Renting Real Estate in Ocean City Maryland and the Surrounding Areas

Ocean City Maryland has long been one of the top family vacation destinations on the East Coast.  As a result of this there is a very strong rental market for Ocean City condos and town homes and Ocean City homes.  A lot of property owners in the area take advantage of the Ocean City rental market and rent out their properties when they are not using them to help subsidize the costs of their real estate in Ocean City Maryland.  It is more economical for a lot of families to rent Ocean City condos and Ocean City homes as opposed to hotels.  Hotel prices have gone through the roof in recent years and a condo provides more space, full kitchens, pools, etc.

Ocean City Rental Season

The prime rental season in Ocean City Maryland is from the end of June into the beginning of September.  There are a lot of rental weeks to be had outside of this as the season is getting longer and longer each year.  The Town of Ocean City has done a great job of securing events for the area year round, which is bringing a lot of people in during the off season.  There is a lot of money to be made in late May and the beginning of June from the senior week students; however this comes with some additional risk as you can imagine.  A lot of properties are renting throughout May and through October; however the weekly rates go down.  When my clients ask me for a rental quotes I base them off of 10-12 prime weeks that I know they will get.  I advise them to plan off of that and any additional income they receive will be icing on the cake.    

Ocean City Rental Management and Companies

There are a multitude of Ocean City rental companies in town that will handle the entire rental process for you.  They will handle all of the advertising, reservations, check in, cleaning, check out and will address any maintenance issues for your Ocean City condo or Ocean City home.  Obviously they charge a fee to do this, typically between 12-16%, however it keeps you completely hands off and the Ocean City rental companies that I work with do a nice job.  They will only need to contact you when there is a maintenance issue that needs to be addressed and see how you would like to handle it.  In addition to the rental commissions you will incur cleaning fees for each week that your Ocean City condo is rented and the rental company will arrange for the cleaning.  The fee varies depending on the size and any unique aspects of the unit.  The renters are typically responsible for their own towels, linens and paper products.  The rental companies take security deposits at check in and will retain them in the event that any damage is done to the unit.  The units will be inspected by the rental companies in between rentals to ensure everything is as it should be.  Most property owners will lock off a closet and keep their personal items, linens and toiletries in there for when they come down.  I have a seasoned rental agent that I work with who has been in the rental business for over 20 years in Ocean City and I would be glad to get you in touch with her to answer any specific questions you may have.   

You do not have to commit to giving them the property for the entire season.  You can block out any weeks that you would like to come down or have friends and family coming down.  You can also rent some of the weeks yourself and save on the commissions through sites like Vacation Rentals by Owner, Craigslist and others.  The rental company will still handle all of the check ins, cleaning, etc. and only charge you a “key fee”.  A lot of my clients have had success doing this and some rent their Ocean City properties completely on their own and save on the rental commissions.    Renting your property through these sites is also a good way to generate some off season income by renting the property for long weekends or “mini-weeks”.

Ocean City Rental Terms

Most Ocean City properties are rented on a weekly basis from Saturday to Saturday or other days as established between you and the rental companies.  Mini-week programs have become very popular over the past few years.  With Ocean City Maryland only being a 6 hour drive from one third of the nation’s population, many visitors tend to come to Ocean City a few times each year as opposed to just one week.  Mini-week rentals work well for this and the typically run from Thursday to Sunday and then Sunday to Thursday.  Mini-weeks generate more rental revenue when combined together compared to standard weekly Ocean City rentals.  They are a bit riskier as you could have some gaps but for the right type of property, Ocean City oceanfront real estate for example, they are a good fit.  

Ocean City Rental Rates

Rental rates vary depending on the size, location, amenities and overall condition of the property.  Rental rates will function much like the listing prices of the Ocean City MD real estate listings you are looking through.  Ocean City ocean front real estate will command the highest rates and bayside non-waterfront listings will generate the lowest rates.  Amenities such as a pool or desirable locations will increase all rental values, especially bayside properties.  I can pull rental history sheets for Ocean City properties that you may be interested in to give you an idea of what they will generate in income on a weekly and yearly basis.  Some properties may already be in the rental program when they are listed for sale and we can pull those histories as well.  Typically the Buyer needs to honor any rentals that are already booked at the time a contract is executed.  Rental weeks can be moved however it can be tricky and there are some costs involved.  Once the property sells to a new owner all of the remaining rental deposits and income transfer to the new owner as of the date of sale.

Renting Property Outside of Ocean City

There is a market as well for properties outside of Ocean City for real estate in Ocean Pines Maryland and West Ocean City real estate.  The pool of renters is smaller so there is more competition in these areas.  Renting Ocean Pines real estate is popular due to all of the amenities the community offers and its less congested feel.  West Ocean City is getting more popular each year as it is close to everything and it offers its own unique attributes such as marinas and Assateague Island.  Properties will rent in both of these markets however it will take a little while longer to build up a strong rental base.  I would encourage doing a combination of utilizing a rental company and online rentals of your own with flexibility and you will be successful.  This provides a nice alternative as you typically can get better values and more for your money in Ocean Pines and West Ocean City real estate.

All in all renting real estate in Ocean City Maryland is relatively easy and a good way of generating revenue to help with the costs of owning Ocean City condos and Ocean City homes.  Some of my clients buy Ocean City investment properties just to rent them and realize some nice yearly returns and enjoy all of the other benefits that come along with owning Ocean City Maryland real estate.  I work closely with a veteran Ocean City rental agent and I would be glad to get you in touch with her to discuss the overall rental process in greater detail with you.   As I always I am available to discuss renting property in Ocean City or anything else concerning Ocean City Maryland with you in greater detail.   I can be reached directly anytime at 443-614-9179 or by email.