3 Things to Consider Before Starting a Short-Term Rental

3 Things to Consider Before Starting a Short-Term Rental

Hilton Head Island is one of the most popular vacation destinations in South Carolina.

If you're thinking about investing in a short-term rental property here in Hilton Head, you're making the right move. That being said, there's a lot to think about before investing in a short-term rental property, most notably the work involved in making it successful.

In today's post, we'll help you out by telling you 3 things you must consider before starting a short-term rental in Hilton Head. Turning your investment property into vacation property can be highly lucrative, so keep reading and let us guide you through the beginning phase of vacation rental management.

1. Look Into the Market

The first thing you need to do before investing in a vacation rental property is look into the local market and regulations therein. There has been a major influx of vacation rental properties on the South Carolina coast, which means there's a lot more competition for short-term tenants.

It's also worth noting that this is all a relatively new phenomenon and regulations can still change wildly. Start by checking to see whether or not the property you're investing in is zoned for short-term rental. Here at Hilton Head, you need to apply for a permit and abide by all of the requirements to maintain a short-term rental.

2. Securing Guests

A lot of new property owners think that securing short-term rental guests is a piece of cake. It depends on the state of the short-term rental market whether or not the demand will always be there to keep your property occupied.

For any property owner, whether you're doing short or long-term rentals, vacancies are bad news. When no one is occupying the unit, money is coming out of your pocket to cover the mortgage, utilities, and all other expenses associated with the property.

If you aren't sure about the market and you aren't prepared for the property to be vacant sometimes, you shouldn't jump into short-term rental ownership. It'll take time and effort to market the property and turn it into a popular listing on short-term rental sites.

3. Is It Worth the Work?

Another thing investors tend to underestimate is the amount of work a short-term rental is. Not only do you have to market the property, but you also need to deal with tenant questions and requests. When a short-term rental tenant leaves, you then need to maintain the unit so it's ready for the next one.

This leaves a lot of prospective property owners wondering if it's worth it. If you can't dedicate time to your property or pay someone to look after it, short-term rental ownership is very difficult.

Short-Term Rental Property Management

After considering all of the above, do you still want to invest in a short-term rental in Hilton Head?

If so, you may consider short-term rental property management. A full-service property manager can take care of the important tasks associated with short-term rentals. They'll offer guest services, perform maintenance, and market your property to a wide group of renters.

PMI Sea Island is one of South Carolina's premier property management companies. To learn how we can help you venture into the world of short-term rentals, contact us today.