Wave Rider Resort HOA Risk Assessment: Workable with rules

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?

Favorable

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.

The deed expressly permits use by tenants and lessees with no minimum stay, no on-site program, no registration and no disclaimer (short-term rental is never named either way), held back from 5 only by the rules' undefined 'rooming house/boarding house' commercial-activity clause and the exterior sign bans.

Short-term rentalsAllowed

Must use on-site programNo

Owner may rent it personallyYes

Off-site manager allowedYes

Registrationunstated for rentals; every vehicle must display a complex parking pass obtained from the front office, and tenants/guests with service animals must present documentation at check-in / the front desk

Advertising rulesNo 'For Rent' or 'For Sale' signs on the exterior of any unit or visible from the exterior without Board written approval (Rules); the Master Deed itself also bars 'For Sale' signs or the like on any common element or in any unit visible from a common element or street (Art. XIII); no other advertising, resort-name or photo rules stated

Disclaimer in your listingNot required

Vote to change rental rulesThe residential/tenant use clause is in the Master Deed (Art. XIII), which requires approval of co-owners owning at least 51% of the Units and 51% of the common-element interest plus first mortgagees holding 51% of the interest (Art. XXVI); the Board alone may make and amend rules governing use of the property so long as they do not conflict with the Master Deed (By-Laws 4(j)(iv))

What the documents say (9)

“Each Unit is hereby restricted to residential use by the Co-Owner or Co-Owners thereof, and their immediate families, guests, tenants, lessees, licensees and invitees;”Master Deed, Article XIII, Residential Use Restriction, deed p. 7 (PDF page 11)

“No Unit shall be "time-shared", nor shall any Unit be owned, used or operated in violation of the statutory provisions regulating Vacation Time Sharing Plans, S.C. Code Ann. Sections 27- 32-10 et seq. (1996 Supp.)”Master Deed, Article XIII, deed p. 7 (PDF page 11)

“The General Common Elements shall be, and the same are hereby declared to be subject toa perpetual non-exclusive easement in favor of all of the Co-Owners of Units in the Regime for their use and the use of their immediate families, tenants, lessees, licensees, guests, and invitees, for all proper and normal purposes”Master Deed, Article IX, deed p. 6 (PDF page 10)

“No commercial business activity, including but not limited to a rooming house, boarding house, gift shop, antique shop, professional office, beauty/barber shop, or the like of any trade of any kind whatsoever shall not be carried out, upon or in any unit without the express written consent of the Board of Directors.”Rules and Regulations (Rev. 7/24/2020), BUSINESS ACTIVITY, p. 2

“No signs, advertising or notices of any kind, including but not limited to, "For Rent" or "For Sale" signs shall be permitted to be displayed on the exterior of any unit nor shall be posted or displayed in such a manner as to be visible from the exterior of any unit except as permitted by written approval by the Board of Directors.”Rules and Regulations (Rev. 7/24/2020), REMODELING section (signs paragraph), p. 4

“OCCUPANT shall refer to any owner of a condominium unit, his invitees, tenant or guest.”Rules and Regulations (Rev. 7/24/2020), DEFINITIONS, p. 1

“All present or future Co-Owners, tenants, or any other person who might use the facilities of the Regime in any manner, are subject to the provisions of this Master Deed and all documents appurtenant hereto and incorporated herewith, and the mere acquisition or rental of any Unit, or the mere act of occupancy of any Unit, shall signify that the provisions of this Master Deed are accepted and ratified in all respects.”Master Deed, Article XXVIII, deed p. 16 (PDF page 20)

“neither this Master Deed nor any of its provisions shall be revoked or amended without the approval of the Co-Owners owning at least fifty-one per cent (51%) of the Units and at least fifty-one per cent (51%) of the total interest in the Common Elements and the record holders of first mortgages affecting at least fifty-one per cent (51%) of the total interest in the Common Elements”Master Deed, Article XXVI, Amendment of Master Deed, deed p. 15 (PDF page 19)

“No "For Sale" signs or the like shall be permitted on any Common Element or in any Unit so as to be visible from any Common Element or public or private street or area.”Master Deed, Article XIII, deed p. 8 (PDF page 12)

Will your guests be treated like guests?

Favorable

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.

Tenants and guests get every amenity (pool, lazy river, grilling area, laundry) on the same footing as owners, but one parking space per unit with a front-office pass, no pets for guests, and amenity hours tied to an undefined front desk keep it from 5.

