Holiday Pavilion Resort HOA Risk Assessment: Program-leaning

02 The five questions

What the documents decide
before your first guest books.

Five dots is the best answer for an owner who wants to run the unit themselves. One dot is a red flag. Open “What the documents say” under each for the exact words.

Can you rent it your way?

Typical

Whether the deed and rules let you rent short-term on your own terms: no requirement to use the on-site program, no minimum stay that kills weekend bookings, and no rule against saying where the condo is.

Nightly rentals, self-management and outside managers are all allowed by the deed, and the rental-right paragraph cannot be amended without CU-1 consent, but owners must file a city STR license at the on-site desk, may not use any common element for the rental business (no key pick-up, desk or concierge), face mark-owner advertising rules, and may only rent to guests 21+ who live more than 60 miles away.

Short-term rentalsAllowed

Must use on-site programNo

Owner may rent it personallyYes

Off-site manager allowedYes

Owner-use limitsNone in the association documents. (The on-site program's own contract limits owner and non-paying guest use to 21 days/nights between May 1 and August 31 and requires 30 days' notice of owner stays, but that binds only owners who sign the program agreement.)

RegistrationBefore any short-term rental the owner must obtain a City of Myrtle Beach short-term rental business license and deliver it to the on-site registration desk on the 2nd floor (designated the building's 'main office'); parking permits for the owner, tenants, agents and contractors are suspended while no current license is on file. Each owner, guest, tenant and contractor must obtain an HPCT parking permit (one space per unit). Contractors must be licensed in the City of Myrtle Beach and have liability and workers' compensation certificates filed with the association at the registration desk before any work. Owners may be required to deposit a unit key with the association (Master Deed Art. XVII). Outside rental management companies must furnish proof of $1M/$2M general liability plus a $5M umbrella naming the association as additional insured before starting operations and must post a contact placard in each unit they manage. The association's contact form asks each owner to list their rental agency.

Advertising rulesThe names 'Holiday Pavilion' and 'Holiday Pavilion Resort' are service marks of Pavilion Resort Management, LLC (the on-site operator), licensed to the association; the mark owner retains the right to impose reasonable rules on how owners and rental managers advertise units for rent so that the names and photographs are not misleading about inventory size or guest services. No 'For Rent' or other signs may be visible from outside a unit; the exclusive easement to advertise on corridors, elevators, building exterior and parking areas belongs to CU-1. No specific disclaimer wording is prescribed in the documents supplied.

Vote to change rental rulesMaster Deed generally: 67% of the undivided interest in the common elements at a special meeting (proposed by board majority or 25% of interest). Article XIV paragraph 2 (the timeshare ban and the owners' right to rent daily, weekly or monthly) may be amended only with the express written consent of the CU-1 owner (Art. XXIX(iv); Art. V identifies this as the 'second paragraph of Article XIV'). Article XIV paragraph 3 (the ban on owner/association commercial activity on the common elements) states it may not be amended without the unanimous vote of all unit owners, and because it reserves exclusive commercial rights to CU-1 any change also needs CU-1's written consent under Art. XXIX(vi). By-Laws: 67% of total votes. Changes to percentage interests or assessment basis: all owners and their mortgagees.

What the documents say (21)

“Provided however, nothing herein shall be construed as limiting the right of any OWNER of any UNIT from renting or leasing his, her, their or its UNIT, subject to all terms and conditions of this Master Deed on a daily, weekly or monthly basis.”Master Deed, Article XIV, file pp.13-14

“RESIDENTIAL UNIT OWNERS may rent their UNITS, but are restricted against using any part of the COMMON ELEMENTS to engage in the business of renting.”Master Deed, Article XIV, file p.14

“The ASSOCIATION and each UNIT OWNER (other than the OWNER of the COMMERCIAL UNIT) is specifically restricted against conducting any commercial activity on any of the COMMON ELEMENTS.”Master Deed, Article XIV, file p.14

“Except for the COMMERCIAL UNIT and the LIMITED COMMON ELEMENTS that are for the exclusive use and benefit of the COMMERCIAL UNIT, the exclusive right of the OWNER of the COMMERCIAL UNIT to control the movable type on the marquis sign, the right to install and maintain signage reserved in the first paragraph of this Article XIV, the exclusive right of the COMMERCIAL UNIT OWNER to conduct certain commercial activities upon the COMMON ELEMENTS as set forth elsewhere in this Master Deed, including, without limitation, the placement of signage, food and beverage service, and child activity programs, and except for the use of UNITS for sales and marketing of UNITS reserved in favor of the GRANTOR hereinabove, no commercial activity or activities shall be conducted within any UNIT, COMMON ELEMENT or LIMITED COMMON ELEMENT, nor shall the same be modified or altered to accommodate any such commercial use, including, but not limited to, operation of general rental management service for the RESIDENTIAL UNITS and related accommodation services such as reservations, key pick up and drop off, front desk, concierge, and cable, movie, internet and telephone services to RESIDENTIAL UNITS, shops, stores, sales, gaming machines if permitted by law, cell towers, guest laundries, meeting rooms, restaurant, lounge, game room, real estate sales, accommodations, health spa, night clubs or any combination of such uses related to any phase.”Master Deed, Article XIV, file p.14

“Daily or weekly maid service is permitted by independent contractors acting for one or more UNIT OWNERS, but only the OWNER of UNIT CU-l shall be entitled to use the on premises janitorial closets.”Master Deed, Article XIV, file p.14

“The foregoing restriction on commercial activities may not be amended without the unanimous vote of all UNIT OWNERS.”Master Deed, Article XIV, file p.14

“GRANTOR further discloses that in the case of OWNERS that desire to rent RESIDENTIAL UNITS they own, the owner of the Marks, its successors or assigns, retains rights to impose reasonable rules and regulations concerning the advertisement of UNITS for rent by OWNERS and rental managers to prevent use of the names and photographic images of the Marks in a manner that is misleading to the general public as to the size of inventory of UNITS that is being offered or as to the types of guest services that are available in connection with the rental.”Master Deed, Article VII, file p.11

“GRANTOR discloses that the names "Holiday Pavilion" and "Holiday Pavilion Resort" (the "Marks") are service marks of Pavilion Resort Management, LLC, a South Carolina limited liability company.”Master Deed, Article VII, file p.11

“The Regime Property is hereby further restricted such that any and all rental management companies providing services to any UNIT OWNERS at Holiday Pavilion Condominium Tower Horizontal Property Regime shall maintain the following amounts of insurance: General liability coverage in an amount of not less than $1,000,000.00 per occurrence with an aggregate of $2,000,000.00 and an umbrella policy of not less than $5,000,000.00 (provided that such coverage is available at standard rates from a licensed insurer within the State of South Carolina), with Holiday Pavilion Condominium Tower Homeowners Association, Inc. named as an additional insured on all such policies.”Master Deed, Article XV, file p.15

“Additionally, any and all rental management companies providing services to UNIT OWNERS shall prominently display a placard or other similar materials within each UNIT on their rental program, identifying the name, address, phone number and other contact information for such rental management company and specifically whom to contact for issues regarding the maintenance or cleanliness of the UNIT and/or linen service.”Master Deed, Article XV, file p.15

