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
The Green Bay City Council is set to vote on new short-term rental rules, which will likely impact local hosts. Details about the specific regulations are not yet known, but hosts should prepare to understand and adapt to the changes. Stay informed about the upcoming vote.
This article discusses the need for housebuilding to address temporary accommodation challenges. It argues that short-term solutions are not enough and should be supported by building more houses. This highlights the ongoing debate about housing affordability and its relationship to the STR market.
Hawaii's hotel industry and the governor are seeking to eliminate 30,000 vacation rentals. This move reflects ongoing tension between traditional hotels and the rapidly expanding short-term rental market. The potential reduction could reshape Hawaii's tourism landscape and affect rental income for hosts, alongside a shift in tourism economics.
Curated by Learn STR by GoStudioM