Amenities for your guestsSame as program guests

Wristbands & parking passesNo wristbands mentioned. Parking: only one vehicle per unit in the complex lot; every vehicle must always display a complex parking pass from the front office; RVs or vehicles with trailers needing more than one space are not allowed; non-compliant vehicles towed at owner's expense. Cost of passes unstated. Deed Exhibit A grants a parking easement for up to 83 spaces.

Check-inunstated who handles check-in; the rules reference 'check-in and/or upon arrival at the complex front desk' for service-animal documentation and a front office that issues parking passes, but whether the front desk checks in off-program guests is unstated

TrashAll trash must be bagged and placed in receptacles in designated areas; bagged trash may not be left in any common area; failure results in fines to the owner

ElevatorsThe rules list the elevator among the common areas and the budget carries a $5,000 elevator maintenance contract; number of elevators unstated; no service-elevator or move-in rules stated

What the documents say (8)

“Use of the swimming pool is restricted to Wave Rider Resort Owners and their guests and/or tenants. All posted pool rules shall be followed. THERE IS NO LIFEGUARD ON DUTY AT ANY TIME.”Rules and Regulations (Rev. 7/24/2020), SWIMMING POOL, p. 4

“Pool hours will change [vary] in the peak season to reflect the hours of operation of the front desk. The pool gates shall be locked when the pool is closed.”Rules and Regulations (Rev. 7/24/2020), SWIMMING POOL, p. 4

“Use of the Guest Laundry Room is restricted to the use of Wave Rider Resort owners and their guests and/or tenants only. Guest Laundry Room hours of operation are posted and will change/or vary to reflect the hours of operation of the front desk. The laundry room will remain locked outside of posted hours of operation.”Rules and Regulations (Rev. 7/24/2020), GUEST LAUNDRY ROOM, p. 3

“Only one vehicle per unit is allowed in the complex parking lot. All vehicles in the complex parking lot must always display a comp lex parking pass from the front office. Any vehicles that require more than one (1) parking space (such as a RV or a vehicle with a trailer) are not allowed. Noncompliance will result in the vehicle being towed at the owner's expense.”Rules and Regulations (Rev. 7/24/2020), VECHICLES, p. 5

“GUEST AND/OR TENANTS ARE PROHIBITED FROM HAVING PETS IN THE UNITS OR ON COMPLEX PROPERTY AT ANY TIME.”Rules and Regulations (Rev. 7/24/2020), DECKS. PATIOS. BALCONIES AND PORCHES (pets paragraph), p. 3

“Service animals brought on property by tenants and/or guests must provide the proper documentation at check-in and/or upon arrival at the complex front desk.”Rules and Regulations (Rev. 7/24/2020), p. 3

“Grilling is permitted only in the designated area located in the complex common area.”Rules and Regulations (Rev. 7/24/2020), GRILLS AND OUTDOOR COOKING, p. 3

“Place bagged trash in receptacles located in designated areas of the complex and/or throughout the complex. Failure to comply will result in fines to the owner.”Rules and Regulations (Rev. 7/24/2020), GARBAGE, p. 2

How much work lands on you?

Favorable

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 local-contact, response-time, registration or lock rules exist, but owners wear repeatable fines for any guest violation, must police one-car parking, and face strict contractor licensing/insurance and a summer remodeling blackout.

Locks & keysThe Master Deed lets the Association require each co-owner to deposit a unit key under the Association's control for emergency entry; no lock-type or key-handling rules for guests stated

FinesAny rule violation results in a fine levied as a special assessment against the unit owner, repeatable until corrected after Board notice; litter fine up to $200 per violation; owners are responsible for the actions of their guests and tenants; pet-waste and pet-noise violations can bring fines and removal of the pet; no fine schedule beyond the $200 litter figure stated

Contractors & vendorsAll non-owners working in the complex, whether hired by the Association or an owner, must be licensed to do business in the City of Myrtle Beach, obtain city permits, carry $300,000 liability insurance and list Wave Rider Homeowners Association as additional insured. Remodeling (except emergency repairs) only Monday-Friday 8am-5pm, and not during June, July, August or the Easter, Labor Day or Bike event weeks without Board written consent. Structural changes, exterior changes, balcony enclosures, awnings and storm panels need Association written consent.