“Further, no OWNER, or his agent, may place any signs or banners upon the COMMON ELEMENTS, or within his UNIT or the LIMITED COMMON ELEMENTS so as to be visible from the exterior of the UNIT, including, without limitation "For Sale", "For Rent" or other advertising signs.”Master Deed, Article XIX, file p.17

“The ASSOCIATION is not intended to and shall not become involved in the business or practice of rental management of RESIDENTIAL UNITS.”By-Laws (Exhibit E to Master Deed), Article I Section 4, file p.56

“In order to help assure compliance with the first sentence of the Master Deed Article XVI, as it applies to Myrtle Beach Code of Ordinances Sections 11:21 & 28(b), the Owner(s) of each Unit offered for rental on a short-term basis shall, prior to any rental of such Unit, obtain and cause to be delivered to the onsite registration desk located on the 2nd floor of HPCT, which desk is hereby designated by the Association as the "main office" of the building for the purposes of Section 28(b), a Myrtle Beach business license for the short-term rental of such Unit, so that such licenses for all Units in the building may be produced upon demand for inspection as required by Myrtle Beach Code of Ordinances Section 28(b).”Rules and Regulations (recorded 2020), Rule 5, pp.2-3

“The issuance of parking permits shall be suspended for: (a) Unit owner(s) engaged in short-term rentals, and for their tenants, agents, contractors and invitees, during any and all times that an original, current, valid Myrtle Beach business license for short-term rentals of such Unit has not been delivered by or on behalf of the Unit owner(s) to the onsite registration desk located on the 2nd floor of HPCT; and (b) any contractor or service provider engaged by a Unit owner to provide services within the owner's Unit during any and all times that (i) the Unit owner or its rental agent has not provided the Association with the contractor's or service provider's name and proof of liability and workers compensation insurance, or (ii) such contractor or service provider fails to provide the said registration desk with proper identification that corresponds with the company named on the proof of insurance provided by the Unit owner.”Rules and Regulations (recorded 2020), Rule 4, p.2

“Only persons age 21 or older are permitted to rent any units in the condominium-hotel. No Units of HPCT shall be rented to persons that live within 60 miles of the condominium-hotel.”Rules and Regulations (recorded 2020), Rule 15, p.4

“At such meeting, the amendment or amendments proposed must be approved by an affirmative vote of MEMBERS owning at least sixty-seven (67%) percent of the undivided interest in the COMMON ELEMENTS of the Condominium in order for such amendment or amendments to become effective.”Master Deed, Article XXIX (Amendment of Master Deed), file p.31

“iv) any amendment of the second paragraph of Article XIV, which may be amended only with the express written consent of the OWNER of COMMERCIAL UNIT CU-I;”Master Deed, Article XXIX, file p.31

“To not accept money or barter for any rental of the Unit except through Agent and to not advertise or solicit rental(s) of the Unit thru any medium other than those used by Agent.”On-site Rental Management Agreement (program contract, not an HOA document), Section 3.11, p.4

“Nothing herein contained shall be construed as limiting or preventing ownership of any UNIT and its appurtenant undivided interest in the COMMON ELEMENTS by more than one person or entity as tenants in common, or joint tenants with right of survivorship, subject however to the restrictions of the second paragraph of Article XIV.”Master Deed, Article V, file pp.8-9

“vi) any alteration to the rights or privileges granted or reserved hereunder in favor of the COMMERCIAL UNIT and the OWNER thereof which are reserved herein exclusively for the benefit of the COMMERCIAL UNIT and the OWNER thereof, which said rights and privileges granted and reserved exclusively unto the said COMMERCIAL UNIT and the OWNER thereof shall only be altered, amended, modified or further granted only with the express written consent of such affected OWNER of the COMMERCIAL UNIT, their successors and assigns”Master Deed, Article XXIX, file p.31

“As used herein, commercial activity does not include use of COMMON ELEMENTS for family or private gatherings, cookouts, picnics, or parties subject to specific rules and regulations for such as may be, from time to time, adopted by the Association.”Master Deed, Article XIV, file p.14

Will your guests be treated like guests?

Caution

Whether a guest who booked through you gets the same resort as a guest who booked through the front desk: the same pools, parking, wristbands and check-in, or a second-class version of them.

Off-program guests share the pools, spas and decks but are shut out of the operator-owned front desk, exercise room, business center, guest laundry and coffee shop, the owner handles check-in and keys, parking is one permit per unit issued at the desk and suspended if the license lapses, and no disclaimer is required.

Amenities for your guestsMost, not all

Off limits to your guestsFront desk / reception and concierge area (part of CU-1), Exercise room, Business center, Guest laundry rooms (3rd-level guest laundry is part of CU-1), Coffee shop, Centralized switchboard telephone service (switchboard is CU-1 property), Janitorial closets (only CU-1 may use them), Pool bar is a CU-1 commercial space (food and beverage sales are a CU-1 exclusive easement)

Wristbands & parking passesNo wristband rule appears in the documents supplied. Parking permits are issued by the association through the 2nd-floor on-site registration desk; one space per unit; every owner, guest, tenant and contractor must obtain a permit before parking; cost unstated (the budget carries a $1,800 parking-permit software line). Permits are suspended for a short-term-rental owner and that owner's tenants, agents and contractors whenever a current Myrtle Beach STR business license is not on file at the desk. Parking is self-park across Ocean Boulevard under a parking easement (up to 100 spaces) that the easement grantor may relocate. Unauthorized vehicles are towed at the owner's expense. No golf carts, trailers, campers, boats, jet skis or recreational equipment.

Check-inowner handles for off-program guests. The front desk is CU-1 property reserved to the on-site program (the operator's contract states its front desk and other amenities are not available to owners or guests not on its program), and the Master Deed bars owners from using any common element for reservations, key pick-up/drop-off, front desk or concierge services. The 2nd-floor on-site registration desk (the Rules do not say who staffs it; the deed assigns the 2nd-floor reception and concierge areas to CU-1) handles business-license filing, parking permits and contractor IDs; the 2024 minutes record that the HOA pays the on-site rental management an annual fee covering key cards, lockbox set-up, business-license receipt and emergency handling.

TrashTrash may not be left in hallways or common areas and must go in a proper container (Rule 11); the Master Deed lists trash and linen chutes among the common elements maintained by the association, so no owner trash hauling rule appears.

ElevatorsNo service-elevator or vendor elevator rule in the documents supplied. Smoking/vaping is prohibited in elevators and elevator lobbies. Elevator maintenance is an association expense ($15,855 in 2025).

Housekeeping & linenOwners may use independent contractors for daily or weekly maid service, but only CU-1 may use the on-premises janitorial closets. Outside rental management companies must post an in-unit placard saying whom to contact for cleanliness and linen service. Linen chute is association-maintained. On the on-site program, housekeeping is provided by the operator with a per-night guest fee ($17.25/$20.45 by unit type) and an owner departure clean-up fee ($27/$38). Pool rules are enforced by 'on-site pool staff', who may clear chairs unoccupied for 30 minutes and restrict water toys; whether that staff is the association's or the operator's is unstated (Rules 2020, Rule 9).

