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.
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