If you are a homeowner that is renting your property through an on site or off site management company then you know how a commission structure works. Companies take a percentage of your rent for managing your property.
What you might not realize is the wide variety of commission structures that exist along the Grand Strand. Commissions may range from 10% to 50% depending on location, size and amenities of the property. Some companies may negotiate a large income producing ocean front house for as low 10%- 20%. This is fairly common in the North Myrtle Beach area due to the competitive off site management companies. My company is included in the list, Southern Coast Vacations. Call me if you have questions or need a management company. =)
North Myrtle Beach has a wonderful reputation for a family beach with incredible private oceanfront homes. Though the real estate market and skyline has been changing over the past few years, you can still negotiate a very competitive commission structure. Please remember you get what you pay for. The lower the commission structure the less the company will have to market and promote your property.
In the Myrtle Beach area commission structures average 40%-50%. Yep..that’s up to half your rental income earned on your unit. Crazy! But guess what? It’s the standard for onsite rental companies. The big resorts generally maintain higher commissions plus some resort fees, so be careful, don’t think your locked into using them. Your HOA dues cover the costs on most of those great amenities. What you are really paying for is that 24 hour front desk, housekeeping and maintenance. Don’t fret though, you have viable alternatives. Did I mention that I own a management company? =)
Realistically as a property owner you should able to find a offsite management company to handle your property in the Myrtle Beach area for 20%-35%. In 2010 my company standard is 25% but depending on the size, amenities and location this is negotiable.
Hopefully you have found this article helpful, and it will save you some money. Remember their are many options, you just have to know where to look.