Buying a Short Term Rental in Myrtle Beach: The Contract Process
Summary
This article details the contract process for buying a short-term rental property in Myrtle Beach, SC. Hosts should understand the specifics of earnest money, termination fees, furniture sales, and disclosures, especially the 90-day rule for existing bookings. This information helps avoid potential financial risks when purchasing a STR.
Key Insights
- •Earnest money in the Myrtle Beach market is typically 1% of the purchase price, held by an attorney, and refundable based on contract contingencies like financing or inspection results.
- •South Carolina has a Vacations Rental Act, which requires honoring existing bookings with a 90-day notice period when a property changes ownership. The new owner, not the previous owner, receives the rental income during this period.
Action Items
- ✓Hosts should understand the local regulations regarding contract terms and disclosures when buying a STR in a new market, particularly regarding earnest money and the 90-day rental rule.Effort: lowImpact: medium
Common Mistakes
- ⚠A common mistake is not sending earnest money on time or missing contract deadlines. Failure to meet these deadlines can lead to a breach of contract.
More from Regulations & Compliance
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A 21-unit vacation rental in Dunedin, Florida, has been approved, signaling potential growth in the local short-term rental market. This approval could lead to increased accommodation options for tourists visiting the area. This news could also influence local regulations.
St. Louis aldermen have approved a short-term rental fee, though a legal battle over existing rules continues. This indicates a focus on regulating the STR market within the city. Hosts in St. Louis should be aware of these new fees, which may impact their profitability. Find out how this affects your STR business.
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