Name: How to Make Rental Income In Myrtle Beach
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How to Make Rental Income In Myrtle Beach

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Over 2,000 condos sold in Myrtle Beach in 2015. &nbsp;Leaving some investors, like yourself, to wonder “Is there money to be made”?? &nbsp;The answer is ABSOLUTELY! &nbsp;Before you read on, keep in mind, this blog is for serious investors that want to make 110% of their return on their rental income. &nbsp;There will not be ratings at the end of why The Camelot’s front desk wowed me. &nbsp;Or, “The Landmark front desk did a sensational job helping me figure out where the beach was”. &nbsp;This is for investors that want to grow and make a lot of rental income in Myrtle Beach.
Being a Myrtle Beach Realtor, I got a buyer call this week that motivated me to write this blog. &nbsp;The question was “How can I make money buying a vacation rental in Myrtle Beach”? &nbsp;This is a simple question to answer for some owners that have their own rental history and book of tenants. &nbsp;Their own techniques of what works for them; and what did vs. not work. &nbsp;May seem simple too if you own rental homes and condos in other states .
We are talking Myrtle Beach here people. &nbsp;The year here changes like the tide.
Simply put, time is money, playing the ‘we will figure it out later’ game can cost you a lot. &nbsp;It could also cost you a lot of stress. &nbsp;Lets avoid all this and break it down into some easy to follow steps that can and will make you a lot of rental money.
First things first, what is your budget to purchase your new condo? &nbsp;I strongly recommend and when I say strongly it is STRONG. &nbsp;I strongly recommend purchasing a condo in Myrtle Beach located on the beach. &nbsp;Sounds simple right? &nbsp;Get as close to the ocean as you can. &nbsp;No, the ocean is not for sale, but, if that’s how you’re thinking right now then you are doing good. &nbsp;If you can not afford a condo on the beach, i.e. ocean view, building located on the ocean, then read on.
I strongly recommend purchasing a condo in Myrtle Beach located on the beach.
There are ocean front resorts that offer ocean access within the resort. &nbsp;There are also ‘second row’ and ocean view condos available for less money. &nbsp;The quickest and easiest access to the ocean you can find will be your biggest return. &nbsp;MONEY. &nbsp;Remember the ancient rule of real estate? &nbsp;LOCATION!
This step also applies to golf courses. &nbsp;Myrtle Beach has over 100+ golf courses! &nbsp;These golfers bring their family and friends for some great outdoor golf and fun. &nbsp;Not to mention that the average temperature in Myrtle Beach is 70 degrees! &nbsp;Woohoo!
Secondly, now that you have your fabulous budget and location in mind its time to start looking at condos. &nbsp;A great Realtor, like myself, will send you condos based on your criteria and specifications. &nbsp;Price, desired location and beach access are all key here. &nbsp;Your Realtor will also help you with rental income and HOA fees. &nbsp;They will also point you to condos and resorts that are able to be rented ‘short term’ and ‘long term’. &nbsp;Once they work the numbers and send you great listings, the hunt has just begun.
“Why are these HOA fees so high”? &nbsp;I hear this question all the time. &nbsp;How does my Realtor help with these HOA fees? &nbsp;They are not going to pay them for me? &nbsp;Not to worry, as you will be bringing in so much rental income after this blog, that you will see these more as a convenience and amenity fee than a hassle. &nbsp;Since some HOA fees include your insurance and utility’s. &nbsp;Some also have AMAZING amenities. &nbsp;You don’t want to be stuck cleaning the resort’s pool do you? &nbsp;You have money to make with your rentals! &nbsp;HOA fees are your biggest expense and do affect your bottom line. &nbsp;It is important to factor in HOA fees with your search.
You don’t want to be stuck cleaning the resort’s pool do you?
The best way to determine if the HOA fees are right for you. &nbsp;Have your Realtor show you&nbsp;the GRI. &nbsp;Gross Rental Income. &nbsp;Gross, like before taxes, is similar to this concept. &nbsp;However, gross from a rental standpoint, is before any rental fees, maintenance charges, house cleaning charges, AND&nbsp;taxes. &nbsp;The best part is owners that have rented in the past will share these great numbers with you!
Gross Rental Income. &nbsp;Gross, like before taxes, is similar to this concept.
Take the GRI of a couple of condos in buildings or resorts you are considering. &nbsp;Once you figure up a safe average GRI for a building or resort (based on the most recent year and comparable condos i.e. bedroom count, size, view etc.) deduct the HOA fees. &nbsp;Do you feel this is the best and&nbsp;greatest return on your money annually? &nbsp;Do you feel that the HOA fees are on the high end for this building vs. the other building or resort? &nbsp;Maybe the HOA fees sell the rentals for this building or resort? &nbsp;Family friendly, security and amenities are all selling points when you start your search for tenants.
