Vacation rental - near the water

[Dave Rav]

Hi BP network! I'm considering investing in a 3BR property (home) near the coast. However, it's not directly waterfront. It's approximately 12 minute drive to the beach, and 4 minute drive to the river/marsh. We're talking coastal SC. My goal is ST vacation rental.

Question is: How far away from the water is considered "too far" for vacay rentals? I don't mind lowering my rent, as compared to the beach front RE. No problem. My concern is location - is this too far to draw clients and maintain occupancy/bookings??

[Glenna Wood]

"Too far" is completely location dependant You aren't "lowering the rent" as a concession you simply will NOT get the same rent for an off water house vs direct access, water front or view home. I've had coastal STRs in FL to NC since 1992. Way before it was trendy. If you are marketing a "beach" place, distance to water is a HUGE factor. In the markets I'm familiar with rents will be priced by # of BLOCKS to water, not miles, with rents dropping 50% from oceanfront to first tier right across the street and down from there for similarly equipped houses. Having to drive to water puts you in the "all other" lowest rent bucket. You'll need to stand out in the "all other" bucket so find out what people really do on vacation in your area and set up your place to be a prime choice. Being off water means you won't spend as much on the house. But remember you are selling a vacation experience not a place to live. Also consider the salt factor. Coastal climates and salt water are brutal on house systems. I'm thrilled to get 7 years out of a 20 yr heat pump. Don't skimp on your repair funds and people will damage more than you think inside the house. Get rid of all carpet and put in LVP. People are on vacation so there will be coffee, wine, melting frozen pops, snuck in pets hitting the floors. Nothing worse than stained carpet and if your place isn't spotlessly clean, you get bad ratings. Sounds like you will do you own cleaning and inspections. The best way to go if you can. Check the flood situation carefully and don't skimp on insurance and be prepared for it to go up about 5-10%/yr. I've had better payout from wind damaged property (ie on the water) vs flood (FEMA payments did not fully compensate losses). And it takes months to recover so could be a long time with no income. Just lost a house to Hurricane Michael. It does happen. But the good news is that there are lots of PMs in coastal areas with internet listings. Super easy research with lots of pics for comps. The thrill of the hunt to pull all the factors together and find the right place for your situation. If you work with an agent, take their projections and reduce gross rent by 25% and up the maintenance costs by 15%.