on VRBO is 39% compared to 31% on Airbnb. Not to mention, strict cancellation policies are more favorable by hosts. Below are other market data to consider based on AirDNA:
Here are some frequently asked questions to consider:
Are rental properties required to have business licenses?
Yes. It is illegal to operate without a business license and is subjected to a maximum fine of $500 (plus court costs) and/or up-to 30 days in jail, upon conviction. Take note, each day of violation is considered a separate offense.
How long does it take to acquire a business license?
It depends on the classification of the business. Applications are subjected to approval by the City Departments and State Agencies which include but are not limited to:
Can the city refuse to license a business? It will not be issued if:
What is the Hospitality Fee?
A 1% fee is imposed on transient accommodations, paid admissions to places of amusement, and the purchase of prepared or modified food and/or beverages intended for immediate consumption.
What is the Local Accommodations Tax?
It is a 0.5% tax on short-term or transient accommodations.
Short-term or Transient accommodations are accommodation provided whether it is on a daily, weekly, or monthly basis within the stay of ninety days.
Every short-rental operator must be aware of the local regulations that are applicable including rules covering:
It is your responsibility as host to be aware of the local ordinances on short-rental properties such as:
It is unlawful to discharge or use fireworks; this includes, sale, offer, store, exchange, give away, possess of sale except in limited industrial zones. A first offense will be charged with a fine of $310 and a second offense will result in custodial arrest.
Between the hours of 11:00 pm and 7:00 am, it is prohibited to cause or permit any sustained or repetitive noise, regardless of the source, audible beyond the property line.
As it is rapidly growing in popularity as a vacation destination so does its parking challenges. May 2021, the City approved rules and requirements with regards to transient parking and short-term rentals. It is crucial for hosts/property managers to report to their guests and the City the total number of parking spaces on their property, complying with the safety regulations determined by the City and State codes.
Parking spaces reported to the City must be located within the owner’s private property, not shared with the adjoining property, and not located within a right-of-way.
Due to the large growth in short-term rentals, it has created an abundance of complaints with regards to trash left curbside at the rental units. It is important to be aware that the City now picks up the trash four days a week- Friday, Saturday, Sunday, and Monday.
It is required that all short-term rental properties have a working smoke alarm inside and outside of all sleeping areas.
In growing your rental arbitrage business in Myrtle Beach and the potential to earn a substantial profit, understand that market research is a highly valuable asset in strategizing your business. With the data, you can identify problems, predict future trends, make informed decisions and implement evidence-based strategies.
And lastly, if you are thinking of rental arbitrage in other regions, check out the following: