Sunday, April 13, 2008

Myrtle Beach Rental Market April 2008

Everything you see online, in the newpaper, on TV, from your friends, family and politicitians is negative information about the economy. The reprecussions of this economic state on the rental industry is rather unique.

Long term rentals are increasing due to the ability of consumers to rent for less than the average mortgage for a home. It is not uncommon for a standard 3 bedroom 2 bath homes with a 2 car garage to rent for around $1000.00 a month. Every since the real estate boom from a few years ago the long term industry has been suffering from the surplus of units on the market.

Increasing demand in the long term market will finally start removing the surplus of properties available in the Myrtle Beach and Grand Strand area. This should increase the rental rates back to normal.

So the current rental market is actually favorable for the long term rentals. Considering the fact we are entering the busiest season along the Grand Strand, it really is the best time to place your property on a rental program.

The short term vacation rental market is a different story. Currently we have the same surplus in the this area, plus we have the additional issues of discounting from buyers who were intent on flipping their property.

Lets add the way rising gas prices may affect our travelers, and also the overall state of the economy and the fact it is an election year. We probably are in for a tough year on the vacation side. Property managers and Resorts are going to need to focus on value as well as exposure to survive the lack of demand on vacation properties.

I know I have focused on my internet pages ranking and specials heavily this year with limited results. Lets buckle in and keep smiling to all our guests and focus on customer service as we dig in and ride out the economic state of the hospitality industry.