HOA fees are important to consider for your bottom line. &nbsp;And they vary greatly, playing your cards right, these will be your biggest expense when renting. &nbsp;I promise and&nbsp;I will help you max out your rental income with the next steps. &nbsp;But, remember, I will not lower your HOA fees. &nbsp;Remember, HOA fees do usually go up. &nbsp;The HOA company can provide a list of the past 5-10 year HOA fees so you can see the trend and if and how much the fees have increased over time.
The biggest money maker in Myrtle Beach rentals is weekly rentals. &nbsp;These are predictable, planed and you can get a deposit. &nbsp;Some tenants will plan their week long trip to Myrtle Beach a year in advance! &nbsp;How convenient is that for you?
Next question is “What are rental fees”? &nbsp;Oh boy, more fees and we are still not to the end of the blog! &nbsp;Ha ha, not to worry. &nbsp;Rental fees are the fee charged to you for the simple concept of renting your condo. &nbsp;The rental company will do mostly all of the owner rental work for you. &nbsp;There are rental companies that can charge a low fee of 10%-20%. &nbsp;Some are located onsite, meaning a check in desk on site. &nbsp;These onsite rental companies may charge 40%-60%. &nbsp;Again, these fees are something to take into account for how much you want to profit. &nbsp;These rental fees are something to consider. &nbsp;Not only for convenience, but for your bottom line. &nbsp;If you are considering a rental company than check them out. &nbsp;They are not bad and will tell you what are you getting for the 40% rental fee. &nbsp;You may think it is worth it. &nbsp;Is this something you are comfortable paying or would you feel more comfortable renting yourself? &nbsp;If you want the real MAX for your income read on.
VRBO.com is a great alternative to save you lots of bucks. &nbsp;Do keep in mind that their site has Q&amp;A’s to what their online process involves. &nbsp;You can also start your own website. &nbsp;If you are considering this route, self managing, this blog was written just for you.
Now that all the bottom line fees are out of the way lets start making some money. &nbsp;So, you got your great condo, great location and great amenities. &nbsp;How do I start making that great annual income? &nbsp;Remember when I said that the Myrtle Beach rentals change with the tide? &nbsp;Keep this in mind as you read down further to the good stuff.
How do I start making that great annual income?
Myrtle Beach is historically a tourist town. &nbsp;We all know this, but the busy months start in March and April and really pick up at the end of May. &nbsp;June, July and August are your HOT, HOT, HOT months! &nbsp;Not just because of the temperature! &nbsp;Don’t forget your holidays and Myrtle Beach festivals too! &nbsp;Memorial week, 2 bike weeks, 4th of July and lastly Labor Day.
March, April and the beginning of May are the start to the Summer season in Myrtle Beach. &nbsp;You still have Easter week, but these months are relatively a little slower with the weekly rentals vs. your Summer months. &nbsp;But, I have great news for you. &nbsp;You can still make money and lots of it these months with your weekly rentals. &nbsp;Just don’t charge as high of a rental fee. &nbsp;The end of May is usually Memorial Week. &nbsp;This week you can charge more than the previous!
June, July and August are your HOT, HOT, HOT months!
What does this mean? &nbsp;This means that you, the smart investor willing to take risks and do your own rentals, can CHARGE MORE. &nbsp;Yes, that’s right MORE, MORE, MORE. &nbsp;During the peak months you can absolutely charge more per week than any other months. &nbsp;4th of July week you can charge the most! &nbsp;Did you know that there are time shares that sell for over $20,000+ just to have the 4th of July week and stay on the beach in Myrtle Beach?? &nbsp;This does not mean you can charge $20,000 for one 4th of July weekly rental in your fabulous condo. &nbsp;Lets not get crazy here. &nbsp;But, you can definitely charge more than any other week.
The Labor Day Week is usually the last of the HOT weeks and HOT, HOT, HOT months. &nbsp;Meaning you will want to start looking for a more long term renter in the coming months. &nbsp;Yes, this may sound crazy, but the only way I can get you MAX RENTAL $$$&nbsp;a year is to rent your condo out until you run out of weeks to rent. &nbsp;More rentals = MORE MONEY.
More rentals = MORE MONEY.
