Guide to Buying A Myrtle Beach Vacation Rental

Guide to Buying A Myrtle Beach Vacation Rental

Is owning a vacation rental in an exotic location on your bucket list? Then look no further! Discover how you can own your own vacation rental home nestled along the Atlantic Ocean overlooking majestic sunrises! With this guide, you'll be able to find everything you need to know about buying a Myrtle Beach vacation rental!

What Makes Myrtle Beach Vacation Rentals So Special?

Myrtle Beach offers the perfect picturesque property for you! A loved vacation spot that combines thrills, sights, and relaxation, this family-friendly destination is excellent for owning a vacation rental property due to its 60 miles of pristine coast encompassing white-sand beaches, a subtropical climate, world-class golf courses, and tantalizing seafood restaurants that make Myrtle Beach one of the top vacation rental destinations in the U.S.A. There is something for everyone in this paradise, including water parks, amusement parks, and shops galore for retail therapy not forgetting its 14 unique communities!

What Are The Benefits Of Buying A Myrtle Beach Vacation Rental?

For vacation rental investors who are eager to enter a hot market, that makes Myrtle Beach an ideal place to be. This popular beach town consistently sees a wave of tourists every summer. In 2020, the Myrtle Beach Convention Bureau reported 12.8 million visitors despite the challenging economic conditions, and the year before, saw 20.6 million tourists explore the shorelines and stroll the boardwalks. News and World Reports have named Myrtle Beach the Fastest-Growing Place in the U.S. for 2021-2022.

Here are a few good reasons why you should be buying a Myrtle Beach vacation rental home in South Carolina.

1. Cut-Rate Cost of Living

If you are thinking about buying a vacation rental in the Myrtle Beach area, a major draw is its low cost of living compared to other states. Even so, all facilities & services are still completely available.

  • Housing prices are temptingly low in Myrtle Beach. The total housing cost of Myrtle Beach is 30% lower than the national average cost. What's more oceanfront condos for sale in Myrtle Beach come at remarkably low prices compared to other options.
  • As for other expenses, bus fares and gas prices are 8% lower than the national average.
  • Hospital and health care costs? The charges here are about one- third of what you would have to pay in Las Vegas or Miami!

2. Low HOA Fees & Taxes

The HOA fees are probably the first thing you think about when you invest in a property or decide to buy one. Homeowners’ Association (HOA) is an association of real estate developers who look after the properties & charge you monthly for their services.

HOA fees in the Myrtle Beach area are a lot less than in other states considering the facilities you will enjoy. Taxes work the same way. you need to pay more taxes on high-risk properties, such as condos and oceanfront properties. Nevertheless, South Carolina's overall taxes are lower, which is reassuring. Property tax is around 0.5 percent, compared to the average national rate, which is about 1.1 percent. Consequently, the condo tax rates will not bother you much. Also, you won’t have to pay $40-50 for annual inspection costs here.

For a piece of in-depth information on HOA Fees & taxes read our blog on Rental Arbitrage in Myrtle Beach | What You Should Know!

3. High Rental Rates

Buying a Myrtle Beach vacation rental in South Carolina, you'll have an enormous opportunity to generate income during the busy spring and summer months when it's a popular vacation spot with crowds in the millions. Statistically, tourists flock to beaches, and they want to stay in accommodations that are all the comforts of home and claim preference to vacation rentals.

So if you own property anywhere within a 65-mile radius of Myrtle Beach and put it up for rental, you are bound to get a steady stream of vacationers, especially during the holiday seasons. Myrtle Beach rental prices are going up due to increased demand in this coastal area. It's probably the right time to invest in buying a vacation rental on Myrtle Beach!

This gives you a good opportunity to make a stable rental income. Pay off your mortgage with it or renovate your home and charge a premium for it. and its beach houses.

Pro Tip: You are more likely to be able to get a higher rent rate if you buy a beautiful oceanfront home.

4. Affordable Property prices

Property prices are lower in Myrtle beach compared to other neighboring states. Condos range from one-bedroom mid-range units to luxury six-bed units, so you have many options to choose from. A beachfront condo can be yours for less than $200,000 here.

5. Good Community Services

The last thing you should be worried about at Myrtle Beach is what to do in your downtime. Myrtle Beach has more miniature golf courses per square mile than any other place in the entire world.

Eighty championship golf courses over the 60 miles of shoreline will be enough to keep you busy. Even Golf Digest talks about how beautiful the golf courses in Myrtle Beach are.