What the documents say (13)

“Except as may be specifically set forth herein with regard to LIMITED COMMON ELEMENTS, the COMMON ELEMENTS shall be, and the same are hereby declared to be, subject to a perpetual non-exclusive easement in favor of all of the OWNERS of UNITS in the Condominium for their use and the use of their immediate families, guests, licensees and invitees, for all proper and normal non-commercial purposes, and for the furnishing of services and facilities for which the same are reasonably intended, for the enjoyment of said OWNERS of UNITS.”Master Deed, Article VII, file p.10

“Second Level: Commercial laundry room, four office areas, housekeeping room, janitorial closet, break room, employee restrooms, storage areas, reception area, pantry, dining area, meeting room and concierge area.”Master Deed, Exhibit B (description of UNIT CU-1), file p.44

“Third Level: Storage room, guest laundry room, janitorial closet, vending areas and phone room.”Master Deed, Exhibit B (description of UNIT CU-1), file p.44

“Provide guest access to the on-site commercial space (amenities) owned exclusively by Agent including, but not limited to: Seattle's Best Coffee Shop, Exercise Room, Business Center, Front Desk and Guest Laundry Rooms. Access and usage of these commercial spaced and amenities owned by Agent is not available to any unit owner or their guest(s) who are not on Agents rental program.”On-site Rental Management Agreement (program contract, not an HOA document), Section 2.2, p.2

“Each Unit is authorized 1 parking space. Each Unit owner, guest, tenant, and contractor must obtain a valid and HPCT approved parking permit before parking at HPCT.”Rules and Regulations (recorded 2020), Rule 4, p.2

“Only properly registered passenger vehicles displaying a valid parking permit issued by the Association are permitted to park at, or transit through, HPCT.”Rules and Regulations (recorded 2020), Rule 3, p.2

“Trash may not be left in the hallways or other common areas of the property. Trash must be disposed of in a proper container.”Rules and Regulations (recorded 2020), Rule 11, p.3

“As an appurtenance to COMMERCIAL UNIT CU-I, Grantor hereby grants to the OWNER of COMMERCIAL UNIT CU-I, a perpetual, commercially useable, exclusive easement to permit the owners, occupants and guests staying at certain off-site overnight rental accommodations (the "Adjacent Units") to make use of certain pool and sundeck amenities located within the Regime upon the terms and conditions contained herein.”Master Deed, Article VI, file p.9

“At no time may the number of Permitted Units exceed one hundred (100) without the prior written consent of the Board of Directors of the ASSOCIATION.”Master Deed, Article VI, file p.10

“The HOA paid on-site rental management an annual fee to cover the cost of key cards, set up of lockboxes, facilitation of receipt of business licenses in compliance with the City of Myrtle Beach ordinances, handling emergencies, etc.”December 2024 owner packet (DRAFT 2024 annual meeting minutes), Item 8.C Member Comments, p.5

“However, nothing herein shall be construed to limit the rights of the OWNER of the COMMERCIAL UNIT to make any residential, commercial or business use of such UNIT, the LIMITED COMMON ELEMENTS appurtenant thereto, or any easement areas reserved to such OWNER in this Master Deed, including, without limitation, the ability of the OWNER of COMMERCIAL UNIT CU-I to play live and/or recorded music on all pool decks and sun decks between the hours of 11:00 a.m to midnight.”Master Deed, Article XVI, file p.16

“Any form of smoking or vaping is strictly prohibited on the pool deck.”Rules and Regulations (recorded 2020), Rule 9, p.3

“Reserving pool chairs is not permitted; chairs unoccupied for longer than 30 minutes may be cleared for others' use by pool staff.”Rules and Regulations (recorded 2020), Rule 9, p.3

How much work lands on you?

Typical

What the rules make the owner personally responsible for: a local contact who answers in minutes, keys and passes, trash, fines for guest behaviour, vendor hours and elevators.

No response-time, trash-hauling or service-elevator rules and trash/linen chutes are association-maintained, but the owner must file a business license, obtain parking permits, register and insure every contractor, keep a key on deposit, handle own locks and check-in, and carries fines up to $1,000 per violation.

Local contactNo local-contact or agent-of-record rule for self-managing owners in the documents supplied. Outside rental management companies must post an in-unit placard with their contact details (Master Deed Art. XV). The association's contact information form asks for the owner's rental agency and emergency contact numbers.

Locks & keysOwners may be required to deposit a unit key under the association's control for emergency entry (Master Deed Art. XVII); if an owner fails to deposit a key the association may charge the cost of making one (Art. XXI). Unit entry doors must be kept closed and locked except during ingress and egress (Rule 16). The minutes record the HOA paying the on-site operator an annual fee for key cards and lockbox set-up, which suggests a building key-card system run by the operator; details unstated. (Program owners must keep a lock system compatible with the operator's/association's master key system at their own expense.) The deed also lets any person the owner authorizes, expressly including rental managers and their agents, enter in an emergency (Master Deed Art. XVII).

FinesRecorded schedule: health and safety violations $250-$1,000 each; all other violations $150-$250 first, $250-$500 second (same offense), $500-$1,000 third (same offense); fines may be treated as an assessment and constitute a lien. By-Laws: a fine is first assessed against the occupant, but if the occupant does not pay within the board's time the owner pays on notice; notice and a 10-day hearing request right apply before sanctions; board may also suspend voting/common-area use and use self-help such as towing. Throwing any object from a balcony results in immediate eviction of all occupants; balcony, pool, smoking, fireworks and grilling violators may be removed from the property at the manager's discretion.

Contractors & vendorsOwners are responsible for their contractors; contractors must be licensed in the City of Myrtle Beach, carry liability and workers' compensation insurance, and have certificates filed with the association at the 2nd-floor registration desk before any work in a unit; the contractor must show ID matching the insured company or parking permits are withheld; owners pay for any common-element damage and clean-up. Structural modifications need written association (and, while it owns any unit, grantor) consent; unauthorized alterations must be removed within three days of notice. Monthly pest control may enter and spray inside each unit.

AlsoBalcony furniture must be beige and balcony carpet must stay black; window treatments need a uniform backing; no signs, antennas, satellite dishes, clotheslines, awnings or storage on balconies; no feeding birds; no pets of any kind; no grilling on balconies or common areas; renters must be 21+ and may not live within 60 miles; owners must obtain and file a city STR business license; owner is liable for repair costs caused by guests to the extent not covered by association insurance and for any insurance-rate increase caused by unit use. Any separate owner policy must, where available, waive subrogation against other owners and the association and be bought from the association's own insurer for the same risk (Master Deed Art. XXIII). Parking is at the vehicle owner's sole risk and the association disclaims theft from units or vehicles (Rule 2).

