Introduction to Myrtle Beach and the Grand Strand
Myrtle Beach is a coastal city located in the northeastern part of South Carolina, known for its beautiful beaches, golf courses, and vibrant nightlife. The Grand Strand, a 60-mile stretch of coastline that includes Myrtle Beach, is one of the most popular vacation destinations in the United States, attracting millions of visitors every year.
The area’s popularity has led to a significant oceanfront real estate condo and beach home rental boom, with property values skyrocketing in recent years.
Estimates from local realtor Traci Miles indicate that the Myrtle Beach rental real estate market has witnessed a $24 billion total investment by out of state condo and beach home rental owners.
Myrtle Beach area property managers largely rent these condo units and homes for the rental owners.
The $24 Billion Real Estate Boom ALONG THE GRAND STRAND
The real estate boom in Myrtle Beach is primarily due to the city’s growing popularity as a relocation and, also, a vacation destination. With over 14 million visitors annually, the demand for vacation homes and condos has skyrocketed over the past 20 years.
In addition, the area’s warm climate, beautiful beaches, and world-class golf courses have made it a popular retirement destination, further driving up property values.
The boom has also been fueled despite the lack of a strong economy during covid, and low wage paying tourism jobs.
Myrtle Beach is also home to several large employers, including the healthcare industry, which is the area’s largest private employer. Horry County Schools is the area’s largest public employer.
In addition, the city has a thriving tourism industry, which generates $3 billion in revenue each year. The largest revenue generator for the Myrtle Beach area, however, is the real estate industry providing $38 billion in annual revenue.
Who Contributed to the Real Estate Boom?
The Myrtle Beach real estate boom has been driven by a variety of investors, including individuals, corporations, and real estate investment trusts (REITs). Many of these investors are attracted by the area’s strong rental market, which allows them to generate a steady stream of income from their properties.
One group that has played a significant role in the real estate boom is the owners of beach homes and condos. These individuals typically purchase properties as vacation homes or rental properties, generating income from short-term rentals during the peak vacation season.
Benefits of Owning a Beach Home or Condo in Myrtle Beach
Owning a beach home or condo in Myrtle Beach offers a variety of benefits. For individuals looking for a vacation home, the area’s beautiful beaches, warm climate, and world-class golf courses make it an ideal destination. In addition, the strong rental market allows owners to generate income from their properties during the peak vacation season.
For investors, owning a beach home or condo in Myrtle Beach can be a fulfilling opportunity. The area’s strong rental market allows investors to generate a regular stream of income from their properties. These revenues are, at best, a break even proposition, however, the growing real estate market offers the potential for long-term resale appreciation.
Homeowners Associations (H.O.A.) and Their Role in Myrtle Beach
Many beach home and condo owners in Myrtle Beach are members of homeowners associations (H.O.A.s). These associations are responsible for managing common areas, such as pools and landscaping, as well as enforcing community rules and regulations.
H.O.A.s play a crucial role in maintaining property values in the area. By enforcing community rules and regulations, they help to ensure that properties are well-maintained, which can increase their value over time. In addition, H.O.A.s help to maintain a sense of community in the area, which can be an attractive selling point for potential buyers.
Myrtle Beach Condo Rental Owners and Their Contributions to the Local Economy
Condo rental owners in Myrtle Beach play a significant role in the local economy. During the peak vacation season, these owners generate billions of dollars in revenue from short-term rentals.
In addition, condo rental owners are responsible for maintaining their properties, which creates jobs and income for local contractors and service providers. The demand for these services is high, particularly during the peak vacation season, which creates additional economic activity in the area.
Additional Contributions to the Local Economy
Beach home owners in the Myrtle Beach area have made a $24 billion real estate investment in the local economy. Many of these owners rent out their properties during the peak vacation season, generating income for themselves and creating jobs and income for local service providers.
These condo rental owners are collectively the largest investors in the state of S.C.
Challenges Faced by Myrtle Beach Property Owners
Despite the strong real estate market in Myrtle Beach, property owners in the area face a variety of challenges. One of the biggest challenges is the threat of natural disasters, such as hurricanes and flooding. These events can cause significant damage to properties and can disrupt the local economy.
