Getting creamed in North Myrtle Beach

Myrtle Beach, South Carolina
General Landlording & Rental Properties
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Getting creamed in North Myrtle Beach

Jeff EbertPro Member
Member since 2023 · 54 posts · 20 votes

Hi

this is my third year Hosting in North Myrtle Beach (remotely from Chicago).   The last two years, my occupancy rate has dipped below 30% and I'm trying to figure out if this is a common thing in that area or what I might be doing wrong. The reviews have been quite good... so it's not that.
I'm considering selling because I'm not covering my mortgage with the rentals anymore.  I've even considered hiring management in case they can help get the numbers up.  Is anyone else struggling with short-term rentals in this area?

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Michael Eskenasy
Investor · Pacific Northwest · Member since 2026 · 538 posts · 302 votes
3w

Jeff — before you sell it or hand 20–30% to a manager, I’d diagnose the actual failure point.

“30% occupancy” by itself doesn’t tell you enough. I’d pull the last 24 months and look at four things: occupancy, ADR, RevPAR, and booking lead time — then compare those against a tight comp set of properties that a guest would realistically choose instead of yours.

That will tell you very quickly whether you have:

  1. a demand problem,

  2. a pricing problem,

  3. a listing/conversion problem, or

  4. a property that simply doesn’t compete well enough anymore.

Good reviews eliminate one variable, but they don’t eliminate the others.

I’d also look hard at the calendar. Are you getting crushed only in shoulder/off-season months, or are you underperforming during periods when comparable properties are filling? Those are two completely different problems.

And I would not hire management just because occupancy is low. A manager only makes sense if you can identify something they can actually improve enough to cover their fee. Ask them to show you what they believe your property should produce, what comparable units they already manage are producing, and exactly what they would change. If they can’t quantify that, you’re just adding another expense to an already struggling asset.

Before selling, I’d run three cases side by side:

Current operation
Professionally managed STR
Sale / alternative rental strategy

Then make the decision from the numbers, not from the frustration.

At 30% occupancy, something is definitely worth investigating — but I wouldn’t assume yet that the property itself is the problem.

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  • Michael Eskenasy
    Investor · Pacific Northwest · Member since 2026 · 538 posts · 302 votes
    3w

    Jeff — before you sell it or hand 20–30% to a manager, I’d diagnose the actual failure point.

    “30% occupancy” by itself doesn’t tell you enough. I’d pull the last 24 months and look at four things: occupancy, ADR, RevPAR, and booking lead time — then compare those against a tight comp set of properties that a guest would realistically choose instead of yours.

    That will tell you very quickly whether you have:

    1. a demand problem,

    2. a pricing problem,

    3. a listing/conversion problem, or

    4. a property that simply doesn’t compete well enough anymore.

    Good reviews eliminate one variable, but they don’t eliminate the others.

    I’d also look hard at the calendar. Are you getting crushed only in shoulder/off-season months, or are you underperforming during periods when comparable properties are filling? Those are two completely different problems.

    And I would not hire management just because occupancy is low. A manager only makes sense if you can identify something they can actually improve enough to cover their fee. Ask them to show you what they believe your property should produce, what comparable units they already manage are producing, and exactly what they would change. If they can’t quantify that, you’re just adding another expense to an already struggling asset.

    Before selling, I’d run three cases side by side:

    Current operation
    Professionally managed STR
    Sale / alternative rental strategy

    Then make the decision from the numbers, not from the frustration.

    At 30% occupancy, something is definitely worth investigating — but I wouldn’t assume yet that the property itself is the problem.

    2Reply
    • Jeff EbertPro Member
      OP
      Member since 2023 · 54 posts · 20 votes
      3w

      @Michael Eskenasy thank you so much for taking the time to explain the potential issues!

      these are all good points that I have not looked into.

      I let Price Labs set pricing without checking the competition for myself.  I'll start there

      0Reply
  • Jim Johnson
    Real Estate Agent · Memphis · Member since 2026 · 558 posts · 324 votes
    3w

    I don’t have firsthand experience with North Myrtle Beach, but I’d be curious what owners with similar properties there are seeing too. If you’ve been under 30% occupancy for two years while still getting good reviews, I’d want to compare your numbers against very similar properties in the same area before deciding to sell. That should help separate a market problem from something specific to the listing, pricing, or management.

    0Reply
  • Jules Aton
    MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
    3w

    It might be worth moving this to STR section and hooking up with @MyrtleMikeThompson.

    0Reply
  • Kate Sanchez
    Member since 2025 · 244 posts · 98 votes
    3w

    @Jeff Ebert Managing a remote STR in North Myrtle Beach from Chicago is tough. An occupancy rate under 30% is a major red flag for that market, but since your reviews are solid, the property isn't the problem - it's likely your pricing strategy or search visibility. Before selling, try dynamic pricing tools like PriceLabs or consult a local property manager to boost bookings and cover your mortgage. Wishing you the absolute best of luck with whatever you decide!

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  • Jonathan Benitez
    Member since 2025 · 11 posts · 1 vote
    3w

    Jeff lets connect, i'd like take a look at your asset and see whats going on with your operations. Occupancy dipping like this has a serious issue on investment strategy. Lets talk through it if you're open to it

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  • J CastroBusiness Member
    Lender · Florida · Member since 2025 · 684 posts · 242 votes
    3w

    This is a good example of why lenders and investors have to look beyond the property’s historical performance when evaluating an STR.

