Hillside Condos (North Myrtle Beach) – STR Performance & Investment Guide

Market Performance (2023–24): North Myrtle Beach short-term rentals are steady. Data from AirDNA and Airbnb analytics show ~57–58% average occupancy. Median ADR is roughly $190–$200 on Airbnb (combined VRBO/AirDNA data implies overall ADR near $276–$340). Typical annual revenue per condo is ~$30K–$40K (Airbtics cites ~$39K median). Based on local comps (e.g. Buena Vista Plaza), estimated gross rental incomes are on the order of $20–30K for a 1BR, $30–40K for a 2BR, and $45–55K for a 3BR. After HOA fees, management/cleaning commissions, insurance and taxes (~30–40%), net operating income is typically 60–70% of gross. (For example, a 1BR grossing $25K might net ~$15K, ~6–7% cap rate on a $225K buy.)

Seasonality & Trends: Rental demand peaks in summer (Jun–Aug). Peak-season occupancy often hits 80–90%+ (e.g. week-long July bookings are common). Spring/Fall shoulder season sees moderate occupancy (weekends/festivals busy), while winter short-term occupancy drops (many owners switch to month-long “snowbird” leases). Correspondingly, ADR spikes in summer – e.g. 1BR units ~$175–$250/night and 3BR $300–$400/night in peak months – and falls in winter ($80–$120/night). Annualized, local STR occupancy averages ~55–62% (a bit above Myrtle Beach hotel averages), with ADR ~$120–$130 (Myrtle Beach area average). From 2022 to 2023 the market saw modest growth: occupancy +3–4% and ADR +3–5% YoY. (For reference, a market report notes July as peak revenue and December as lowest.)

Guest Satisfaction (Airbnb/VRBO/Booking): Hillside units generally earn positive reviews for location and amenities. Guests repeatedly praise the proximity to the beach/Main Street and the pool. For example, one VRBO guest raved “We enjoyed the pool and location”, and another noted “Location is great… Being close to the beach was the best”. Booking.com summaries echo this, highlighting “beach access, convenient location, and cleanliness” as guest favorites. In practice, common themes are excellent location, well-maintained interiors, and convenient beach access. Any negatives are minor (some guests have reported occasional cleanliness/maintenance issues – e.g. a comment about a “disgusting” sofa – but most are resolved and rebookers are common). In nearby oceanfront complexes (e.g. Buena Vista Plaza), reviewers consistently score units 9–10/10 for cleanliness, comfort and location, suggesting Hillside’s guest sentiment is similarly strong given its prime setting.

Comparative Performance: Compared to oceanfront towers, Hillside (a second-row Ocean Drive property) may see slightly lower ADR but similar occupancy. Oceanfront resorts in NMB (like Buena Vista or Dunes Village) often command the top rates and occupancy. For context, Buena Vista’s oceanfront units achieve ~$120–130 ADR on average, with summer rates far higher. Hillside’s ocean-view units, two blocks inland, typically rent at a modest discount to these oceanfront benchmarks. However, Hillside’s location on Main Street offers a quieter, family-friendly appeal. In North Myrtle Beach overall, vacation condos average ~57–58% occupancy; similarly, Hillside units can expect 50–60%+ occupancy annually. (By contrast, more distant inland condos often struggle below 50%.) The building’s smaller size and amenities (pool, barbecues) help it compete. Overall, Hillside’s STR performance is on par with other second-row Ocean Drive properties and comfortably above inland figures, though a notch below the very top-tier oceanfront towers in RevPAR.

HOA Fees & Policies

Hillside Condos’ HOA dues are ~$650–$700/month for a 2BR (≈$7,800–$8,400/year). These “all-inclusive” dues cover most common-area expenses (grounds, pool, water, sewer, trash, cable, internet, building insurance, etc.). For investors this means fewer separate bills (the HOA pays for things like Wi-Fi, water and hazard insurance), but the high dues do significantly affect net yield. Owners must carry their own condo/unit insurance for interior and liability.

