When it comes to short-term rentals in Myrtle Beach, choosing between an oceanfront and a non-oceanfront property can make a big difference in performance, guest demand, and return on investment. Both options have their pros and cons, and understanding these factors can help you make the best decision for your rental business.
Oceanfront Rentals: The Premium Choice
Oceanfront condos tend to outperform non-oceanfront condos due to their prime location and stunning views. Guests love the convenience of stepping right onto the beach, making oceanfront properties a top choice for vacationers. Here are some key advantages:
- Higher Occupancy Rates: Oceanfront rentals attract more bookings because travelers often prioritize direct beach access.
- Premium Pricing: Guests are willing to pay more for the luxury of waking up to an ocean view and easy beach access.
- Strong Year-Round Demand: While summer is peak season, oceanfront properties often see higher occupancy in the off-season compared to non-oceanfront homes.
- Easier to Market: The “oceanfront” keyword is a strong selling point on listing sites, leading to more visibility and clicks.
- Slower Appreciation: While oceanfront condos generate great rental income, they typically do not appreciate in value as much as non-oceanfront homes due to high inventory and HOA restrictions.
However, there are some downsides to consider:
- Higher Purchase Price: Oceanfront condos come at a premium, meaning a larger upfront investment.
- HOA Fees: Many oceanfront condos are part of homeowners’ associations with high monthly fees.
Non-Oceanfront Rentals: The Alternative
Non-oceanfront properties, including homes and condos a few blocks from the beach, offer a different set of advantages. However, it’s important to separate homes and condos, as their costs and benefits differ significantly.
Non-Oceanfront Condos
- Lower Initial Investment: Non-oceanfront condos tend to be the most affordable option, making them a great entry point into the rental market.
- Lower Revenue Potential: While they are cheaper than oceanfront condos, their revenue potential is also lower. Guests prioritize ocean views, so non-oceanfront condos are often a secondary choice.
- Highly Competitive Market: There are a lot of non-oceanfront condos available, meaning competition is fierce. To perform well, these properties must be exceptionally designed and in the top percentile to stand out.
- Lower HOA Fees Compared to Oceanfront Condos: While many still have HOA fees, they are often lower than their oceanfront counterparts. Many of these properties lack great amenities.
Non-Oceanfront Homes
- Higher Purchase Price: Non-oceanfront homes are still expensive, often much pricier than non-oceanfront condos, but generally less than oceanfront properties.
- Stronger Appreciation: These homes tend to appreciate significantly over time since land near the ocean is limited and in high demand.
- No HOA Fees: Unlike condos, homes typically do not have HOA fees, reducing ongoing costs.
- No Special Assessments: Homeowners avoid the risk of large, unexpected fees that condo owners might face.
- More Control and Customization: Owners have full control over their property, allowing for the addition of amenities, exterior upgrades, and custom interior features to attract more bookings.
- Strong Revenue Potential: While cash flow might be tighter due to the high purchase price, non-oceanfront homes can generate great revenue, especially if they include top-tier amenities like private pools, game rooms, or outdoor entertainment areas.
Which One is Right for You?
If your goal is maximum rental income and occupancy, an oceanfront condo is typically the better option. However, if you’re looking for a lower-cost investment with the potential for long-term appreciation and flexibility, a non-oceanfront rental could be the way to go.
Non-oceanfront condos can be an affordable entry point, but they require excellent design and strategic pricing to stand out. Non-oceanfront homes, on the other hand, offer more control, higher appreciation potential, and strong revenue if well-equipped with desirable amenities.
Ultimately, the right choice depends on your budget, investment goals, and willingness to manage different property types. Whether you go oceanfront or non-oceanfront, Myrtle Beach remains a top vacation destination, ensuring strong demand for short-term rentals in both categories.
Do you own a rental property in Myrtle Beach or are you considering investing? Let us help you maximize your returns! Contact us today to learn more about our expert property management services.