Other key issues that have upset individual condo and beach home owners include:
HOW THE INDUSTRY HAS FAILED CONDO OWNERS:
Issues brought to our attention recently involve the article we wrote on April 27th. https://myrtlebeachsc.com/chamber-c-e-o-combats-tripadvisor-data-showing-myrtle-beach-having-u-s-as-3rd-dirtiest-rooms/
Our article concerned a response by MBACC C.E.O. Karen Riordan to an earlier article published by another news outlet. The article compiled TripAdvisor data claiming Myrtle Beach had the third dirtiest rooms in the U.S.A. Riordan said she could not validate those claims, the source, and mentioned the awards the area received.
Over 461 condo owners reached out to us stating the TripAdvisor report was largely true. Their rooms were often poorly cleaned by the property manager’s cleaning crew.
Condo rental owners at the Sea Mist Resort then reached out to us. They stated they were not paid from July 2022 through February 2023 for rooms the property manager had rented.
The total list of complaints we received from the 461 condo owners (including Sea Mist) were:
- The City of Myrtle Beach charges individual condo owners a $250 business tax, yet they have no control over the business they supposedly own. (the property managers do)
- The Chamber and the industry allows property managers to do shift-shod work on cleaning the condo owners’ units. The condo owners are then charged for the privilege of dirty rooms, unkempt rooms with damages that go unreported until the offseason.
- YIELD MANAGEMENT: Property managers have rented rooms at rock bottom rates when demand is low. This attracts the worst type of guests. The property managers then charge the condo owner for damages done to their rooms.
- In the case of a soon to be filed lawsuit, the Real Estate Industry, local and state government allowed a property manager to “skip out” without paying condo owners. Property Managers, like these, often re-emerge as a new shell company, with a new LLC.
- The most egregious include why these condo owners are suing: An LLC operating the rental account at the Sea Mist did not pay 214 condo owners from July 2022 to March 2023. In March 2023, a new group named Beach Life Resort formed a new LLC, and wrote to the rental owners, stating: “that if the condo owners do not get back on their rental program, 3rd party rental guests will have no access to the elevators and the parking lot as of this past Monday, May 1st.
- The Sea Mist Tides, Driftwood, and Oasis H.O.A. escrow account is seriously out of balance causing harm to the condo owners. They are unlikely to sell their units after such an ultimatum as #5 above has been given in writing. The Coastal Carolina associated realtor that I got an email forwarded to me states the HOA escrow is $250,000 out of balance. Yet the condo owners paid the HOA fees. This was all confirmed by an email forwarded to MyrtleBeachSC News written by Tradd, among the top H.O.A. escrow management firms in the industry.
HOME OWNERS’ RESPONSE
Homeowners tell MyrtleBeachSC News that the industry is not supporting them. Many say the industry is hostile to them.
As such the Sea Mist Condo Owners are suing. They have also formed a Facebook Group: TDO HOA UNCENSORED
Because of ongoing issues, the individual condo rental owner movement has now grown beyond the Sea Mist.
A group of Grand Strand Area Condo Owners have created a second, and vetted condo owner membership group: Myrtle Beach Condo And Beach Rental Owners.
This group is vetting members so that no H.O.A. chairs, property managers, nor H.O.A. buddy board appointees are allowed in the group. This group plans to do state-wide advocacy and local advocacy on behalf of all individual investors.
Said one of it’s founders, “What happened at the Sea Mist is nothing short of a crime scene. We can not expect the local city government, county government, state government, MBACC, nor the Coastal Carolina Association of Realtors to respect us if we are unwilling to come together as one and hold them all accountable.“
Future Prospects for Myrtle Beach Real Estate
Despite the challenges facing Myrtle Beach property owners, the future prospects for the area’s real estate market are strong. The growing popularity of the area as a vacation destination, combined with its strong economy and job market, are likely to continue driving demand for properties in the area.
In addition, the city has taken steps to address some of the challenges facing property owners, such as improving infrastructure and implementing new zoning regulations that balance development with environmental concerns.
In conclusion, the Myrtle Beach real estate market has experienced significant growth in recent years, driven by the area’s popularity as a vacation destination and strong economy. Beach home and condo owners have played a significant role in this growth, generating income for themselves and contributing to the local economy.
While property owners in the area face a variety of challenges, the future prospects for the Myrtle Beach real estate market are strong. As the area continues to grow and evolve, it is likely that property values will continue to appreciate, making it an attractive investment opportunity for individuals and investors alike.