Key HOA rules affecting rentals: short-term renting is allowed (no owner-occupancy rule appears in listings). The association does list “Pet restrictions”, so most large dogs/pet types are not permitted (confirm with HOA bylaws, but expect only small or no pets). Parking is limited – typically one assigned space per unit plus street parking (golf carts are explicitly allowed for owners, which aids mobility). The HOA prohibits disruptive activities (e.g. no house parties, no motorcycles) and requires responsible tenant conduct. These rules (and often a minimum rental term of 7 nights) help maintain a family-friendly environment. In summary, Hillside’s HOA lets investors run STRs, but be mindful of HOA dues (~$690/mo for 2BR), pet limitations, one-car parking limits, and the need for renters’ insurance.

Tax-Efficient Strategies

Savvy investors should use tax strategies to maximize returns. A 1031 exchange lets you sell another property and defer capital gains taxes by reinvesting in Hillside (must follow IRS like-kind rules). This preserves wealth for growth: instead of paying tax on the gain, you roll it into the new condo purchase, deferring tax indefinitely. Another option is buying via a self-directed retirement account. Both self-directed IRAs and 401(k) plans (Roth or traditional) can hold real estate. The benefit: rental income and appreciation accrue inside the retirement vehicle, tax-deferred (or tax-free if Roth). (However, the IRA must pay all expenses from account funds, and IRS rules apply on property use.) Using these vehicles, U.S. investors can shield rental profits from current taxation – a powerful compounding tool.

Airbnb/VRBO Optimization Tips

To maximize revenue at Hillside condos, adopt best practices for pricing, listings and guest service:

• Dynamic Pricing Strategy: Adjust rates based on seasonality and demand. Use tools (Airbnb Smart Pricing or third-party apps) to raise prices on summer weekends/events and lower them during slow periods. Ensure your base price is competitive for the unit size and adjust for holidays, conventions or local events. (In practice, a rule of thumb is to set a higher weekday premium in summer and discounted mid-week in winter.)

• High-Quality Listing: Stand out with professional photos and a compelling title/description. Highlight unique features (e.g. “2BR w/ ocean-view balcony, pool access, 2 blocks to beach!”) and the upgraded amenities. Keep the calendar accurate and up-to-date (Airbnb favors active listings). Emphasize guest favorites (fast Wi-Fi, AC, parking, etc.) to capture search filters. Explicitly state any perks (pool, golf cart storage, etc.) and clarify rules (no pets, quiet hours). Actively solicit reviews: more 5-star feedback boosts your ranking and booking rate.

• Guest Communication: Be responsive and personal. Respond to inquiries within minutes to lock in bookings. Send a warm pre-arrival message with check-in details, entry code and local tips. Provide an easy check-in (smart lock or lockbox) and clear instructions. During the stay, check in once (e.g. welcome text) to ensure everything’s fine and to handle issues early. After check-out, thank guests and encourage a review. Quick, friendly communication leads to better reviews and repeat bookings.

• Cleaning & Turnover: Hire professional cleaners and use a strict checklist. High cleanliness is one of the top factors in reviews. Prepare the unit meticulously between guests: replace linens, disinfect surfaces, restock toiletries and check all appliances. Consider mid-stay clean for month-long stays. Inspect after each departure (staff or manager) to spot damage immediately. Scheduling back-to-back turnovers on busy weekends is crucial – ensure you have backup cleaning so bookings don’t overlap.

• Prompt Review Management: Encourage positive reviews by delivering five-star service, and acknowledge feedback. Monitor incoming reviews on all platforms. Thank guests publicly for compliments, and address any issues privately/offline. Fix any recurring problems noted in feedback (e.g. add more kitchen supplies if mentioned). Highlight recent upgrades or praise in your listing to show progress. Good reviews improve visibility and justify higher rates.

Summary: Investors in Hillside Condos can expect solid STR returns comparable to other Ocean Drive properties. Occupancy in the 50–60% range and ADR in the $150–$200 range (depending on unit size) are achievable. Gross income roughly $20K–55K by unit size, with net ~60–70% after expenses. The HOA allows rentals (no major restrictions beyond pet/parking rules) but has substantial dues. By leveraging 1031 exchanges and retirement funds, investors can enhance tax-efficiency. Finally, polished pricing, listing, and guest management strategies will boost occupancy and income. In combination, Hillside Condos offers a turnkey coastal investment with reliable demand, making it attractive for rental-focused buyers.

Sources: Market and review data from AirDNA/Airbtics; STR performance from OceanfrontCommercialGroup analyses; guest feedback from VRBO/Booking reviews; HOA details from listing data; tax strategy references; and expert rental tips.

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.