Do you have a favorite getaway destination in mind? A place where you can get away from the busy world and even settle down after you retire? Buying a vacation rental property in your coveted travel destination not only fulfills these dreams for you, but it can also be a good investment. The perks of owning a vacation rental are beyond your imagination. You can enjoy your vacation there or rent it to other vacationers when you are not using it.
The rental income will be more than enough to pay the mortgage. If your vacation rental property is in a place like Myrtle Beach, South Carolina, where tourists flock to enjoy the mind-blowing beaches, you are in for a double win. Here is an overview of what factors you should consider before buying a vacation rental home in Myrtle Beach.
What Should You Keep In Mind before Buying a Vacation Rental?
One of the perks of buying a vacation rental property in Myrtle Beach is that you can expect a good rental income if you choose your property wisely. Investing in Myrtle Beach real estate can turn out to be the best decision in your life if you consider these factors before you buy- location, Homeowners Association fees (HOA), taxes, amenities, and property management.
Location of Your Property
Location is the prime factor to consider before buying a vacation rental property. Locations close to the beach and other entertainment hubs should be your first choice. Ensure your property is located in an area that is popular for short term rental so that you can rent out easily to vacationers. The location also can be a good indicator of the rental price you can charge and demand your rental property.
Oceanfront Vs. Ocean View Property
Most property owners or renters get tripped over these two terms. Oceanfront and ocean view property are not the same. You can buy oceanfront property, thinking you will get a nice view of the ocean, but you could be wrong. Make sure you buy a property close to the beach and have an unobstructed view of the ocean to get a great rental demand.
Homeowners Association (HOA) Fees
Homeowners Association is the regulatory body that has rules and regulations that all property owners have to follow. You have to pay a fee to HOA for insurance, amenities, or such. Before purchasing your property, consult your realtor to make sure you know what fees you have to pay. If you are not aware of the fees, you might get blindsided to spend more than you anticipated.
Property Taxes
When you buy a second property for investment purposes, you have to pay more taxes than the usual property tax. This amount can vary depending on the state or region. If you have a beachfront property in a high-risk zone, you have to pay a higher tax. You have to pay 6% taxes on average as a secondary resident in Myrtle Beach.
Property Management
Management of your secondary property can be a big issue if you live far away from it and hardly visit. If you can't ensure proper management, your rent price may go down. To assist with your property management, you can hire one of many property management companies in Myrtle Beach. Depending on their service offerings, these property management companies can charge anywhere from 10-50% of the total rental income.
Amenities for Your Property
If you are leaning on the business side of rental property, you should consider what amenities will attract renters. You can survey the popular amenities of other rental properties so that you can get a clear idea of what amenities are popular with vacationers. As vacationers aim for a relaxing time, you can pick a property with swimming pools, spas, saunas, or hot tubs.
Rules and Regulations
Vacation destinations are governed by laws and regulations that are different from a regular residential area. Rules can also vary depending on the location of your rental property. Before you invest, make sure you know all the specific regulations for property maintenance and rent. Violating renting laws can make you pay a stiff penalty.
Seasonal Trends
Tourism depends heavily on seasonal trends - which is especially true for beach destinations like Myrtle Beach. You can't expect the same traffic of vacationers all year round anywhere in the world. You should know how much rental fluctuation you can face with this seasonal variation. You can adopt a mix between short term and long term rental to get the most out of your property investment.
Marketing Strategy for Your Property
Investing in a vacation rental property can be futile if you don't have a marketing strategy. As you compete with other property owners and hotels, you must make your property more attractive with good marketing. You can have some online advertisements displaying the features that your rental property has to offer. Installing unique amenities to your rental can also be an excellent way to attract vacationers.
On a final note, investing in a vacation rental property in Myrtle Beach can be an excellent opportunity for you. However, it is not a decision that you can take on a whim. You have to go through a lot of research and consideration if you want it to be a serious investment. To understand the vacation rental industry, consult a good realtor. You can even discuss with other rental property owners to get a real scenario. Owning a vacation rental can also come with extra risks and responsibilities. There might be some renovation and maintenance costs involved. However, if you are willing to put in the effort required for investing in a vacation rental property, you can expect a great return and a future retirement home.
