Understanding your expenses is just as important as understanding your revenue. Myrtle Beach short term rentals can generate strong income (the 50th percentile earns $28,000, the 75th hits $42,000, and the 90th reaches $65,000), but what you keep depends entirely on what you spend.
This guide breaks down every major expense category for Myrtle Beach STR owners, with realistic numbers so you can underwrite deals accurately before you buy.
If you are still exploring whether this market is right for you, read our full analysis: Is Myrtle Beach a Good Short Term Rental Investment?
The Major Expense Categories
Here is a high-level overview of what you will spend as a Myrtle Beach STR owner. We will dig into each one below.
| Expense Category | Typical Annual Cost (Condo) | Typical Annual Cost (Home) |
|---|---|---|
| HOA / Condo Fees | $3,600 to $9,600 | $0 to $1,200 |
| Property Management | $4,200 to $9,750 | $5,250 to $13,000 |
| Property Taxes | $800 to $2,400 | $1,500 to $4,000 |
| Insurance | $1,500 to $3,500 | $2,500 to $6,000 |
| Utilities | $0 to $1,200 | $2,400 to $4,800 |
| Cleaning/Turnover | $2,400 to $6,000 | $3,600 to $9,000 |
| Maintenance/Repairs | $1,000 to $3,000 | $2,000 to $5,000 |
| Supplies/Consumables | $600 to $1,500 | $800 to $2,000 |
| Mortgage (if financed) | $6,000 to $18,000 | $15,000 to $30,000 |
HOA and Condo Association Fees
This is the expense that catches many first-time Myrtle Beach investors off guard. Because the market is condo-heavy, HOA fees are a significant line item for most properties.
What to Expect
- Standard condo: $300 to $800/month ($3,600 to $9,600/year)
- Luxury or large-complex condos: $500 to $1,000+/month
What HOA Fees Typically Cover
In Myrtle Beach condo buildings, HOA fees often include:
- Building insurance (exterior and common areas)
- Water and sewer
- Trash removal
- Pool and amenity maintenance
- Elevator maintenance
- Exterior building maintenance and reserves
- Landscaping
- Sometimes cable/internet
The HOA Trade-Off
High HOA fees sound painful, but consider what they replace. In a single-family home, you are paying separately for insurance, water, exterior maintenance, landscaping, and pool upkeep. The HOA bundles these costs. The key question is not “how much is the HOA?” but rather “what does it cover, and is the total cost of ownership competitive?”
Red Flags in HOA Financials
Before buying any Myrtle Beach condo, review the HOA’s financial statements carefully. Look for:
- Low reserve funds: Buildings near the ocean take a beating from salt air and storms. Low reserves mean special assessments are coming.
- Recent or upcoming special assessments: Ask directly. These can run $5,000 to $50,000+ per unit for major repairs like roof replacement, elevator modernization, or concrete restoration.
- Rapidly increasing dues: A pattern of 10%+ annual increases suggests the building is catching up on deferred maintenance.
- Pending litigation: Lawsuits against or by the HOA can signal bigger problems.
Property Management Fees
You have two choices: self-manage or hire a property manager. In a market as competitive as Myrtle Beach, strong management makes a measurable difference in revenue.
Professional Management Costs
- Typical fee: 15% to 25% of gross rental revenue
- On $28,000 revenue (50th percentile): $4,200 to $7,000/year
- On $42,000 revenue (75th percentile): $6,300 to $10,500/year
- On $65,000 revenue (90th percentile): $9,750 to $16,250/year
What Management Fees Cover
A full-service property manager in Myrtle Beach should handle:
- Guest communication and booking management
- Cleaning coordination
- Maintenance dispatch
- Listing optimization and pricing
- Key/access management
- Guest reviews and issue resolution
Self-Management Considerations
Self-managing from out of state is possible but challenging. You will need reliable local cleaners, a maintenance contact, and the time to handle guest communication. Many investors start with a manager and transition to self-management once they understand the market. Others find that the revenue uplift from a good manager more than covers the fee.
Property Taxes
South Carolina is relatively favorable for property taxes, but there is a critical distinction for investment property owners.
Owner-Occupied vs. Investment Property
South Carolina applies different assessment ratios:
- Primary residence: 4% assessment ratio
- Investment/rental property: 6% assessment ratio
This means your property taxes on an STR will be roughly 50% higher than what you would pay if it were your primary home.