Almost 600 fine arts events take place annually here in Myrtle Beach. There are also plenty of casinos in South Carolina. If you are planning to retire here or move in completely, the community is super friendly. You will meet lots of interesting people here along with all the professional, cultural, religious organizations.

What’s more, the community is known for providing valuable support & assistance in times of need.

6. Wonderful weather all year round

Myrtle Beach welcomes over 14 million tourists annually. Because the summer is so busy with tourists, you'll have no trouble making money. Summertime business will increase your revenue-generating opportunities.

Summer is followed by a quiet winter, though bookings will keep coming due to locals who enjoy the lower prices in the off-season. Myrtle Beach, South Carolina is seldom impacted by hurricanes. Also, you won't have to deal with the unbearable heat. Winter lasts barely upto 60 days, with temperatures below 50 degrees. You can easily enjoy all the seasons from Spring to Halloween to Christmas without experiencing extreme weather such as those found in the north or south.

7. Proper health facilities

If you are concerned about the healthcare facilities, then rest assured. There are enough doctor’s offices, hospitals, diagnostic centers, and drugstores in Myrtle Beach to take care of all your healthcare needs. You won’t need to drive over 10 miles to access services here.

Myrtle Beach has won many awards for providing the best healthcare service several times. You will have access to high-quality medical services and resources including:

  • Cardiovascular surgery
  • Emergency Medical Assistance 24/7
  • General surgical procedures
  • Rehabilitation centers

The two most popular hospital systems here are the Georgetown Hospital System and the Loris Healthcare System. These systems include hospitals and access to emergency medical services and facilities. Nursing facilities for the elderly are also available.

8. Declined interest rates on mortgage loans

There are strict laws governing this market, making it much safer to invest in and there are lower risks for investments in house construction and mortgage loans now. Interest rates and prices have been stable recently. Rates on mortgages are at an all time low. June-July of this year marked the first time in almost 50 years that a 30-year fixed-rate mortgage had interest rates below 3%. So look for those Myrtle Beach homes for sale now to avoid higher interest rates in the future!

When Is It The Best Time To Buy A Vacation Rental In Myrtle Beach?

According to some experts, it's best to buy a vacation rental during the slow season, mainly because of the money you'll save. However, you may want to consider buying during peak season instead. This will allow you to experience the property as your guests would. This will not only allow you to see the house's selling points but it will also allow you to notice any potential problems you may have missed otherwise. Having first-hand experience of your property will allow you to adjust accordingly to provide your guests with a superior stay.

Quick Guide To Buying A Myrtle Beach Vacation Rental

There are a few things you need to know before you even consider buying a vacation rental in Myrtle Beach. Buying a vacation rental requires a special set of strategies you need to follow for success. Every step of the process has been streamlined into simple steps that anyone with a good work ethic can understand.

Six Steps to Strategize Streamline and Success :

1. Find the Perfect Prospective Property

Simply, the location of a property is the most important factor of a vacation rental; it’s the one thing that ultimately can’t be changed. Walk around and get a feel for the area. The placement of your property will determine your success as a vacation rental. Consider the following

  • Convenience / Proximity to the locality
  • Research the area for occupancy rates
  • Current supply and demand in the area
  • Average revenue in the vicinity

While you certainly need to consider the tangible financial aspects of a prospective property, you can’t ignore the fact that your impending purchase must be in a pleasant, accessible, desirable location to attract guests easily.

Also, be attentive and make sure the chosen property is located in the” short-term rental area.” and approved by the HOA.

2. Explore the Property View

The difference between an oceanfront and an ocean view property is immense. A seafront building does not always have a sea view. Many of those houses have oceans either on the side or no sight at all. Your rent will be decided according to the location. When looking for a house, remember this! Many buyers ignore the importance of viewing the property in person before purchase.

3. Conduct your Market Analysis

Conduct “In-Depth” market analysis. Keep in mind that beach vacation rental demand is a different platform. Ask yourself, would you want to vacation in this area yourself? Consider practical things, such as;

  • Attractions in the area & how their popularity changes during the course of the year.
  • In order for an investment in vacation rentals to be sustainable, there must be a consistent demand in the area of choice
  • Seasonal appeal, and how it affects ROI

Pro Tip: It would be wise to consider vacation trends and property types that are influencing the area.

  • Decide what type of property you want to buy - Condo, Town house, Apartment, etc.
  • Do a market comparison with similar property types. Doing so will give you an inside look at how the market performs for a particular type of property.

Free listing sites such as Airbnb, Booking.com, Expedia are great places to compile market data. Besides familiarizing yourself with a respective area, you can easily identify a rental price range and begin to formulate the income you can reasonably expect from the property you are interested in.