What the documents say (14)

“All Unit owners are responsible for any contractors they hire to work inside their Units.”Rules and Regulations (recorded 2020), Rule 6, p.3

“Contractors used must be licensed in the City of Myrtle Beach. All contractors must be carry liability and workers compensation insurance, and a certificate of insurance for each type of coverage must be filed with the Association at the on-site registration desk located on the 2nd floor before the contractor performs any work within any Unit at HPCT*.”Rules and Regulations (recorded 2020), Rule 6, p.3

“A. For each health and safety violation: $250.00-$1,000.00 B. For all other violations: 1st Violation: $150.00-$250.00 for initial violation; 2nd Violation: $250.00-$500.00 for same offense; 3rd Violation: $500.00-$1,000.00 for same offense.”Rules and Regulations (recorded 2020), Rule 17 Fines, p.4

“The following schedule of fines shall apply to all violations and violators hereof, and may, in appropriate cases, be considered an assessment pursuant to the HPCT Master Deed:”Rules and Regulations (recorded 2020), Rule 17, p.4

“In the event that any occupant of a UNIT violates the Master Deed, By-Laws, or a rule or regulation and a fine is imposed, the fine shall first be assessed against the occupant; provided, however, if the fine is not paid by the occupant within the time period set by the Board, the Owner shall pay the fine upon notice from the ASSOCIATION.”By-Laws (Exhibit E to Master Deed), Article III Section 22 Enforcement, file p.66

“Throwing ANY object off of any Unit balcony at HPCT WILL result in all occupants of the Unit being immediately evicted from HPCT.”Rules and Regulations (recorded 2020), Rule 8, p.3

“To facilitate entry in the event of any such emergency, the OWNER of each UNIT, if required by the ASSOCIATION, shall deposit under the control of the ASSOCIATION a key to such UNIT.”Master Deed, Article XVII, file p.16

“Except during ingress and egress, entrance doors to each condominium Unit shall be kept closed and locked at all times.”Rules and Regulations (recorded 2020), Rule 16, p.4

“The only authorized color for balcony furniture is beige.”Rules and Regulations (recorded 2020), Rule 7, p.3

“In that regard, ASSOCIATION, or its designated contractor may perform monthly service for pest control which may include spraying within each UNIT and each OWNER of a UNIT is hereby so notified.”Master Deed, Article XVIII, file p.16

“No pets are permitted at HPCT.”Rules and Regulations (recorded 2020), Rule 14, p.4

“Grilling by Unit owners, their guests and invitees is strictly prohibited in any common area of HPCT or on any balcony.”Rules and Regulations (recorded 2020), Rule 13, p.4

“In case of any emergency originating in or threatening any UNIT, regardless of whether the OWNER is present at the time of such emergency, the Board of Directors of the ASSOCIATION or any other person authorized by it or any other person or entity authorized by the UNIT OWNER (including rental managers and their agents), shall have the right to enter such UNIT for the purpose of remedying or abating the cause of such emergency, and such right of entry shall be immediate, but this shall not be construed as creating any obligation to do so.”Master Deed, Article XVII, file p.16

“All such insurance obtained by the OWNER of each UNIT shall, wherever such provision shall be available, provide that the insurer waives its right of subrogation as to any claims against other OWNERS of UNITS, the ASSOCIATION, and the respective servants, agents and guests of said other OWNERS and the ASSOCIATION, and such other insurance coverage shall be obtained from the insurance company from which the ASSOCIATION obtains coverage against the same risk, liability or peril, if the ASSOCIATION has such coverage.”Master Deed, Article XXIII, file p.21

Is the money healthy?

Caution

Whether the association can pay for the building without surprise bills: reserves, special assessments, insurance deductibles, how fast dues are rising, and how much of the fee passes through to a master association.

Strong inclusions (in-unit electric, water, cable, internet, pest, building insurance), audited financials and a 1.4% 2025 increase, but reserves are 9.2% general (10.7% with the operating reserve) with no reserve study, insurance is 28% of the budget after a 31.6% jump, an insurance assessment was levied in 2024 and another is pre-announced for 2025, and dues rose 11.8% the prior year.

2025 budget$1,646,153

Dues change+1.4% on the year

Reserves9% of budget

Reserve balance$395,170

Special assessments2024 per-unit amount unstated; $80,362 collected association-wide January-August 2024 Insurance assessment due May 1, 2024 to cover the 2024-2025 property insurance renewal shortfall (management answers May 2024; draft 2024 minutes); 2025 to be set at the early-March 2025 renewal; equals the difference between the actual renewal premium and the insurance reserve bank balance as of March 1, 2025 Planned insurance assessment written into the 2025 budget; minutes state all owners will be charged for the shortfall once the 2025-2026 premium is known

InsuranceInsurance Expense line: $343,000 (2023) to $451,450 (2024, +31.6%) to $463,872 (2025); the 2025 figure is the actual 2024-2025 premium and a further 'Insurance assessment' is planned for the March 2025 renewal. The 2024 dues breakdown shows roughly 28% of each unit's monthly dues is the insurance portion (Efficiency $293.48 of $1,038.15; Shotgun Suite $370.81 of $1,311.71). The association uses a layered property program; the minutes note the market 'had begun to level out for the first time in three to four years'. Balance sheet at 8/31/2024 held $114,882 in an insurance escrow and $234,299 prepaid insurance. Master Deed does not require the casualty policy to cover replacement of pool and pool-deck amenities. Rules footnote warns the association makes no representation that required coverages will adequately insure owners. The Master Deed requires the association's casualty policy to cover all of the UNITS as well as the common elements at full replacement value (Art. XXIV A), so the building policy is the primary cover for unit structure; an owner pays the share of any repair to owner-maintained items that falls inside the policy deductible (Art. XXI).

Wind deductibleunstated (no policy, certificate or declarations supplied)

FloodMaster Deed requires the association's casualty policy to include flood damage 'if available'; whether a flood policy is in force and its terms are unstated

DelinquencyDues due the 1st of each month and considered late if not received by the 10th; late and administrative fees apply (cover letter). Master Deed: payment is in default if not paid by the due date; board may accelerate the year's installments; if unpaid 20 days after due date the association may enforce by any means under the Act including foreclosure and sale; delinquent amounts bear interest at the South Carolina legal judgment rate; $25 late fee per installment unpaid 20 days after due date; owner personally liable for collection costs and attorney's fees; lien on the unit; purchaser at voluntary sale is jointly liable for the seller's unpaid assessments. By-Laws treat a monthly installment as delinquent on the 15th. Program owners also authorize the operator to deduct delinquent HOA dues from rental proceeds plus a $75 service charge per deduction. A purchaser at foreclosure or judicial sale takes free of earlier delinquencies, which are then absorbed by all owners as a common expense (Master Deed Art. XXVII K).

What the documents say (31)

“TOTAL OPERATING EXPENSES 1,623,380 1,646,153 22,773 1.40%”December 2024 owner packet (2025 Approved Operating Budget), p.6

“The 2025 budget's provision for insurance costs reflects the actual premium amount from the 2024-2025 policy period with an additional planned 'Insurance assessment'. This "Insurance assessment" will be derived at renewal in early March and be assessed based on the difference in the actual insurance renewal costs and the balance in the reserve banking account as of March 1, 2025.”2025 Approved Operating Budget, footnote, p.1

“Consequently, once the premium for the 2025-2026 renewal is established, all owners will be charged for the shortfall resulting from the increase.”December 2024 owner packet (DRAFT 2024 annual meeting minutes), Item 8.B 2025 Budget Review, p.5

“Over the last 4 years the average HOA budget increased by 9%. Insurance had been tough the past four (4) years and had put a financial strain on the HOA. The budget had to increase to recoup the deficit from insurance while maintaining healthy reserves.”December 2024 owner packet (DRAFT 2024 annual meeting minutes), Item 8.C Member Comments, p.5

“She next reported on the Revenue/Expense Statement (Exhibit "E"), noting that the revenue for the period was $1,151,646 consisting of $1,064,653 in regular assessments, $80,362 in insurance assessment, $5,885 in interest income, and $746 in fines/late fees.”December 2024 owner packet (DRAFT 2024 annual meeting minutes), Item 6.C Financial Position Summary August 31, 2024, p.4

