Condo- Airbnb rentals for first timer?

Question

I was just wandering if investing in a condo near a beach on the east coast is a good idea for my first investment? I was thinking of Airbnb renting it or something like that?? Also, how to I find property managers for airbnb style rental and are there any better recommended beach areas to look? I love Myrtle beach but I’m not sure if that’s a good market

Brett Boyce · Answer

@Taylor Bishop thanks for the info. I have priced some condos in Va beach as well as ocean city md. I did have concerns that some HOA’s were going to start making rules against Airbnb’s. It sounds like that is the case. You are saying that they still allow vacation rentals? What would be the difference in that and Airbnb? The length of stay or the method it is booked?

Daniel Denning · Answer

@Brett Boyce I own an oceanfront 2 bed 2 bath condo at the Carolinian Beach Resort on the 21st floor. My direct booking site is denningproperties.com if you want to see it. I’m projecting about $5,000 in profit my first full year, but that is with blocking off a day in between each stay because of COVID. I started at the end of June and have about $23,000 in revenue and booked revenue for 2020.

Daniel Denning · Answer

@Brett Boyce Hi Brett! I purchased my first property in Myrtle Beach in March and have been renting it out myself. Things have been going really well and I’m starting to cohost a property for a client in North Myrtle Beach in November. My client lives in Pennsylvania. While it’s definitely possible to manage everything from afar (I live in Atlanta), it does take some work and organization. If you’re going to use an on-site property management company, you’re going to be looking at them charging 40-45% of your revenue. Off-site companies may be in the 25-35% range. Cohosting is usually less and allows your property to get a lot more attention vs being 1 of 100 properties a property management company handles.

Daniel Denning · Answer

@Brett Boyce cohosting is very similar to property management. Airbnb offers it, but it’s basically managing a property for someone while the owner still receives all payouts. At the end of the month, the cohost invoices the owner for the agreed upon percentage of revenue and any expenses incurred on behalf of the owner (cleaning, repairs, etc). I have a team in Myrtle Beach that I use. I schedule my cleaner in between stays, have handymen as needed, locksmiths, etc. I also manage all bookings, guest communication, scheduling of maintenance and repairs, digital guestbook creation, marketing, and listing creation as a cohost.

Jesse Canady · Answer

@Brett Boyce I am an agent in eastern NC. This can be a very profitable model. lets connect! I'll show you some areas in my market.

Taylor Bishop · Answer

It depends on the locations, but for the most part anywhere from 250 to 400, even higher. However, there are a lot of newer construction condos that are not a part of any condo association that have no fees.

Brett Boyce · Answer

What is the average cost of these condos and hoa fees?

Taylor Bishop · Answer

In Sandbridge they are still allowing Vacation rentals, the North End and Shore Dr they are still allowing vacation rentals with a CUP. However, there was a townhall recently where they are trying to amend the CUP for the North End and Shore Dr. If your in Sandbridge your fine, if you are in the two other areas you can only have two contracts a week for str, a max of the three people to a bedroom etc, and of course CUP approval. If you went str route this is what it would like from my company.

Weekly Rates Summer VacationJune 5 - June 12: $3500June 12-Aug 14: $3900Aug 14-Sep 11: $3500Taxes, cleaning fee and refundable security deposit additionalWINTER RENTAL MID-SEPTEMBER THROUGH MAY $3,750.00/mo.(Application fee and 1-month security deposit apply to winter rentals)Commission TypePercentManagement Fee Percent 10.0 from owner

Taylor Bishop · Answer

Hello, Brett, I live in Virginia Beach, VA and Air BnB and vacation rentals are popular down here. However, Virginia Beach has started to crack down on Air BnB's with a new ordinance for certain areas. You could always hire a property manager manage the property as a short term rental. For example, many people rent their properties out during the cooler weather months for like 5 to 6 months, then rent it out as a vacation rental for the remaining time. My firm manages a lot of these properties.

Jackie Hess · Answer

Here in Charleston we have a number of "boutique" property management companies that primarily focus on short term/vacation rentals. A few offer a la carte options that can be a great fit depending on how much work or responsibility you want.

Condo- Airbnb rentals for first timer?

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