AlsoOwner must keep unit interior and exterior neat, clean and sanitary; balcony furniture must be white; window treatments must have white backing; nothing hung from balconies; no storage on balconies; owner maintains HVAC, water heater, balcony floor/interior walls, window glass and interior surfaces. No open alcohol containers outside the unit; no house parties; fireworks prohibited; solicitation prohibited. Owners may not keep or do anything in the unit or common elements that raises the Regime's insurance rate, and are liable for any fire-insurance rate increase caused by use or misuse of their unit (Master Deed Art. XV, XXVII(B)).

What the documents say (9)

“Owners will ensure that guests are familiar with all rules listed. Owners are responsible for the actions of their guests and/or tenants.”Rules and Regulations (Rev. 7/24/2020), RULES FOR GUEST, p. 1

“Any violation of these rules and regulations will result in a fine that will be levied as a special assessment to the owner of the unit in addition to all other legal remedies as dictated by the Master Deed, the By-Laws of the Homeowners Association, The Municipal, State and Federal Laws. The fine can be assessed repeatedly until the owner in violation corrects the infraction, once notified by the Board of Directors .”Rules and Regulations (Rev. 7/24/2020), VIOLATIONS, p. 5

“The Board of Directors may impose a fine of up to $200.00 for any violation.”Rules and Regulations (Rev. 7/24/2020), LITTER, p. 3

“All non-owners working in the complex, whether hired by the Association or an individual owner, must be licensed to do business in the city of Myrtle Beach in their profession and obtain permits as required by the city. All workers performing work within the complex should be insured for liability of $300,000.00 and have the Wave Rider Homeowners Association listed as an additional insured.”Rules and Regulations (Rev. 7/24/2020), CONTRACT MAINTENANCE, p. 2

“All remodeling work (except for emergency repairs) should be completed during normal business hours, Monday through Friday, 8am-Spm. No remodeling should be completed during the months of June, July or August or the holiday weeks of Easter, Labor Day, or Bike event week without the written consent of the Board of Directors.”Rules and Regulations (Rev. 7/24/2020), REMODELING, p. 4

“to facilitate entry in the event of any such emergency, the Co-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 XVI, Right of Entry into Units in Emergencies, deed p. 9 (PDF page 13)

“NO HOUSE PARTIES.”Rules and Regulations (Rev. 7/24/2020), ANNOYANCES, p. 1

“The Co-Owner or Co-Owners of each Unit shall be liable for the expense of any maintenance, repair or replacement rendered necessary by such Co-Owner’s act, neglect or carelessness, or by that of any member of such Co-Owner’s family, or such Co- Owner’s or their guests, employees, agents or lessees, but only to the extent that such expense is not met by the proceeds of insurance carried by Association.”Master Deed, Article XXVII(B), Remedies in Event of Default, deed p. 15 (PDF page 19)

“No Co-Owner of any Unit shall permit or suffer any thing to be done or kept in his Unit, or on the Common Elements, which will increase the rate of insurance on the Regime”Master Deed, Article XV, deed p. 8 (PDF page 12)

Is the money healthy?

Typical

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.

Dues include electricity, water, internet and security and no special assessments are mentioned, but reserves are only 9.2% of a dated 2023 budget, bad debt is budgeted at $10,000, and current insurance deductibles and reserve balance are unstated.

2023 budget$415,226

Reserves9% of budget

Special assessmentsNone in the documents

Insurance1996 By-Laws require full replacement cost hazard coverage on all Apartments and Common Elements, a deductible of no more than $1,000 borne by the Association as a common expense, and $1,000,000 single-limit liability; carriers must be SC-admitted and Best's rated. These 1996 terms are almost certainly superseded by current policies; current carrier, deductibles and any wind/hail or named-storm deductible are unstated. Owners are responsible for contents, improvements and in-unit liability coverage, and must give the Board a copy of any hazard policy they buy on their unit within 30 days.