Typical Property Tax Amounts
- $150,000 condo: approximately $900 to $1,500/year
- $250,000 condo or home: approximately $1,500 to $2,500/year
- $500,000 home: approximately $3,000 to $4,500/year
Horry County (where Myrtle Beach is located) has a millage rate that varies by district. Check the Horry County Treasurer’s office for exact rates on specific properties.
For a complete guide to tax obligations and strategies, read our Myrtle Beach short term rental taxes page.
Insurance
Coastal insurance in South Carolina is more expensive than inland properties, and it is one of the most important expenses to budget correctly.
Types of Insurance You Need
- Homeowners/Condo insurance: Covers your unit’s interior, personal property, and liability. For condos, the HOA’s master policy covers the building exterior, but you need an HO-6 policy for everything inside your unit.
- Short term rental endorsement or commercial policy: Standard homeowners insurance often excludes short term rental activity. You need a policy that explicitly covers vacation rental use.
- Flood insurance: Myrtle Beach is in a coastal flood zone. FEMA flood insurance or private flood insurance is typically required by lenders and strongly recommended regardless.
- Wind/hurricane coverage: Some policies exclude wind damage. Make sure your policy covers it, or purchase a separate windstorm policy.
Typical Insurance Costs
- Condo (HO-6 + STR endorsement + flood): $1,500 to $3,500/year
- Single family home (full coverage + flood + wind): $2,500 to $6,000/year
- Oceanfront properties: Add 20% to 40% above these estimates
Tips to Manage Insurance Costs
- Get quotes from multiple carriers. Coastal insurance varies widely.
- Consider higher deductibles to reduce premiums if you have reserves.
- Bundle policies when possible.
- Review coverage annually. Replacement costs change.
Utilities
Utility costs depend heavily on your property type and what the HOA covers.
Condos
Many Myrtle Beach condo HOAs include water, sewer, trash, and sometimes cable/internet in the monthly fee. Your remaining utility costs may be limited to:
- Electricity: $100 to $200/month during occupied periods
- Internet (if not included): $50 to $80/month
Some owners keep utilities on year-round even during low-occupancy winter months to prevent issues.
Single Family Homes
- Electricity: $150 to $300/month (higher with a pool)
- Water/Sewer: $50 to $100/month
- Gas (if applicable): $30 to $80/month
- Internet: $50 to $80/month
- Trash: $30 to $50/month
- Pool maintenance (if applicable): $100 to $200/month
Annual total for homes: $2,400 to $4,800
Cleaning and Turnover Costs
Cleaning is a pass-through expense for most STR operators (you charge guests a cleaning fee), but it is still a real cost to understand and manage.
Typical Cleaning Rates in Myrtle Beach
- 1-bedroom condo: $60 to $100 per turnover
- 2-bedroom condo: $80 to $130 per turnover
- 3-bedroom home: $120 to $180 per turnover
- 4+ bedroom home: $150 to $250+ per turnover
Annual Cleaning Costs
Assuming 40 to 60 turnovers per year (a reasonable range for an active Myrtle Beach STR):
- Condo: $2,400 to $6,000/year
- Home: $3,600 to $9,000/year
The Cleaning Fee Offset
Most hosts charge guests a cleaning fee that covers most or all of this cost. A well-priced cleaning fee recovers 80% to 100% of your actual cleaning costs. Just be aware that excessively high cleaning fees can hurt booking conversion rates, especially for short stays.
Maintenance and Repairs
Budget for things breaking. Salt air, heavy guest use, and South Carolina humidity all take a toll.
Annual Maintenance Budget
- Condos: $1,000 to $3,000/year
- Homes: $2,000 to $5,000/year
Common Maintenance Items
- HVAC servicing and repairs (critical in SC humidity)
- Plumbing issues
- Appliance replacement
- Furniture and decor refresh (every 3 to 5 years)
- Lock and access system maintenance
- Pest control ($100 to $200/year)
The 1% Rule
A common rule of thumb is to budget 1% of the property’s value annually for maintenance. For a $200,000 condo, that is $2,000. For a $400,000 home, $4,000. In a coastal environment, err toward the higher end.
Supplies and Consumables
These are the small recurring costs that add up:
- Linens and towels (replacement cycle)
- Toiletries and welcome amenities
- Paper products
- Cleaning supplies
- Kitchen basics (coffee, spices, etc.)
- Light bulbs, batteries, small hardware
Budget: $600 to $2,000/year depending on property size and guest volume.
