Vacation rental company

Member since 2024 · 23 posts · 10 votes

Looking a purchasing a condo in the myrtle beach area. The unit I'm looking at has a vacation rental company that manages the rental. From what I've been told all the condos in the building are put into a rotation, when you unit is rented you get bumped to the back of the line and then rebooked. To me this seems like you are missing out of a lot of revenue. Would i be able to use air bnb to rent out the days where the rental company does not have my unit rented out? Does anyone have any experience with the vacation rental company's.

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Adam WindhamPro Member

Lender · San Diego | Phoenix | Miami · Member since 2019 · 39 posts · 65 votes

Request a copy of the CCR's from the HOA/Condo Association so you can read exactly what is or is not permitted.

[email protected]619-304-9507

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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
2y
You need to check with the PM company to see what they allow.
I'd not do this because:
You have to wait your turn for a booking.
You are at their mercy as far as rules and fees.
Regime fees and special assessments can kill your net income.
A SF beach house will make more money without the HOA fees.
Condos are a dime a dozen in Myrtle Beach so you can rent one cheap due to all the competition.
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Adam WindhamPro Member
Lender · San Diego | Phoenix | Miami · Member since 2019 · 39 posts · 65 votes
2y
Request a copy of the CCR's from the HOA/Condo Association so you can read exactly what is or is not permitted.
[email protected]619-304-9507
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Nancy DeSocio
Rental Property Investor · Cranston, RI · Member since 2017 · 171 posts · 158 votes
2y
Hey Greg,

Others with experience will chime in as well, but I'll add my view. We own one of these units in MB and use the onsite management company. The rotation you describe is accurate for our building. If you are looking for control of your property to maximize returns, you will need to manage it yourself and confirm with the existing HOA what you can and cannot do (and what services your guests can and cannot access if you manage it). Your strategy will depend on your goal. Our goal was to have a vacation home to use a few times per year and weren't looking for profit, so it has absolutely served its purpose for us. If you use onsite PM, don't plan on buying a yacht with your earnings :)
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Michael BaumPro Member
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
2y
Not my cup of tea @Greg Strunak. I avoid these sorts of things as I like having control of my property.
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Nathan M kiefer
Rental Property Investor · south carolina and michigan · Member since 2023 · 348 posts · 226 votes
2y
We own two stilt houses in Myrtle, never would do this as we self manage. If your already asking that question, I wouldn't consider doing it with a pm but obviously everyones personal preference
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Alexander Knowles
Real Estate Agent · North Myrtle Beach, SC · Member since 2018 · 110 posts · 99 votes
2y
You'll need to check with the building and HOA that you can choose your own management company or self-manage. If you sign an agreement with a management company, then no, you will most likely not be able to rent it out on days when the rental company does not have it rented.
There are some pros and cons to going with the internal/on-site management company. You typically get more bookings (go figure) but also pay a higher management fee.
Condos are a dime-a-dozen right now. Seems to be an oversupply of inventory on the market. Tread carefully wherever you buy as there are unforeseen HOA management risks in addition to the special assessments for delayed maintenance and building insurance skyrocketing.
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Andrew SteffensBusiness Member
Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
2y
For all the reasons listed above, I would reconsider to a Single Family Home, preferably with no HOA.
[email protected]813-563-0877
Vacation Rentals of Florida53 Reviews
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Myrtle Mike ThompsonBusiness Member
Realtor · Myrtle Beach, SC · Member since 2016 · 352 posts · 204 votes
2y
@Greg Strunak If you're looking to purchase a condo in the Myrtle Beach market I highly encourage you to align yourself with an investor-friendly agent who is experienced in dealing with oceanfront vacation property. There are dozens of properties/resorts along the Grand Strand and they all have their own guidelines and quirks. A good agent will shrink your learning curve and help you avoid potentially very expensive pitfalls.
To answer your question, the onsite management companies charge a 30-45% management fee and you just simply will not see any positive cash flow if you go that route. The vast majority of buildings will allow you to self-manage (AirBNB/VRBO) or use a third-party management company to oversee operations. However, doing so may result in your guests not having access to certain amenities... again, depending on the building's guidelines. Managing on your own can be good for your bottom line but you have to factor in the time commitment. If you don't want to give yourself a part-time job, I would consider using a local management company not affiliated with the building. The companies I partner with and refer my clients to charge 15-20%. They take care of bookings, cleanings, guest interactions, everything... so it can be more of a passive investment if that's what you're looking for. Also, if you're looking to leverage a loan for your purchase, it is absolutely imperative that you use a local lender for oceanfront property. I have several I could refer you to. Feel free to reach out if I can help.
[email protected]843-999-2301
Myrtle Mike Real Estate581 Reviews
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Ray J.
SC · Member since 2020 · 66 posts · 42 votes
2y
@Greg Strunak I have Myrtle Beach condos that I use for STR and Mid term rentals. I have them managed through a great 3rd party management company who does a great job! Feel free to DM me and I'd be happy to share more details.
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Vittorio Valarezo
Member since 2024 · 2 posts · 0 votes
2y
Quote from @Ray J.:

@Greg Strunak I have Myrtle Beach condos that I use for STR and Mid term rentals. I have them managed through a great 3rd party management company who does a great job! Feel free to DM me and I'd be happy to share more details.

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