HOA Fees, Special Assessments, and Rental Restrictions: What to Check Before You Buy a Condo

In South Carolina, condo associations use the term "horizontal property regimes" and monthly "regime fees." These typically cover the master insurance policy, exterior maintenance, common areas, landscaping, pools, trash, and reserve contributions. Ask what's included in writing, how fees have changed over five years, and whether the budget actually balances.

Reserves are savings for major repairs: roofs, elevators, HVAC, seawalls, pool resurfacing. Above 70% funded is healthy. Below 30% is a real signal a special assessment is coming. Since the 2021 Surfside collapse, lenders and insurers scrutinize structural safety far more closely, and that scrutiny shows up as assessments on older coastal buildings.

Minimum lease terms, rental caps, owner-occupancy requirements, and grandfathering rules all differ. If short-term rental income is part of your plan for a home in North Myrtle Beach or anywhere on the Grand Strand, confirm the actual current rules in writing before you write an offer, not after.

Request the master deed/declaration, bylaws, current rules, budget, year-end financials, reserve study, 12-24 months of board minutes, master insurance declarations, and any special assessment or litigation disclosures. Red flags: reserves under 30% funded on an older building, no reserve study in five years, or minutes discussing structural problems or repeated assessments.

Local to Coastal Realty reviews association documents with every condo buyer before the due diligence period runs out. If you're considering a purchase in North Myrtle Beach or along the coast, reach out before you're locked into a contract.