“She then reported on the reserve position (Exhibit "F"); noting that the total assets were $395,170.”December 2024 owner packet (DRAFT 2024 annual meeting minutes), Item 6.C, p.4

“83300 - Insurance Expense 343,000 451,450”2024 Approved Operating Budget, Other Expenses (2023 and 2024 columns), p.1

“63 Efficiency 180,000 0.00780087 928.64 1,038.15 109.51”2024 Approved Operating Budget, Monthly Dues table (2023 vs 2024), p.2

“45 Shotgun Suite 227,430 0.00985640 1,173.34 1,311.71 138.37”2024 Approved Operating Budget, Monthly Dues table (2023 vs 2024), p.2

“63 Efficiency 180,000 180,000 0.00780087 1,038.15 1,052.96 14.80”December 2024 owner packet (2025 Approved Operating Budget dues breakdown), p.6

“45 Shotgun Suite 227,430 227,430 0.00985640 1,311.71 1,330.41 18.70”December 2024 owner packet (2025 Approved Operating Budget dues breakdown), p.6

“What do they include? Electric, water/sewer, cable, wi-fi, building insurance”Management company answers, May 2024, p.1

“Are there any special assessments or insurance assessments? Yes. An insurance assessment which was due on May 1, 2024.”Management company answers, May 2024, p.1

“Please be reminded that HOA payments are due on the first (1st) day of the month and considered late if not received by the tenth (10th) day of the month. Delinquent assessment payments are subject to late and administrative fees, if not received in a timely manner.”December 2024 owner packet (cover letter), p.1

“Further, a late fee of $25.00 shall be assessed for each installment not paid within twenty (20) days after the due date thereof.”Master Deed, Article XXVII paragraph G, file p.28

“In the event any assessment, installment, or accelerated installment is not paid within twenty (20) days after its due date, the ASSOCIATION, through its Board of Directors, may proceed to enforce and collect the assessment against the UNIT OWNER owing the same in any manner provided for by the Act, including the rights of foreclosure and sale.”Master Deed, Article XXVII paragraph G, file p.28

“2. Expenses declared common expenses by provisions of this Master Deed, including electricity charges for lighting, heating and air conditioning all units;”Master Deed, Article XXXVI Definitions, paragraph G, file p.36

“The Building was constructed in 1998.”Master Deed, Article XXXVII, file p.37

“Based upon this investigation, Grantor has made an initial contribution in the amount of $220,000.00 to the ASSOCIATION as reserves for replacements and repairs of components of the Buildings to help insure that adequate reserves for such repairs and replacements are available.”Master Deed, Article XXXVII, file pp.37-38

“Due to issues of availability and/or affordability, such casualty insurance shall not, however, be required to cover the replacement cost of pool and pool deck amenities.”Master Deed, Article XXIV paragraph A, file p.22

“The Board of Directors of the ASSOCIATION shall approve and issue, without any consent of the CO-OWNERS, any assessment for Common Expenses necessary for the restoration or repair of Regime Property in accordance with this Article.”Master Deed, Article XXIV, file p.24

“The Board of Directors shall have the power to borrow money for the purpose of repair or restoration of the Common Areas or for the purpose of funding budgetary shortfalls, without the approval of the membership; provided, however, the Board shall obtain prior Voting Member approval by majority vote for special assessments in the event that the proposed borrowing is for the purpose of modifying, improving, or adding amenities, or the total amount of such borrowing exceeds or would exceed ten (10%) percent of the budgeted gross expenses of the ASSOCIATION for that fiscal year.”By-Laws (Exhibit E to Master Deed), Article III Section 20 Borrowing, file p.66

“The initial term of this Agreement shall commence on the date set forth in the first paragraph of this Agreement and, subject to the rights of Agent hereinabove, and any termination by Agent based upon the sale of the Unit, shall expire on December 31, 2024.”On-site Rental Management Agreement (program contract, not an HOA document), Section 12.0 Term, p.7

“Owner shall pay to Agent and Agent shall deduct as "Commission" for its services under this Agreement thirty-five (35.0%) of all Gross Unit Income.”On-site Rental Management Agreement (program contract, not an HOA document), Section 4.1, p.4

“39500 - YTD General Reserve Funding 146,300 150,689 4,389 39510 - YTD Operating Reserve Funding 25,000 25,000 =”December 2024 owner packet (2025 Approved Operating Budget), Other Expenses, p.6

“TOTAL INCOME 1,623,380 1,655,153 31,773”December 2024 owner packet (2025 Approved Operating Budget), Revenues, p.6

“Casualty insurance covering all of the UNITS, and COMMON ELEMENTS, in an amount equal to the maximum insurance replacement value thereof, exclusive of excavation and foundation costs, as determined annually by the insurance carrier”Master Deed, Article XXIV paragraph A, file pp.21-22

“Provided that the total cost of acquiring the improvements will not exceed two percent (2.0%) of the budgeted gross expenses of the ASSOCIATION for the then current fiscal year, the ASSOCIATION may, with the approval of the Board of Directors, assess each Unit according to its Percentage Interest in the COMMON ELEMENTS of the Regime for the purpose of acquiring additional COMMON ELEMENTS.”Master Deed, Article XX, file p.18

“63 Efficiency 180,000 0.00780087 705.67 744.68 39.01”2024 Approved Operating Budget, Monthly Dues (operating portion) table, p.2

“63 Efficiency 180,000 0.00780087 222.97 293.48 70.50”2024 Approved Operating Budget, Monthly Insurance table, p.2

“The HOA paid on-site rental management an annual fee to cover the cost of key cards, set up of lockboxes, facilitation of receipt of business licenses in compliance with the City of Myrtle Beach ordinances, handling emergencies, etc.”December 2024 owner packet (DRAFT 2024 annual meeting minutes), Item 8.C, p.5

Who's really in charge?

Caution

Who holds the power the documents hand out: an owner-elected board, or a developer or commercial-unit owner with deed-level rights over rentals, guest services and the building's name.

The board is owner-elected with open meetings and developer control has expired, but the commercial unit holds a deed-level monopoly on rental and guest services on the common elements, consent rights over pool-deck changes, maintenance timing, rules and key amendments, a non-recusing ex officio seat, and collects three-year HOA proxies from program owners.

StructureOne association

Commercial unitYes, with its own deed rights

On-site operatorPavilion Resort Management, LLC

BoardFive directors, owner-elected since the Class II (CU-1) control period ended (no later than March 1, 2016); initial staggered 3/2/1-year terms, then two-year terms; directors need not be members; nominating committee plus floor nominations; any director removable with or without cause by majority vote of the membership; board may remove a director with three consecutive unexcused absences or 30+ days delinquent. CU-1 may also appoint a non-voting ex officio director who receives notice of and attends all board meetings with full inspection rights. The draft October 2024 minutes show a five-member board with two seats elected by the owners that year (incumbents re-elected over two other owner candidates). Officers elected annually by the board; management contracts limited to two years; annual audited financial statements required by the By-Laws and a clean 2023 audit opinion was reported. By-Laws also require open board meetings (executive session only on FOIA-type matters), at least two board meetings a year, quarterly financial and delinquency reports, an audited annual report to all members within 120 days of year-end, and member inspection of books, minutes and the membership register (By-Laws Art. III Secs. 9, 15 and 19; Art. VI Sec. 4).