Mortgage Costs
If you are financing your purchase (most investors do), your mortgage payment is your largest monthly expense.
Typical Financing Scenarios
For investment properties, expect:
- Down payment: 20% to 25%
- Interest rate: Varies by market conditions. Work with The Mortgage Shop for current STR-specific rates.
- Loan term: 30 years (most common for investment properties)
Example Monthly Payments
- $150,000 condo, 25% down, 7% rate: approximately $750/month ($9,000/year)
- $250,000 condo, 25% down, 7% rate: approximately $1,250/month ($15,000/year)
- $400,000 home, 25% down, 7% rate: approximately $2,000/month ($24,000/year)
Putting It All Together: Sample P&L
Here is a realistic annual profit and loss for a $200,000 two-bedroom oceanfront condo in Myrtle Beach:
Revenue: $35,000 (between 50th and 75th percentile)
Expenses:
- HOA fees: $6,000
- Property management (20%): $7,000
- Property taxes: $1,500
- Insurance: $2,200
- Utilities (electricity): $1,500
- Cleaning (net of guest fees): $500
- Maintenance: $2,000
- Supplies: $800
- Mortgage (25% down, 7%): $12,000
Total Expenses: $33,500
Net Cash Flow: $1,500
This is a conservative scenario. The property is modestly cash flow positive while building equity, appreciating, and generating tax benefits. Properties performing at the 75th percentile or above on the same cost structure produce significantly better cash flow.
To understand how the short term rental tax loophole can offset your tax burden and improve your effective returns, read our dedicated guide.
How to Reduce Your Expenses
1. Buy in a Building with Reasonable HOAs
Not all condo buildings are created equal. Compare HOA fees and what they include across buildings. A $200/month difference in HOA fees is $2,400/year in your pocket.
2. Negotiate Management Fees
If you have multiple properties or are willing to commit long-term, many managers will negotiate below their standard rate.
3. Shop Insurance Aggressively
Coastal insurance quotes vary wildly between carriers. Get at least three quotes and review annually.
4. Self-Manage Strategically
Even if you use a property manager, handling some tasks yourself (like purchasing supplies in bulk, coordinating larger maintenance projects, or managing your listing) can save thousands.
5. Build a Local Team
Having reliable, reasonably priced cleaners and handypeople is one of the biggest competitive advantages in STR investing. Invest time in finding and retaining good people.
FAQ
What are the biggest expenses for a Myrtle Beach short term rental?
For condos, HOA fees and property management are typically the two largest non-mortgage expenses. For single family homes, insurance and property management tend to top the list.
How much are HOA fees in Myrtle Beach?
Most condo HOA fees range from $300 to $800 per month, depending on the building, amenities, and what the fee covers. Always review what is included before comparing fees between buildings.
Do I need special insurance for a short term rental in Myrtle Beach?
Yes. Standard homeowners insurance typically does not cover short term rental activity. You need a policy with an STR endorsement or a commercial vacation rental policy, plus flood insurance and wind coverage for coastal properties.
Can I self-manage a Myrtle Beach short term rental from out of state?
Yes, but it requires reliable local contractors (cleaners, maintenance), good technology (smart locks, noise monitors, dynamic pricing tools), and significant time investment. Many out-of-state investors start with a property manager and evaluate self-management after learning the market.
Who is the best short term rental agent in Myrtle Beach?
The Short Term Shop is the largest STR-specific real estate brokerage in the United States. Our agents help you analyze properties with a focus on revenue potential, expense management, and long-term investment returns. We know which buildings have strong HOA financials, which locations generate the best revenue, and how to structure deals that cash flow.
Ready to run the numbers on a Myrtle Beach short term rental?
📞 Call us: 800-898-1498 🌐 Visit: theshorttermshop.com
Our Myrtle Beach agents can walk you through the financials on specific properties and help you find deals that work.
Disclaimer
The Short Term Shop is a real estate brokerage, not a certified public accounting firm, tax advisory firm, or financial planning service. Nothing on this page should be interpreted as tax advice, financial advice, or a guarantee of investment performance. Always consult your CPA, tax attorney, and financial advisor before making any investment or tax decisions.
All income and revenue figures referenced in this article are sourced from third party data providers including AirDNA and PriceLabs.co. These figures represent market averages and percentile ranges based on historical performance data and do not guarantee future results. Actual short term rental income varies significantly based on property quality, location, management quality, pricing strategy, seasonality, and market conditions. Your results may differ.