You’re considering investing in an oceanfront condo in Myrtle Beach South Carolina, and you want to know if there’s an upside besides the potential projected profitability each year, tremendous appreciation over the past 10 years, and the equity that the 20-22 million tourists build in your rental property each year? Well, there is. There’s plenty of room to grow your occupancy, but how do you do that?
Currently, there’s plenty of room to increase the profitability of your rental property by increasing your annual occupancy, but first let’s see just how much room there is to grow so that we can also better understand how the size of the unit impacts its rental performance.
1 Bedroom Units Across All Property Types
The average 1 bedroom rental in our market across all property types averages 147 nights booked, which is 40% of the year, has a daily average rental rate of $113 and brings in between $16,117 and $24,464 each year in Gross Rental Income. 1 Bedroom rental properties make up around 30% of the Myrtle Beach South Carolina rental market.
How does that stack up to 1 bedroom Oceanfront Condos?
At the Landmark Resort for instance, an oceanfront condo with a single King-sized bed in 2023 brought in between $26,000 - $34,000, in Gross Rental Income with the highest rental at $38,500. That’s, on the low end, $9,883 less than you would have gotten by investing in an oceanfront condo at the Landmark Resort, not to mentioned $9,536 less on the higher end. And if your unit performed like Landmark’s highest unit of that type, that a difference of $14,036. One-bedroom Oceanfront Condos at the Landmark Resort run as low as $135,000 to $190,000.
2 Bedroom Units Across All Property Types
The average 2-bedroom rental in our market across all property types averages 146 nights booked, which is 40% of the year, has a daily average rental rate of $146 and brings in between $22,551 and $33,178 each year in Gross Rental Income. 2 Bedroom rental properties make up around 29% of the Myrtle Beach South Carolina rental market.
How does that stack up to 2-bedroom Oceanfront Condos?
At Beach Colony Resort for instance, an oceanfront condo 2-bedroom unit in 2023 brought in between $47,000 - $55,000, in Gross Rental Income with the highest rental at $72,250. That’s, on the high end of things, $24,449 less than you would have gotten by investing in an oceanfront condo at Beach Colony Resort. And if your unit performed like Beach Colony’s highest unit of that type, that a difference of $39,072. Two-bedroom Oceanfront Condos at Beach Colony Resort run as low as $242,000 to $290,000.
3 Bedroom Units Across All Property Types
The average 3-bedroom rental in our market across all property types averages 153 nights booked, which is 44% of the year, has a daily average rental rate of $200 and brings in between $31,781 and $46,083 each year in Gross Rental Income. 3 Bedroom rental properties make up around 17% of the Myrtle Beach South Carolina rental market. There’s not nearly as many 3-bedroom units in our market as the 1 and 2 bedroom oceanfront units, and when supply is lower, you can expect to pay more for these units.
How does that stack up to 3-bedroom Oceanfront Condos?
At Beach Cove Resort for instance, an oceanfront condo 3-bedroom unit in 2023 brought in between $69,000 - $71,000, in Gross Rental Income with the highest rental at $76,775. That’s, on the high end of things, $24,917 less than you would have gotten by investing in an oceanfront condo at Beach Cove Resort. And if your unit performed like Beach Colony’s highest unit of that type, that a difference of $30,692. Three-bedroom Oceanfront Condos at Beach Cove Resort run as low as $465,000 to $476,000.
4 Bedroom Units Across All Property Types
The average 4-bedroom rental in our market across all property types averages 145 nights booked, which is 42% of the year, has a daily average rental rate of $312 and brings in between $56,082 and $77,428 each year in Gross Rental Income. 4-Bedroom rental properties make up only 6% of the Myrtle Beach South Carolina rental market. There’s not nearly as many 4-bedroom units in our market as the 1, 2, and 3-bedroom oceanfront units, and when supply is lower, you can expect to pay more for these units.
How does that stack up to 4-bedroom Oceanfront Condos?
Unfortunately, we don’t currently have information on occupancy, and gross rental income on these units. However, 4-bedroom Oceanfront Condos run as low as $565,000 to as high as $1,275,000 with an average price of $759,960.
5 Bedroom Units Across All Property Types
The average 5-bedroom rental in our market across all property types averages 141 nights booked, which is 39% of the year, has a daily average rental rate of $402 and brings in between $64,611 and $97,526 each year in Gross Rental Income. 5-Bedroom rental properties make up only 3% of the Myrtle Beach South Carolina rental market. There’s not nearly as many 5-bedroom units in our market as the 1, 2, and 3-bedroom oceanfront units, and less than half the 4-bedrooms, when supply is lower, you can expect to pay more for these units.
How does that stack up to 5-bedroom Oceanfront Condos?
Unfortunately, we don’t currently have information on occupancy, and gross rental income on these units. However, 5-bedroom Oceanfront Condos run as low as $475,000 to as high as $2,450,000 with an average price of $1,065,687.
Which unit type should I invest in?
The top performers were a 3-bedroom unit that booked 272 nights and a 4-bedroom that had an average daily rate of $501.
Offer Vacation Packages to Increase Occupancy.
It’s simple. Just offer three different vacation packages to your tenants. One at $500, one at $1000, and one at $1500 and then fill those vacation packages with gift cards to the best restaurants, paid for attractions like shows, local events, and concerts, and even include more concierge options like rose pedals, bath robes, and gifts for him and her. You’ll most likely find that your tenants will be thrilled that you put this level of work into their vacation, they’ll gladly pay the convenience fee of each package, and most importantly, want to return year after year.
What’s this do for you? Repeat and Loyal Business.
You’re more likely to have satisfied and therefore repeat customers who will rent your property year in and you’re out, repeatedly. Two-things impact your rental business because of the yearly repeat tenants: you can successively build your Gross Rental Income (GRI) each year upon the next year—growing your book of business—and, due to the loyalty of your tenants, you may be insulated from the ups and downs of the rental market. In other words, if the rental market has a bad year overall, because your tenants are loyal, you may not see a significant reduction in Gross Rental Income. They very well could choose to cut expenses elsewhere in their budget because they just don’t want to give up their dream vacation, even when the economy struggles along.
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Call today to discuss your next Oceanfront Condo purchase in the Myrtle Beach Real Estate Market: 843-360-1737
Disclaimer: All information given is meant to be educational. I am only passing on historical information shared with me by owners, rental companies, and various publications. I am not guaranteeing these numbers, nor can I guarantee future rentals or appreciation. This information is not intended to replace your own research, or to provide legal, investment, or financial advice. Please consult an attorney for legal advice.