Oct 6, 2014
What is the current rental market like in Hilton Head and Bluffton and what does that mean to me if I am considering buying a property in the area?
It all depends on what type of rental property you are looking for – vacation property that rents by the week that you can use with your family from time to time – or long term rental property that is rented all year long to one tenant and you never are able to use it unless it is in between tenants.
The long term rental market is on fire. There is very little supply and the demand is through the roof. Properties that were renting for $800 per month 3 years ago are renting for $1200 or more now. If you are looking for an investment that will produce a good return and perhaps pay for itself, this is the type of rental that you will want to explore.
The short term rental market presents some great opportunities as well for those folks who want to have the rental income help cover the cost of owning the property. The expenses related to a short term rental are considerably more than those of a long term rental, however. The management fee is higher, you will have cleaning expenses, linen expenses, utilities, and maintenance. As a rule of thumb, a good rental property will cover the expenses of ownership but not the mortgage – a great rental property will cover some of the mortgage as well. There are some short term rental properties out there that do cover the cost of the mortgage but they are usually properties that are managed by the owners, have many bedrooms, and a pool.
Thank you again for your question. We are all here at Hilton Hilton Head Island Real Estate Brokers to help. Do not hesitate to call upon us!
If you want to make a little piece of The Island your own, you need more than just a road map and a REALTOR. You need a partner who can make things happen.
Home Sales Hit a Record-Setting Rebound
Jul 24, 2020