Developer rightsGrantor (Pavilion Condo Conversions, LLC) reserved rights to add up to three more phases within 2,000 feet, which expired March 1, 2016; sales-office/model/signage use while it owned five or more units; written consent to structural modifications while it owns any unit; grantor-favoring provisions amendable only with grantor consent; scrivener-error amendments with CU-1 approval. Management answers (May 2024) state the developer holds no right of first refusal. Master Deed disclaims all warranties ('AS IS' conversion of a 1998 building) and imposes binding arbitration and a jury-trial waiver on all owners.

Commercial-unit rightsDeed-level: CU-1 (described in the operator's own agreement as 'the Agent's Commercial Unit') holds the exclusive right to run rental management, reservations, key pick-up/drop-off, front desk, concierge, guest laundry, cable/internet/telephone service and all other listed commercial uses; owners and the association are barred from any commercial activity on the common elements and this restriction needs a unanimous owner vote plus CU-1 written consent to change. CU-1 also holds perpetual exclusive easements for advertising on corridors, elevators, building exterior and parking areas; food and beverage sales and seating on all pool and sun decks; live or recorded music on the decks 11 a.m. to midnight; an exclusive easement to provide telephone, cable TV and internet to the units and ownership of the switchboard; control of the marquee's movable type; roof antenna rights; a commercially usable easement letting guests of up to 100 off-site 'Adjacent Units' use the pools and decks for an annual fee; the right to alter CU-1 without board consent; sole use of janitorial closets. CU-1 written consent is required for any pool-deck change, for deferring the Maintenance Schedule, for rules that affect it, and for amending Article XIV paragraph 2 (the timeshare ban and daily/weekly/monthly rental right), Articles XXII and XXXII, any provision reserving a CU-1 right (Art. XXIX(vi)), and By-Laws III.2 and III.3. Its board representative need not recuse on contracts between CU-1's owner and the association, and CU-1 may specifically enforce Article XIV with fee-shifting. The association pays an on-site services contract ($110,816 in 2025) and an annual fee to the on-site rental management for key cards, lockboxes, business-license handling and emergencies.

VotesOne vote per unit weighted by percentage interest (Efficiency 0.780087%, Shotgun Suite 0.985640%, CU-1 6.500725%, so the operator alone holds about 6.5% of the vote as a Class I member; during the expired Class II period it carried four times that weight and a veto over all board actions). Quorum is a simple majority of total votes; proxies must reach the secretary 48 hours before the meeting; co-owners designate one voting member. Note: owners who sign the on-site program agreement grant the operator's manager a three-year proxy to vote their HOA membership at all annual and special meetings, which concentrates voting power with the operator.

Changing the deedMaster Deed: proposed by board majority or 25% of interest, approved by 67% of the undivided interest at a special meeting called on 20-60 days' notice; recorded within 30 days. Exceptions requiring unanimous owner (and mortgagee) consent: percentage interests and assessment basis; unanimous owner vote (per Art. XIV itself) plus CU-1 consent under Art. XXIX(vi): the Article XIV paragraph-3 commercial-activity restriction; CU-1 written consent: Article XIV paragraph 2 (timeshare ban and the owners' daily/weekly/monthly rental right, per Art. XXIX(iv) read with Art. V), Articles XXII, XXXII and any CU-1 right; grantor consent for grantor rights; mortgagee consent where their rights are affected. By-Laws: 67% of total votes, never less than the threshold of the clause being amended, with CU-1/grantor consent for their reserved rights. Termination of the regime: unanimous owners and lienholders.

Disputes or lawsuitsManagement answers (May 2024): no pending litigation. Master Deed Article XXXIX requires binding arbitration in Horry County of all claims under the deed or about construction/condition (collection suits, TRO suits and CU-1's Article XIV enforcement suits excepted), with jury trial waived (Article XXXVIII); prevailing-party fees. The on-site program contract also mandates arbitration. No disputes are mentioned in the 2024 minutes.

What the documents say (21)

“The OWNER of the COMMERCIAL UNIT shall have the right at any time to terminate Class II membership (the "Class II control period") by filing an instrument in the records of Horry County, South Carolina so doing, and in any event the Class II membership shall terminate no later than March 1, 2016.”By-Laws (Exhibit E to Master Deed), Article II Section 2 Voting Rights, file p.57

“At the first annual meeting of the ASSOCIATION following the expiration or sooner termination of the Class II control period, five (5) Directors shall be elected.”By-Laws (Exhibit E to Master Deed), Article III Section 5 Election and Term of Office, file p.60

“In addition to the Directors elected under the preceding paragraph, the Owner of Commercial Unit CU-I may designate and appoint a representative to serve as an additional ex officio Director. Such representative shall not be entitled to vote on issues before the Board, but shall receive notice of all Board meetings and other matters before the Board and shall be entitled to attend and express opinions on all issues raised at all meetings and shall be entitled to the same rights of inspection as any other Director under Article VI, Section 4(c).”By-Laws (Exhibit E to Master Deed), Article III Section 5, file p.61

“Any representative of the OWNER of the COMMERCIAL UNIT serving on the Board of Directors of the ASSOCIATION shall not be required to disqualify himself upon any vote on any management contract or other matter between the OWNER of the COMMERCIAL UNIT and the ASSOCIATION where the OWNER of the COMMERCIAL UNIT may have a pecuniary or other interest.”Master Deed, Article XXXII, file p.34

“Provided, however, any such rules or regulations that purport to diminish, abrogate or in any way affect the COMMERCIAL UNIT, including the LIMITED COMMON ELEMENTS appurtenant thereto or other rights reserved herein in favor of such UNITS or the OWNERS thereof shall not be binding upon the OWNER of such COMMERCIAL UNIT, its successors and assigns, unless and until such OWNER consents in writing to the same.”Master Deed, Article XV, file pp.14-15

“Notwithstanding anything herein to the contrary, no removal, alteration or improvement of pool deck or pool amenities shall take place unless the OWNER of COMMERCIAL UNIT CU-l has first consented in writing to the same.”Master Deed, Article XX, file p.18

“The Board of Directors of ASSOCIATION may not defer or delay the timing of the repair and replacements of the portions of the COMMON ELEMENT as set forth in the Maintenance Schedule without the written consent of the OWNER of the COMMERCIAL UNIT and all such repairs and replacements must be undertaken by ASSOCIATION at the times provided in the Maintenance Schedule unless the OWNER of the COMMERCIAL UNIT otherwise consents in writing.”Master Deed, Article XXII, file p.20

“The provisions of this Section XXII may not be amended without the express written consent of the OWNER of the COMMERCIAL UNIT.”Master Deed, Article XXII, file p.20

“Provided, however, the OWNER OF COMMERCIAL UNIT CU-I is hereby granted for the benefit of itself, its successors and assigns, an exclusive, transferable, perpetual easement appurtenant to COMMERCIAL UNIT CU-I for the purpose of providing telephone, cable television and internet service to the UNITS, said easement being over, upon and through all wiring and other fixtures and equipment used for the purposes of providing telephone, cable television, cable pay per view movies, internet service, and wireless broadband internet access or other communication services to the Regime Property, and all of the other terms and conditions of this Master Deed are made subject to the terms of this Easement.”Master Deed, Article VIII, file p.11

