Often many customers come to Myrtle Beach thinking of buying rental properties or invest in real estate. Some do not fully comprehend the Myrtle Beach area’s rental industrial sector.
Therefore, before deciding to acquire an investment property in the city, here are some key factors furnished here for you to consider.
There are few suggestions on this list to apply specifically for”short-term” assets for rental investment. These are mainly residences and apartments mostly for the coastal front view property.
So let us begin by explaining why to concentrate on short-term rentals, also known as vacation rentals, not long-term investment properties.
Most investors prefer a fast and significant return on their investment. A yearly lease on a condo maybe $800 a month.
Why buy that if you can purchase something closer to the beach that rents for $1,000 a week for a two-bedroom not on the beach property? Now there are short and long-term rentals, and it all depends on the inventor’s preferences.
So here are the points to know before buying a short-term rental property in and around Myrtle Beach that will give you an insight for efficient investments!
1. The Prices of Rentals Are Increasing
Myrtle Beach is a popular spot for visitors and a pleasant holiday venue on the coast of South Carolina. Millions of visitors come here every year to relax or just to see the beauty. But Is myrtle beach affordable?
If you come here for a break, you can afford to get your own beach house and condos. And other people want to rent or stay in hotels.
For holidaymakers and visitors, bookings at Myrtle Beach are often cheaper than holiday rentals. So, if you own a house in the 65 km area covered by Myrtle Beach, your house will not remain vacant if you know the right approach.
It will be a good opportunity for you to earn some cash from your house. The revenue is constant and stable. If there are any mortgages on your house, you can pay off the loan from this income.
And more interesting the rental rates are rising. Even in this immobilized situation of COVID-19, there is a growing demand for beach houses, and it is no surprise.
2. Please Check the Location
So when you buy a house, the main factor is the venue. This should get the utmost importance. You need to know more about the place before deciding to buy a short-term rental.
You can’t just buy a condo in any neighborhood and put it for rental. It must be located in the”short-term rental area.” and approved by the HOA.
See your Realtor or make inquiries to find out if the spot is perfect for speedy rentals.
The place also refers to the unit’s location of the actual building. 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 to view the property in person before purchase.
Since it is primarily for rental purposes, so at least check with your Realtor, as low views=low sales.
3. Tax Issues
It is an essential point that needs to get some limelight. Some primary residence in South Carolina get tax breaks, but your property is for investment.
Currently, if anyone stays in their residence for at least seven months a year, have to pay a higher tax for being an investor than a regular resident would for the same house.
In South Carolina, taxes are cheap compared to other places, however, taxes are higher for rental properties, and those located in high-risk areas like oceanfront condos or houses.
You can always check with your realtor about the tax on different properties.
4. Weather Issues and Hurricanes
In terms of living or investment in coastal areas, hurricanes are a big concern.
Although the storms are unusual in Myrtle Beach, it does not hurt to take precautions. In Myrtle Beach, hurricanes make landfalls but are lucky to escape storms due to their shoreline.
The hurricane-prone areas are Florida, Louisiana, and North Carolina.
Myrtle Beach experienced two semi-major hurricanes in the last decade, Irene in August 2011 and Florence, 2018, which caused strong wind, precipitation, and flooding in part of the beach.
One positive thing about investing in Myrtle Beach real estate is the appreciated value of the property. Besides, very few coastal and resort areas can offer the facilities provided here.
5. Who Will Be Responsible for My Rental?
Now I’m sure you are thinking why do I have to rent my property to someone in the world and why will I need it? The answer is easy, and it is related to gross against net profit.
Just because you pay a higher charge does not mean you get less money in your wallet at the end of the day. Business A on-site company may be charging a 45% split of gross profit, but it takes gross sales to $40,000 which gives you a net of $22,000.
An off-site Company may take just 10%, but in return gives you a gross of $23,000 with an impressive 90% of the overall $20,700.
What happens in certain buildings when you use an off-site rental company is now more important than that.
Many on-site businesses have to do a lot of walks and telephone calls to reserve a room, when you rent from an off-site company, the on-site company can block your room from going to the hotel or resort without renting it out to anyone.
And here they begin to hurt you. They also do not encourage the owner’s guests to use the facilities offered by the resort, thereby harming the price he may rent.
They are allowed to do and follow this practice all the time. This is why most people just stick to the rental company on site.
Consult with your Realtor about the pros and cons of the off-site and on-site rental company. Comparing the different results and seeing which alternative puts more money in your wallet will be a wise decision.
Note that the on-site company also provides maintenance and housekeeping personnel.
6. Take Security into Account
As with all homeowners, it is important to take care of the property and keep it safe.
If you own a property in Myrtle Beach, it is of greater concern. Myrtle Beach along with its popularity has some occurrences of uninvited crimes.
Myrtle Beach is the 3rd most dangerous city in the U.S. So you may have to make some extra effort for the security and protection of your property, remember a safe locality attracts more rental.
7. Lastly, Managing Hoa Fees
This will probably be the first question that comes to your mind whether to invest or not in real estate. What’re the fees for HOA? This is something to look out for too.
Many of these resorts along the ocean have HOA protection, and when it’s bundled together it’s cheaper. However, some people do not include it.
After an easy phone call to the HOA, search out your Realtor and they will give you the right information.
See also what is included in this segment. Many charges will include the electrical, telephone, water and sewer facilities, etc.
However, some HOAs do make you pay for your electricity and other facilities. So look at various HOAs and see what is the best deal for you. Make sure to verify what maintenance charge is included in the HOA fees.
Those are 7 points to look at before purchasing an investment property in Myrtle Beach. Follow these, and it will help you to make a better decision. I hope this article gives you a quick insight into the subject!