Myrtle Beach says they lose millions converting short-term rentals. Here’s how much

A recent report by Arnett Muldrow & Associates presented to Myrtle Beach officials warns of significant revenue losses if short-term rentals are converted to long-term use. The analysis, revealed on October 1, 2024, estimates that such conversions could cost Myrtle Beach $1.51–$2.52 million annually in lost taxes and fees, with combined losses for the city, Horry County, and South Carolina ranging from $4.58–$7.78 million. If 1,000 rental units were converted, the total impact could reach $7.61 million.

The report also highlighted increased costs for fire and police services in long-term rental areas and projected 48 job losses. Myrtle Beach had imposed a moratorium on conversions in April 2024 to assess financial impacts, covering properties near the beach. The freeze expires in January 2025, with no decision yet on an extension.

Key recommendations include creating an overlay district to manage conversions, updating zoning codes, and allowing long-term rentals in multi-family residential zones while excluding hotels and motels. However, the study’s scope was limited and excluded many property types, leaving unanswered questions about the broader economic effects and hotel room supply.

Critics argue the region’s evolving year-round economy might offset losses, but the city’s tax structure, reliant on tourism, suggests otherwise. The findings align with earlier projections of a $5.7 million economic impact loss.

Source: The Sun News