    A sub-30% occupancy rate for two consecutive years is definitely something I’d want to understand before making a decision to sell or refinance. Good reviews are important, but they don’t necessarily overcome issues with pricing, seasonality, competition, property positioning, or local STR supply.

    From a lender’s perspective, I’d look closely at the property’s current NOI, actual trailing-12-month performance, debt service, and—most importantly—what the property can realistically support under a more conservative income assumption.

    Before selling, it may be worth having an experienced local STR manager perform a true market analysis. If professional management can materially improve revenue, that could change the equation. If the numbers still don’t work after optimizing the operation, selling may ultimately be the better investment decision.

    The key is not to throw good money after bad simply because you already own the property. Let the current numbers—not the original projections—drive the next decision.

    As a lender, I’d much rather see an investor make that determination before taking on additional debt. A strong exit strategy starts with realistic numbers.

    JCREIG Capital Funding
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  • Aaron Elias
    Member since 2026 · 1 post · 0 votes
    3w

    North Myrtle’s had a lot of new supply the last few years, so good reviews alone won’t protect occupancy if pricing and pacing aren’t tuned.

    Two quick things I’d sanity‑check before you sell:

    1) RevPAR vs your mortgage and HOA/utilities, not just ADR, and

    2) booking pace one month out on 5–10 true comps.

    If your RevPAR is lagging the comp set, a few levers usually move the needle fast: reset base rates for shoulder season, tighten weekend premiums, relax midweek minimums, and add last‑minute rules to capture shorter booking windows.

    0Reply
  • Myrtle Mike ThompsonBusiness Member
    Realtor · Myrtle Beach, SC · Member since 2016 · 350 posts · 204 votes
    3w

    @Jeff Ebert Shoot me a message with the property address and a link to your booking page and I'll gladly provide you with some feedback.

    [email protected]843-999-2301
    Myrtle Mike Real Estate580 Reviews
    WebsiteView Page
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  • Henry Lazerow
    Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    3w

    I had an airbnb with above average occupancy not there but actually in Chicago. I achieved this through very dynamic pricing. My weekdays would often be much lower then the competition at half what I would charge for Fridays and weekends. Holidays could be triple the price of a normal weekday, etc. 

    1Reply
    • Jeff EbertPro Member
      OP
      Member since 2023 · 54 posts · 20 votes
      3w

      Thank you Henry!

      0Reply
  • Dan H.Pro Member
    Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
    3w
    Quote from @Jeff Ebert:

    Hi

    this is my third year Hosting in North Myrtle Beach (remotely from Chicago).   The last two years, my occupancy rate has dipped below 30% and I'm trying to figure out if this is a common thing in that area or what I might be doing wrong. The reviews have been quite good... so it's not that.
    I'm considering selling because I'm not covering my mortgage with the rentals anymore.  I've even considered hiring management in case they can help get the numbers up.  Is anyone else struggling with short-term rentals in this area?


     My views is if self managed income does not cover the mortgage, you are so short of having a profitable operation I question if it is even worth trying to increase revenue.

    Note: 

    - PM duties likely warrant 20% of rent and note this is resulting in a not great compensation for the job.

    - utilities add up,   I assume you offer fast WiFi, gas And electricity, water and trash.
    - furnishings and supplies have lifespan.  Granted some supplies the lifespan is their disappearance rate.   
    - OTA setup.

    - local fees/taxes

    Let's say you increase revenue 25%, is this a good STR? I would claim it is not. You almost certainly are cash negative if properly allocating for the effort of managing. What about 50% increase of revenue. You hopefully are cash positive, but owning STRs have risks. In 2020, my market shut down STRs for most of the year. In the GFC, occupancy in the off season went to near 0 in my market. We converted to LTR in the off season. Then there is what profit do you expect for the investment, work, and risk? My goal is to recover investment in no more than 4 years. Do you see a scenario where you can recover your investment in anywhere close to 4 years? 5 years? 6 years? Note sp500 has near 10% lifetime return. 10% return recovers investment in just over 7 years. Sp500 is passive. Residential RE should recover investment significantly quicker than sp500 historical return would achieve. Note I have not found it challenging to achieve returns far in excess of the sp500 lifetime return.

    Unless you have a value add you have not disclosed or expect appreciation to far exceed inflation, I would look to sell.

    Good luck

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    • Jeff EbertPro Member
      OP
      Member since 2023 · 54 posts · 20 votes
      3w

      Thank you Dan I appreciate the honesty. It seems (via AirDNA) that most of the 2 bed 2 baths just off the ocean are barely reaching $20K now. I think my expectations are too high for this market at the time. I agree with you-I could fix it up to be more upscale, but I don't think I will clear what I owe!

      0Reply
  • Dave FosterBusiness Member
    Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
    3w

    @Jeff Ebert  start with the "Why" of why you want to sell.  Then find the course/type/location of real estate that answers that.   if you aren't looking to exit RE entirely,  do a 1031 exchange if the property doesn't start producing. A 1031 exchange allows you to defer all of the capital gains taxes and depreciation recapture and reinvest in any type of investment property in any state. 


    If the "why" is a saturated market or a deficient house, you can change that but keep all of the profit working for you.  And because you can allocate the proceeds from the sale however you want, you can reinvest in multifamily or multiple smaller single-family properties in a better market or closer to home if you want.  Whatever type of property answers the "why" sell now question.

    The 1031 Investor5137 Reviews
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