So, what is the name for this 3-4 month rental exactly? &nbsp;Have you ever heard of a ‘snow bird’? &nbsp;How about a short term lease? &nbsp;Short term lease is a month to month lease. &nbsp;The tenant can move in on October 1st, pay a monthly rent to you and move out at the end of February. &nbsp;Why do this you ask? &nbsp;Historically, Myrtle Beach has high traffic during the late Spring into the late Summer months. &nbsp;Do you want to take the risk of having an empty condo? &nbsp;What about those HOA fees? &nbsp;Too, this type of rental is actually pretty common in Myrtle Beach.
I’ll give you a diagram to help. &nbsp;Say you buy a condo on the Ocean that the GRI for 2015 was $12,000.00. &nbsp;The HOAs are low, about $350 a month, and those HOAs include your main utility bills and insurance. &nbsp;Good deal! &nbsp;Lets break it down to a realistic rental plan over what we just went through:
March 2016- 4 full weeks available. &nbsp;2 rentals @ $500.00 a week. &nbsp;Not bad
April 2016- 4 full weeks available. &nbsp;3 rentals @550.00 a week. &nbsp;See what I’m doing?
May 2016- 4 full weeks available; Mothers Day, 2 bike weeks and Memorial Day! &nbsp;Oh yeah now its good. &nbsp;2&nbsp;rentals at $600.00 a week, Harley bike week $700.00 and Memorial week $800.00 a week. &nbsp;Why more? &nbsp;Because, Memorial week is historically a NO VACANCY week in Myrtle Beach.
&lt;If your HOA does not permit motorcycles make sure to disclose this to your tenants&gt;
June 2016- 4 weeks available; children out of school, Summer has come! 3 rentals @ $700.00 a week.
July 2016- 4 weeks available and the 4th of JULY! &nbsp;3 rentals at $800.00 a week and 4th of July week $900.00 for the week. &nbsp;That’s a great month!
August 2016- 4 weeks available. 3 rentals at $800.00 a week
September 2016- 5 weeks available and Labor Day week! &nbsp;3 rentals @ $700.00 a week and $800.00 for Labor Day week.
October 2016- Short term ‘snow bird’ tenant @ $700.00 a month
November 2016- Short term ‘snow bird’ tenant @ $700.00 a month
December 2016- &nbsp;Short term ‘snow bird’ tenant @ $700.00 a month
January 2017- &nbsp;Short term ‘snow bird’ tenant @ $700.00 a month
February 2017- &nbsp;Short term ‘snow bird’ tenant @ $700.00 a month
That’s how its done in a nut shell! &nbsp;These figures are assumed as 2016 numbers and based on a $100,000 ocean front condo in Myrtle Beach. &nbsp;They do not count in the HOA fees, taxes or other owner expenses. &nbsp;These are conservative numbers and assumed. &nbsp;These numbers can definitely be higher based on more rental weeks taken and a higher weekly rent.
These are conservative numbers and assumed.
Considering the 2015 rental year from previous owner/ rental management company was a lot lower &lt;$12,000.00&gt;. &nbsp;These rentals total $20,350.00 and they do not include all of the weeks having a tenant. &nbsp;I also kept the rental amounts conservative based on the condo purchase price.
I do have are a pocket full of investors and the knowledge of the Myrtle Beach area. &nbsp;The most successful owners that max out their rental income every year are doing these very same rental strategies.
I do have are a pocket full of investors and the knowledge of the Myrtle Beach area.
You may think, this is so easy, this is what hotels do. &nbsp;These are realistic numbers and can be achieved very simply. &nbsp;Your first year will be the hardest, especially if you are a newbie to this. &nbsp;Keep plugging away those rentals and rent as many weeks as possible.
Your first year will be the hardest, especially if you are a newbie to this.
Not sure what to charge? &nbsp;Take a look online. &nbsp;How much are other condos renting for in your same complex? &nbsp;Play with the dates. &nbsp;Know your competition and keep rentals coming through. &nbsp;The more rentals the better chance to increase your bottom line and make that rental Myrtle Beach MONEY. &nbsp;Good luck!

Over 2,000 condos sold in Myrtle Beach in 2015. &nbsp;Leaving some investors, like yourself, to wonder “Is there money to be made”?? &nbsp;The answer is ABSOLUTELY! &nbsp;Before you read on, keep in mind, this blog is for serious investors that want to make 110% of their return on their rental income. &nbsp;There will not be ratings at the end of why The Camelot’s front desk wowed me. &nbsp;Or, “The Landmark front desk did a sensational job helping me figure out where the beach was”. &nbsp;This is for investors that want to grow and make a lot of rental income in Myrtle Beach.
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