4. Calculate your costs

Beach vacation rentals properties operate much differently from traditional rentals: the income generated often depends on the season. You need to know what you can expect during both the peak seasons and off-peak season.

  • To buy the property, you will need at least a 25 percent down payment. (Factor in an expected higher interest rate)
  • List out the overall monthly expenses
  • Expenses to furnish the property
  • Cleaning Fees
  • Various other fees: condo fees, HOA fees, routine maintenance, etc.
  • Bookkeeping and accounting expenses
  • How you plan to finance your vacation rental (Link)

If you find a place with intrinsic demand and once you crunch the numbers if it indicates a steady stream of positive cash flow, you know - you are on the right track!

5. Draw up a Business Plan

Investing in a vacation rental will only be worthwhile if you have a business plan in place before you take the plunge and purchase the property. Here are some key elements to include for a wholesome result

  1. Your USP (unique selling proposition) - should explain the unique characteristics and offerings your vacation rental business brings to the market.

    Eg: is your rental [Pet Friendly] (https://www.hostaway.com/how- to-market-pet-friendly- airbnb-units)? Or are you leaning towards an Eco Friendly rental ?

  2. Establish a clear picture of the landscape of the industry you will be entering by stating some key trends and expectations.
  3. Consider your target audience. The money you make depends on your clients - or your guests. Hence, a proper targeting strategy and understanding of them is important.
  4. Include a business operation plan which is simply a roadmap to how you are going to run your property day-to-day. Factors such as hiring employees, setting standards, keeping track of inventory, etc. Related Articles for further reading: Vacation Rental Cleaning: Tips & Tricks Building Your Vacation Rental Team Hiring qualified Handymen
  5. Include information about the rates you plan to charge for your vacation rental, along with any pricing or yield management tools you plan to use.
  6. Make sure you include a marketing strategy, which entails advertising your business to customers and generating bookings for your business.

For success with your business, consider consulting those who have experience and proven success in the rental market, as well as those who interact with hundreds of rental businesses every day. Join online forums and be apart of webinars to stay ahead in the market!

6. Market your property on the right channels

The moment you have made an investment in your vacation rental home, it is time to start marketing your property and fill your calendar with as many bookings as possible. Fortunately, there are several inexpensive booking sites for vacation property owners to get as many eyes on their properties as possible. Below are some examples:

  • Direct booking website - create your own website to generate direct bookings
  • List your property on multiple OTAs such as Airbnb, VRBO, Booking.com etc.
  • You can find more information about listing on alternative vacation rental websites to grow your online presence in our blog here
  • Social media could be a great way to get your vacation rental noticed. Beach vacations come with several health benefits, such as reducing stress, outdoor activities, improving health, lowering pollution levels, and enhancing skin health, so make sure you mention them online.
  • Google Ads, Google My Business & Google Vacation rentals are also popular options to extend your marketing online

While Considering Buying A Myrtle Beach Vacation Rental, Consider These Issues Too:

1. Security management

If you buy a vacation rental in Myrtle Beach, recalculate your actual return considering the substantial expense you plan to invest into the security and management of your property. With the recent popularity crime rates have been on the rise but keep in mind that you will also attract more tenants or renters if your property is safer. So consider the security system a long term investment.

2. Competition

Due to the increasing popularity of Myrtle Beach, its demand is increasing as well. This, in turn, will push up the price. Recent data and forecasts indicate this. As a result of the current economic climate, prices are only stable to a certain extent. In the coming months, experts believe prices will rise again Get ahead of the competition if you plan to buy a beach house or condo. Your oceanfront beach house won't last long if you're not ready to compete with other buyers.

3. Hurricanes & Storms

Hurricanes are a concern for coastal residents and investors who reside or invest in coastal areas. Despite the limited chances of being directly affected by storms in Myrtle Beach, taking precautions is a good idea. Myrtle Beach is subject to hurricane landfalls. Despite that, Myrtle Beach's coastline has largely shielded it from past storms.

Conclusion

In conclusion, when buying a vacation rental, remember they tend to appreciate over time. But, more than that, you’d be lucky to find the range of amenities that Myrtle Beach offers in any other coastal and resort area. Despite the wide range of choices at your disposal, factors like cost, interest rate, and demand are essential to analyze before jumping in. It's smart to do your research well. Clear out any confusion you might have and don’t hesitate to get professional advice when needed. It will help you to decide more confidently. Make your dream investment a reality. It awaits you in Myrtle Beach, South Carolina!

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