Is a Garden City Beach Condo a Smart Short-Term Rental?

Thinking about buying a beach condo you can enjoy and also rent out when you are not here? You are not alone. Garden City Beach draws steady vacation traffic, but success with a short-term rental depends on more than location. You need the right building, realistic revenue expectations, and a clear plan for rules, taxes, and insurance.

In this guide, you will learn how Garden City Beach demand works, what to check in HOA documents, which costs matter most, and how to analyze returns before you buy. You will also get a practical due-diligence checklist you can use right away. Let’s dive in.

What drives rental demand

Garden City Beach sits within the broader Myrtle Beach coastline, a popular leisure destination with strong spring and summer travel. Demand tends to be highly seasonal, with peak occupancy in late spring through summer and softer winter months. Events, weather, and proximity to the ocean and pier influence bookings.

Location within Garden City Beach matters. Oceanfront and near-ocean properties usually command higher average daily rates and fill faster than units farther back. Unit condition, amenities, and professional marketing also impact occupancy and rate.

Guests typically book through major platforms, direct manager websites, or local property managers. Short stays are common, and multi-party vacation groups often seek convenient parking, easy beach access, and simple check-in.

Rules, permits, and taxes

Short-term rental rules can exist at the state, county, and building levels. Garden City Beach is in Horry County, so confirm whether county or any applicable municipal rules govern your property. Requirements change, so verify details before you buy or list.

Registration and licenses

• You may need a local business license and short-term rental registration or permit.
• Some areas require inspections or safety features like smoke detectors, CO alarms, and fire extinguishers.
• Noise, occupancy, and parking rules can apply. Plan guest rules and communications accordingly.

Lodging and income taxes

• Expect to collect and remit state and local accommodations or hospitality taxes on short stays, in addition to state sales/use tax on lodging.
• You will also report rental income for federal and state income tax. Many operating costs are typically deductible, but the details depend on your personal use and tax situation. A CPA familiar with short-term rentals can help you apply rules like the 14-day rule.

Where to verify

Before purchase, confirm current requirements with Horry County and the South Carolina Department of Revenue. Clarify the registration and tax remittance process and any minimum-stay or occupancy limits that could affect your revenue plan.

HOA rules and the building

For condos, the association often makes or breaks your plan. You need to confirm that short-term rentals are allowed and understand the exact limits.

Common rental restrictions

• Minimum rental periods, such as 30-day minimums in some buildings
• Caps on the number or percentage of units that may rent
• Guest registration or parking requirements
• Required use of an approved management company
• Fines or penalties for violations

Ask for the full set of governing documents: declaration, bylaws, leasing policies, rules, recent meeting minutes, current budget, reserve study, and any special assessment notices. Look for upcoming projects like balcony repairs, roofing, or elevator work that could affect expenses and downtime.

Parking, zoning, and design

Parking limits can constrain guest capacity and influence occupancy for larger groups. Zoning and site design also affect how smoothly guests arrive, unload, and access the beach. These small details show up in reviews and repeat bookings.

Special assessments and reserves

Coastal buildings face salt, wind, and moisture, which translate into higher maintenance needs. Strong reserves are a positive sign. Large special assessments can reduce returns, so model those into your cash flow.

Costs and revenue basics

Short-term rental performance depends on how many nights you book and your average daily rate. Seasonality means a large portion of revenue often arrives in a few peak months, so you should underwrite conservatively.

What drives income

• Rentable nights after your personal use
• Average daily rate by season and event calendar
• Occupancy by month and overall
• Quality of photos, furnishings, and guest experience

Common expenses to budget

• HOA dues
• Property management fees for full-service short-term rental management, often around 18% to 35% of rental revenue
• Platform and payment processing fees
• Cleanings and turnovers
• Utilities
• Insurance and property taxes
• Repairs, maintenance, pest control
• Consumables and replacements
• Business license and lodging tax remittances
• Capital reserves for upgrades and emergency repairs

A realistic budget includes cushions for low-season vacancies, higher utility use, and periodic refreshes of linens and furnishings.

Financing and insurance on the coast

Financing differs for second homes versus investment properties. Lenders may also evaluate the condo project itself, especially if a high percentage of units rent or if there is pending litigation. Confirm that your intended short-term rental use aligns with your loan terms.

For insurance, the building’s master policy covers common elements, but you will likely carry an HO-6 policy for your unit interior and liability. Short-term rental activity usually requires an endorsement or a policy tailored for STR use. Consider additional liability coverage, loss of rental income, and umbrella options.

Flood and wind risks are part of coastal ownership. Depending on your lender and elevation, you may need flood insurance through NFIP or a private carrier. Hurricanes and tropical storms can cause downtime and repairs, so plan for both higher premiums and potential interruptions in cash flow.