“Further, the telephone switchboard equipment located within the Regime is and shall remain, property of the OWNER of COMMERCIAL UNIT CU-I, its successors or assigns.”Master Deed, Article VIII, file p.11

“Any OWNER of a COMMERCIAL UNIT shall have the right to specifically enforce, inter alia, the provisions of Article XIV restricting the right and authority of the ASSOCIATION or the OWNERS of RESIDENTIAL UNITS to conduct commercial activities.”Master Deed, Article XXX paragraph F, file p.33

“Subject to the provisions hereinafter provided, these By-Laws may be amended only by the affirmative vote (in person or by alternate) or written consent of Voting Members representing sixty-seven (67%) percent of the total votes of the ASSOCIATION, including any UNITS owned by the GRANTOR.”By-Laws (Exhibit E to Master Deed), Article VI Section 6 Amendment, file p.69

“No management contract may have a term in excess of two (2) years.”By-Laws (Exhibit E to Master Deed), Article III Section 18(b), file p.64

“GRANTOR HEREBY DECLARES, ON BEHALF OF ITSELF, THE ASSOCIATION, AND ANY OWNER OF A UNIT, THAT ANY AND ALL RIGHT TO TRIAL BY JURY SHALL BE WAIVED BY GRANTOR, THE ASSOCIATION, AND EACH OWNER OF A UNIT IN ANY DISPUTE, PROCEEDING, CASE OR CONTROVERSY ARISING UNDER OR RELATED TO THE WITHIN MASTER DEED.”Master Deed, Article XXXVIII Waiver of Jury Trial, file p.38

“Any pending litigation in this community/building? No”Management company answers, May 2024, p.1

“Does the developer of this community/building have the First Right of Refusal? No”Management company answers, May 2024, p.1

“I/We the undersigned Owner(s) of the Unit and member(s) of Holiday Pavilion Condominium Tower Homeowners' Association, Inc., a SC non-profit corporation, do hereby appoint the Agent's Manager or his designee, with full power of substitution, as attorney and agent for me/us, and in my/our name, place and stead, to vote as my/our Proxy at the annual and special meetings of the membership of Holiday Pavilion Condominium Homeowners' Association, Inc., to be held from time to time pursuant to the notice provisions of the regime documents of Holiday Pavilion Condominium Homeowners' Association, Inc., for the purpose of establishing a quorum and voting on any and all matters which may arise at any such annual and/or special meeting. This proxy shall remain effective for a period of three (3) years from the date hereof.”On-site Rental Management Agreement (program contract, not an HOA document), Section 14.0 Proxy, p.7

“In the event of any sale or lease of the Agent's Commercial Unit at the Resort, Agent shall have the right to assign this Agreement to the grantee or lessee, and the Agent shall thereafter have no obligation to the Owner for any matters arising under this Agreement after the date of such assignment.”On-site Rental Management Agreement (program contract, not an HOA document), Section 11.0, p.6

“Subject to the provisions of Section 15 of this Article, all meetings of the Board shall be open to all Voting Members, but Voting Members other than Directors may not participate in any discussion or deliberation unless permission to speak is requested on his or her behalf by a Director.”By-Laws (Exhibit E to Master Deed), Article III Section 15 Open Meetings, file p.62

“The annual report referred to above shall be prepared on an audited basis, by an independent certified public accountant for each fiscal year.”By-Laws (Exhibit E to Master Deed), Article III Section 19(g), file p.65

“The Board may, with the approval of OWNERS owning more than fifty percent (50%) of the amount of the Percentage Interest in the COMMON ELEMENTS, acquire additional COMMON ELEMENTS, the cost of which would exceed the two percent (2.0%) limitation set forth above.”Master Deed, Article XX, file p.18

03 Pros and cons

For the owner who runs it themselves.

The same building reads very differently to an owner on the rental program and an owner on Airbnb. This list is for the second one.

Working for you

The Master Deed itself guarantees every owner's right to rent on a daily, weekly or monthly basis, so nightly Airbnb/VRBO stays are permitted at the deed level with no minimum stay (Master Deed, Art. XIV, file pp.13-14).
The paragraph that guarantees daily, weekly or monthly rentals cannot be amended without the commercial-unit owner's written consent on top of the 67% owner vote, so a future owner majority cannot ban short-term rentals on its own (Master Deed Art. XIV para. 2, file pp.13-14; Art. XXIX(iv), file p.31; Art. V, file p.9).
There is no mandatory on-site program: the By-Laws say the association shall not be in the rental-management business, and the deed expressly contemplates outside rental management companies serving owners (By-Laws Art. I Sec. 4, file p.56; Master Deed Art. XV, file p.15).
Dues bundle the big variable costs: in-unit electricity, water/sewer, fuel, cable, internet/wi-fi, monthly in-unit pest control and the building's property insurance, which simplifies STR operating math (2025 Budget p.1; Management company answers, May 2024, p.1; Master Deed Art. XXXVI(G), file p.36).
The 2025 budget rose only 1.40% and dues only about 1.4% ($1,038.15 to $1,052.96 Efficiency; $1,311.71 to $1,330.41 Shotgun Suite) (December 2024 packet, 2025 budget p.6).
Financials are audited annually by an independent CPA, a clean opinion was reported for 2023, reserve assets were $395,170 at 8/31/2024, and the board uses the Revenue Ruling 70-604 election to roll excess income into the next year's assessments (December 2024 packet, draft minutes pp.3-4).
Developer and operator control of the board ended no later than March 1, 2016; the board is now owner-elected, directors can be removed by majority vote, and management says the developer holds no right of first refusal (By-Laws Art. II Sec. 2 and Art. III Secs. 5-6, file pp.57-61; Management company answers, May 2024, p.1).
The pools, pool decks, spas and sun decks are common elements open to all owners' guests under a perpetual non-exclusive easement, not program-only amenities (Master Deed Art. VII, file p.10).
Fines follow a published, recorded schedule and the By-Laws require written notice and a hearing opportunity before any sanction, with fines assessed first against the offending occupant (Rules 2020, Rule 17, p.4; By-Laws Art. III Sec. 22, file p.66).
Trash and linen chutes are association-maintained common elements, so there is no owner trash-hauling or service-elevator rule in the documents (Master Deed Art. XXII, file p.19; Rules 2020, Rule 11, p.3).
Owners who try the on-site program can leave it: after the initial term either party may cancel on 30 days' notice for any reason, and the operator advertises at its own expense for a 35% commission (plus the program's scheduled fees: annual maintenance fee $175/$199, winter deep clean $130/$175, 1.5% replacement fee, telephone fee, a pro-rata business-license share and up to $1,500 a year of operator-chosen upgrades) (Rental Management Agreement, Secs. 2.3, 2.13, 3.14, 4.1 and 12.0, pp.2-7; Fees and Requirements Schedule, Exhibit A, p.1; program contract, not an HOA rule).
The association's casualty policy must cover every unit as well as the common elements at full replacement value, so the building policy, not the owner's HO-6, is the primary cover for the unit's structure (Master Deed Art. XXIV para. A, file pp.21-22).
Board meetings are open to all owners, quarterly financials and a delinquency report must be produced, the annual report must be audited and sent to every member within 120 days of year-end, and owners may inspect the books, minutes and membership register (By-Laws Art. III Secs. 15 and 19, file pp.62-65; Art. VI Sec. 4, file p.68).
Family gatherings, cookouts and picnics on the common elements are expressly not 'commercial activity', so hosting guests on the decks is not a deed violation (Master Deed Art. XIV, file p.14).

