Myrtle Beach Oceanfront Property : Rental Income
Myrtle Beach oceanfront property is an attractive option for many people looking to get into the real estate market. It’s one of the most affordable places in the United States to own rental property. Affordable rental property doesn’t always mean making a profit, however. There are some other aspects of owning a rental that should be considered before making a decision.
First thing to consider before making the purchase is the fees associated with owning a rental property. Home owners associate (HOA) fees can be steep in some Myrtle Beach neighborhoods, and these must be paid even during the weeks or months that the property is not rented.
Management fees and insurance costs are two additional fees that can eat into the profits from your rental income. Although management fees have dropped to an average of 10-20 percent of the rent charged on a property, they still need to be examined carefully. Also make sure that those management fees include all customer service fees, maintenance fees, and housekeeping charges. Unexpected fees from management expenses can be an unpleasant surprise that will quickly devour your profits.
Oceanfront property that is also rental property will likely be subject to costlier insurance requirements, as well. Be sure to check with your local insurance agent to find out exactly what types and limits of insurance you must maintain on your property and figure these costs into your rental prices.
Expenses are only part of what impacts rental income if you choose to invest in oceanfront real estate in Myrtle Beach. Many people also want to take advantage of the rental properties they own for their own vacation and relaxation. Keep in mind that any time you spend in your rental is time that someone else isn’t paying you stay there. Plan personal use of your rental property during the quieter “off season” when the number of visiting tourists is lower. Reserve holidays, like Independence Day, Memorial Day and Labor Day, for paying visitors as these are often weekends when you can earn a premium on your rental charges.
Purchasing Myrtle Beach oceanfront property for rental income makes a lot of sense given the popularity of our beaches and the affordability of the real estate compared to other vacation destinations. Just remember, when you’re looking at how to turn that investment into profit, view your expenses from all angles so there are no unexpected surprises in the future, and plan your personal visits to the property during the off season when you’re not taking away from potential rental income.