How to run the numbers

Build a simple model before you write an offer. Use conservative assumptions and sensitivity tests so you know your break-even point.

Key metrics

• ADR (Average Daily Rate): total rental revenue divided by occupied nights
• Occupancy rate: occupied nights divided by available nights
• RevPAR: ADR multiplied by occupancy rate
• Gross rental yield: annual gross income divided by purchase price
• Net operating income (NOI): gross income minus operating expenses, excluding mortgage
• Cap rate: NOI divided by purchase price
• Cash-on-cash return: pre-tax cash flow divided by total cash invested
• Break-even occupancy: fixed annual costs divided by ADR minus variable cost per occupied night

Step-by-step approach

1. Pull comps for similar Garden City Beach condos by bedroom count, ocean proximity, and amenities. Note rates by season and weekend vs. weekday.
2. Estimate your ADR and occupancy by month, not just annual averages.
3. Subtract realistic expenses, including HOA dues, management fees, lodging tax costs, insurance, utilities, cleanings not passed to guests, maintenance, and a capital reserve.
4. Model three scenarios: conservative, base, and optimistic. Stress-test for higher HOA dues, premium increases, and 20% to 40% weaker off-peak occupancy.
5. Compare outcomes to your financing terms to understand cash flow and cash-on-cash return.

Risks and ways to reduce them

Garden City Beach can be a strong vacation market, but every condo and HOA is different. Plan for these risks and consider simple mitigations.

• Regulatory changes: Confirm current rules and keep records of HOA approval for short-term rentals.
• Weather disruptions: Maintain adequate wind and flood coverage and a contingency fund for downtime and repairs.
• HOA costs and assessments: Review reserve studies and minutes; budget for potential assessments.
• Competition and supply growth: Differentiate with better photos, furnishings, and guest experience; price by season and events.
• Insurance costs and availability: Get quotes early and revisit annually.

Due-diligence checklist

Use this quick checklist to evaluate a Garden City Beach condo for short-term rental.

• Regulations and taxes
  • Verify Horry County and any municipal rules, permits, and business license needs.
  • Confirm accommodations and hospitality tax collection and remittance with the South Carolina Department of Revenue.
• HOA and building
  • Obtain CC&Rs, bylaws, leasing policy, rules, 12 months of minutes, budget, reserve study, current assessments, and insurance requirements.
  • Confirm whether short-term rentals are explicitly permitted, any minimum-stay rules, rental caps, guest registration, and parking limits.
• Market validation
  • Compile comps from major platforms and speak with local property managers for typical ADR, occupancy, and fees.
• Physical and insurance
  • Check FEMA flood zone and elevation; obtain wind and flood quotes.
  • Inspect for deferred maintenance, with special attention to balconies, roofing, elevators, and building envelope.
• Financing
  • Pre-qualify with lenders experienced in condos and short-term rental use; confirm project eligibility if applicable.
• Operations plan
  • Estimate available nights after personal use; set service standards, cleaning plan, and guest communication.
  • Build conservative financial scenarios with reserves for repairs and storm events.
• Contract protections
  • Use contingencies for HOA review, acceptable insurance quotes, and verification of rental policy.

So, is it a smart buy?

It can be. Garden City Beach benefits from steady leisure travel, and many condo owners achieve solid seasonal revenue. The key is picking a building that permits short-term rentals, validating real numbers for your exact unit type and location, and modeling costs that reflect coastal ownership realities like HOA dues, insurance, and special assessments.

If the numbers still work after you stress-test them, a Garden City Beach condo can serve as both a place to enjoy and a rental asset. If they do not, you will be glad you discovered that before closing. When you are ready to evaluate specific buildings and listings, reach out. We know the local condo landscape and will help you compare options with clear, practical data.

Ready to explore Garden City Beach condos that fit your goals? Connect with Jan and Dan Sitter | Coastal Beach Homes to start a focused search and run the numbers with confidence.

FAQs

What affects Garden City Beach rental demand?

• Seasonality drives bookings, with peak occupancy in late spring and summer. Ocean proximity, unit condition, amenities, and marketing also influence rate and occupancy.

Do Garden City Beach condos allow short stays?

• It depends on the HOA. Many associations set minimum-stay rules, guest registration, or rental caps. Always verify the declaration, bylaws, and leasing policy before you buy.

What are typical management fees for STRs?

• Full-service short-term rental management often ranges around 18% to 35% of rental revenue, depending on services and scale.

What insurance do I need for a condo STR?

• An HO-6 policy typically needs a short-term rental endorsement or dedicated STR coverage. Also consider liability, loss of rental income, and flood and wind coverage.

How do I find ADR and occupancy data?

• Use market analytics tools, review active listings for comparable rates and calendars, and consult local property managers. Check tourism or county data for additional context.