Watch-outs

Deed-level monopoly: only Commercial Unit CU-1 (the on-site operator's unit) may run rental management, reservations, key pick-up/drop-off, front desk, concierge or guest laundry on the property; every other owner is barred from using any common element 'to engage in the business of renting', the clause says it cannot be amended without a unanimous owner vote, and because it reserves exclusive rights to CU-1 any change also needs CU-1's written consent (Master Deed Art. XIV, file p.14; Art. XXIX(vi), file p.31).
The front desk, exercise room, business center, guest laundry and coffee shop are inside CU-1 and the operator's own contract states they are not available to owners or guests who are not on its program, so your Airbnb guests get the pool but not a staffed desk or gym (Master Deed Exhibit B, file p.44; Rental Management Agreement Sec. 2.2, p.2).
The operator owns the 'Holiday Pavilion' and 'Holiday Pavilion Resort' service marks and the deed lets it impose rules on how owners and their managers advertise units, so listing copy and photos may be policed by your competitor (Master Deed Art. VII, file p.11).
You cannot rent until a City of Myrtle Beach STR business license is on file at the on-site 2nd-floor registration desk (the deed assigns the 2nd-floor reception and concierge areas to CU-1, and the HOA pays the operator an annual fee to handle license receipt, key cards and lockboxes), and while it is not, parking permits for you, your guests and your contractors are suspended (Rules 2020, Rules 4-5, pp.2-3; Master Deed Exhibit B, file p.44; December 2024 packet minutes p.5).
Rentals are limited to guests 21 and older and no unit may be rented to anyone living within 60 miles, cutting off the local weekend market (Rules 2020, Rule 15, p.4).
Insurance is 28% of the budget and jumped 31.6% from 2023 to 2024; the association levied an insurance assessment due May 1, 2024, and the 2025 budget pre-announces another assessment to be sized at the March 2025 renewal (2024 Budget p.1; 2025 Budget footnote p.1; December 2024 packet minutes p.5; Management company answers, May 2024, p.1).
Dues rose 11.8% from 2023 to 2024 and the minutes admit the budget grew an average 9% a year over four years, so the 1.4% 2025 increase is the exception, not the trend (2024 Budget p.2; December 2024 packet minutes p.5).
Reserve funding is only $150,689 to the general reserve (9.2% of the budget) plus $25,000 to an operating reserve, $175,689 or 10.7% in all, for a building built in 1998; no reserve study was supplied and the Master Deed's Exhibit F 'Maintenance Schedule' is a blank heading (December 2024 packet, 2025 budget p.6; Master Deed Art. XXXVII, file p.37; Exhibit F, file p.71).
CU-1 holds consent/veto rights over the board: no pool-deck change, no deferral of major repairs, and no rule that touches CU-1 is effective without its written consent, and its ex officio director and its owner never have to recuse on contracts with the association (Master Deed Arts. XV, XX, XXII, XXXII, file pp.14-15, 18, 20, 34; By-Laws Art. III Sec. 5, file p.61).
Guests of up to 100 off-site 'Adjacent Units' may use your pools and decks under a perpetual CU-1 easement (the HOA budgets only $26,400 a year for this), adding crowding you cannot vote away (Master Deed Art. VI, file pp.9-10; 2025 Budget p.1).
Every owner who joins the on-site program signs a three-year proxy letting the operator's manager vote their HOA membership, which concentrates voting power with the commercial-unit owner (Rental Management Agreement Sec. 14.0, p.7; program contract).
Parking is one permit per unit in lots across Ocean Boulevard under an easement the grantor can relocate without owner or board consent (Master Deed Art. VI, file p.9; Rules 2020, Rule 4, p.2).
Every contractor you send in must be city-licensed and have liability and workers' comp certificates filed at the registration desk before work starts, with the owner liable for any common-element damage (Rules 2020, Rule 6, p.3).
Fines run $150-$1,000 per violation (health/safety $250-$1,000), unpaid occupant fines fall on the owner and become a lien, and any object thrown from a balcony gets all occupants evicted immediately (Rules 2020, Rules 8 and 17, pp.3-4; By-Laws Art. III Sec. 22, file p.66).
The board may borrow up to 10% of the budget and issue casualty-repair assessments without a member vote, and all deed disputes go to binding arbitration with jury trial waived (By-Laws Art. III Sec. 20, file p.66; Master Deed Art. XXIV, file p.24; Arts. XXXVIII-XXXIX, file pp.38-40).
The operator may play live or recorded music on all pool and sun decks from 11 a.m. to midnight and sell food and drink there, which you cannot regulate (Master Deed Art. XVI, file p.16; Art. IV, file pp.8-9).
No pets at all, no grilling on balconies, beige-only balcony furniture and no exterior signage; balcony, pool, smoking, fireworks and grilling violations also carry removal from the property at the manager's sole discretion (Master Deed Art. XV, file p.15; Art. XIX, file p.17; Rules 2020, Rules 7-10, 12-14, pp.3-4).
The 2024 dues answer from management ($1,311.71) matches the Shotgun Suite rate; total dues for that type are now $15,965 a year before any insurance assessment (Management company answers, May 2024, p.1; December 2024 packet p.6).
The board may assess up to 2% of the budget to acquire new common elements (pools, water features, parking) without an owner vote, and a bare majority of percentage interest can approve more (Master Deed Art. XX, file p.18).
Any separate policy you buy must waive subrogation and, where available, come from the association's own insurer for the same risk, and you pay the deductible share on repairs to owner-maintained items even when the building policy responds (Master Deed Arts. XXI and XXIII, file pp.19-21).
The 2024 increase was driven by insurance: the insurance portion of monthly dues rose 31.6% while the operating portion rose 5.5%, and the 2025 budget simply carries the 2024-2025 premium forward with the renewal shortfall to be billed separately (2024 Budget p.2; 2025 Budget footnote p.1).

Unit type	Per month	Per year
Efficiency (63 units, 0.780087% interest each)	$1,053	$12,636
Shotgun Suite (45 units, 0.985640% interest each)	$1,330	$15,965
Commercial Unit CU-1 (1 unit, 6.500725% interest)	$8,775	$105,296

Holiday Pavilion Resort.

The documents behind this page.

What the documents decide
before your first guest books.

Can you rent it your way?

Will your guests be treated like guests?

How much work lands on you?

Is the money healthy?

Who's really in charge?

For the owner who runs it themselves.

Working for you

Watch-outs

What you pay, and where it goes.

Regular assessments, 2025

What the dues cover

Where the budget goes

What to put in the house manual.

What to ask the association for.

Have the documents read
for the building you are weighing.

Holiday Pavilion Resort.

The documents behind this page.

What the documents decidebefore your first guest books.

Can you rent it your way?

Will your guests be treated like guests?

How much work lands on you?

Is the money healthy?

Who's really in charge?

For the owner who runs it themselves.

Working for you

Watch-outs

What you pay, and where it goes.

Regular assessments, 2025

What the dues cover

Where the budget goes

What to put in the house manual.

What to ask the association for.

Have the documents readfor the building you are weighing.

What the documents decide
before your first guest books.

Have the documents read
for the building you are weighing.