Floodunstated (the 1996 By-Laws heading 'Hazard and Flood Policy Provisions' is the only flood reference; no flood policy or premium shown)

DelinquencyAssessments are payable in installments set by the Board, initially monthly unless a Board majority changes it (By-Laws 7(c), 11(b)); the monthly dues figures above assume that schedule. Assessment in default if unpaid by due date; Board may accelerate the whole annual assessment on 10 days' notice; after 20 days past due the Association may enforce by lien and foreclosure; delinquent amounts bear interest at the lesser of 18% per annum or the legal maximum; owner personally liable for interest, collection costs and attorney's fees whether or not suit is brought; in a foreclosure the Association may collect rent from the owner at comparable Myrtle Beach rates and have a receiver appointed; a buyer in a voluntary sale is jointly and severally liable with the seller for unpaid assessments and sale proceeds go first to delinquent assessments; a foreclosure/deed-in-lieu purchaser is not liable for pre-acquisition delinquencies (absorbed by all owners). In any default proceeding the Association, if successful, recovers its costs and reasonable attorney's fees as a lien on the unit, and the owner is never entitled to attorney's fees (Master Deed Art. XXVII(C)). The 2023 budget carries a $10,000 Bad Debt Expense line (2.4% of budget).

What the documents say (15)

“4000 - Regular Assessments 415,226.00 Total Income 415,226.00”Wave Rider Resort HOA 2023 Budget Summary Report (only budget on file; dated - 2023), Income, p. 1

“7000 - Reserves For Capt. Improvement 38,000.00 Total Other Expenses 38,000.00 Total Operating Expense 415,226.00 Total Association Net Income / (Loss) 0.00”Wave Rider Resort HOA 2023 Budget Summary Report (2023, dated), Other Expenses, p. 2

“6150 - Insurance Expense 44,100.00”Wave Rider Resort HOA 2023 Budget Summary Report (2023, dated), Administrative, p. 1

“6125 - Bad Debt Expense 10,000.00”Wave Rider Resort HOA 2023 Budget Summary Report (2023, dated), Administrative, p. 1

“6510 - Internet Access 9,400.00 6555 - Electricity 55,000.00 6560 - Telephone 2,810.00 6565 - Water & Sewer 45,000.00 6570 - Fuel 11,000.00 Total Utilities 123,210.00”Wave Rider Resort HOA 2023 Budget Summary Report (2023, dated), Utilities, p. 1

“All assessments levied against the co-owners of Apartments and said Apartments shall, unless specifically otherwise provided for in these By-Laws, be in the same proportion to the total assessment made against all co-owners of Apartments and their Apartments as the undivided interest in the Common Elements appurtenant to each Apartment bears to the total undivided interest in the Regime.”Master Deed Exhibit D, By-Laws, Section 11(a), Assessments, deed p. 42 (PDF page 46); per-unit dues above are this percentage times the 2023 Regular Assessments figure, using the Phase I column of Exhibit C because whether Phases II/III were ever submitted is unstated

“nothing herein contained shall be construed as restricting the right of the Board of Directors to at any time in their sole discretion levy an additional assessment in the event that the budget originally adopted shall appear to be insufficient to pay costs and expenses of operation and management, or in the event of emergencies.”Master Deed Exhibit D, By-Laws, Section 7(b), Fiscal Management, deed p. 36 (PDF page 40)

“When in default, the delinquent assessment or delinquent installment thereof due to Association shall bear interest at a rate equal to the lesser of (a) eighteen (18%) per cent per annum or (b) the maximum rate permitted by applicable law”Master Deed Exhibit D, By-Laws, Section 11(g), deed p. 44 (PDF page 48)

“In any voluntary conveyance of an Apartment (other than a deed in lieu of foreclosure as set forth above), the Grantee shall be jointly and severally liable with the Grantor for all unpaid assessments against Grantor made prior to the time of such voluntary conveyance”Master Deed Exhibit D, By-Laws, Section 11(l), deed p. 47 (PDF page 51)

“The hazard insurance obtained by the Association may provide that an amount not to exceed one thousand dollars ($1,000.00) shall be deductible from any indemnity payable on account of a single loss, put any such deductible portion shall be borne by the Association as a common expense regardless of the number of co-owners or Apartments directly affected by the loss.”Master Deed Exhibit D, By-Laws, Section 10, Insurance, 1.A, deed p. 38 (PDF page 42)

“The Board of Directors of Association, in establishing said annual budget for operation, management and maintenance of the project shall include therein a sum to be collected and maintained as reserve fund for replacement of Common Elements”Master Deed Exhibit D, By-Laws, Section 11(d), deed p. 43 (PDF page 47)

“An audit of the accounts of the Association shall be made annually and a copy of the report shall be furnished to each member not later than April 1st of the year following the year for which the report is made.”Master Deed Exhibit D, By-Laws, Section 7(e), deed p. 36 (PDF page 40)

“the Developer shall not be obligated to contribute toward the payment of any operating reserves or reserves for replacement so long as it is the owner of any unit in the Regime.”Master Deed Exhibit D, By-Laws, Section 11(i), deed p. 45 (PDF page 49)

“In any proceeding arising because of any such alleged default by the Co-owner of any Unit, the Association, if successful, shall be entitled to recover against the Unit and have a lien for the costs of the Proceedings, and such reasonable attorney’s fees as may be determined by the Court, but in no event shall the Co-owner of any Unit be entitled to such attorney’s fees.”Master Deed, Article XXVII(C), Remedies in Event of Default, deed p. 16 (PDF page 20)

“The assessments will initially be on a monthly basis unless changed by a vote of the majority of the Board of Directors.”Master Deed Exhibit D, By-Laws, Section 7(c), Fiscal Management, deed p. 36 (PDF page 40)

Who's really in charge?

Favorable

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.

Owner-elected five-member board with one vote per unit, developer board control expired in 2016 and ordinary 51% amendment rules, tempered by two commercial units with unstated current use and an assignable developer commercial-usage right.

StructureOne association

Commercial unitYes, with its own deed rights

BoardFive directors (first board was two developer-named persons); elected by plurality at the annual meeting (first Saturday in November); staggered two-year terms (three seats then two); one vote per unit per director seat regardless of percentage interest, non-cumulative; directors must be members or representatives of corporate members; removal per SC corporate law; the Board may employ a director or contract with a director for management of the Regime.

Developer rightsDeveloper could name a majority of the Board while owning 5 or more units, with that power expiring by its own terms on December 31, 2016; developer representatives need not recuse on contracts with the developer; developer reserved rights to add Phases II and III until December 31, 2016, construction/sales easements, use of sales office and model units, a right to assign its 'commercial usage' of units, exemption from reserve contributions while it owns any unit, and the option to pay the operating shortfall instead of per-unit assessments. By-law amendments abridging developer board rights required developer consent. Whether the developer or its successor still owns any units today is unstated.

Commercial-unit rightsExhibit C creates two commercial units (Commercial Unit #1 at 3.85% and Commercial Unit #2 at 1.50% of Phase I interests). The deed grants no monopoly over rentals, front desk or guest services to any party; what the commercial units are used for today and who owns them is unstated. The rules' front office / front desk functions (parking passes, pool and laundry hours, service-animal check-in) are not tied in the documents to any operator.

VotesMembership meetings: quorum 51% of apartments; 51% of apartments represented at a quorum meeting binds the members; one vote per apartment; co-owned or entity-owned units must file a voting certificate or their vote does not count; proxies allowed. Special meetings must be called on written request of owners of a majority of apartments.

Changing the deedMaster Deed: 51% of Units plus 51% of common-element interest plus first mortgagees holding 51% of the interest (Art. XXVI); percentage interests cannot change without all owners (Art. VI); termination, changing pro rata shares, or selling common elements needs all first mortgagees and all non-developer owners (Art. XI). By-Laws: proposed by Board majority or owners of a majority of value, adopted by owners of at least 51% of apartments at a joint meeting (By-Laws 9). Common-element alterations need Board approval plus 51% of common-element interest (Art. XIX). Rules: Board alone (By-Laws 4(j)(iv)).

Disputes or lawsuitsunstated (no lawsuit, minutes or dispute records in the set)

What the documents say (9)

“So long as the Developer is the owner of five (5) or more Units in the Regime, the said Developer shall have the right to designate and select a majority of the persons who shall serve as members of each Board of Directors of the Association.”Master Deed, Article XXIX, deed p. 17 (PDF page 21)

“The above- described power in the Developer to designate directors shall terminate on December 31, 2016.”Master Deed, Article XXIX, deed p. 17 (PDF page 21)

“The first Board of Directors of the Association, shall consist of two (2) persons. Each succeeding Board of Directors shall consist of five (5) persons.”Master Deed Exhibit D, By-Laws, Section 4(a), deed p. 29 (PDF page 33)

“In the election of directors, there shall be appurtenant to each Apartment as many votes for directors as there are directors to be elected (regardless of the percentage interest in common elements appurtenant to such Apartment); provided, however, that no member or co-owner of any Apartment may cast more than one vote for any person nominated as director, it being the intent hereof that voting for directors shall be non-cumulative.”Master Deed Exhibit D, By-Laws, Section 4(b)(v), deed p. 31 (PDF page 35)

“so long as the Developer shall retain any interest in the Regime, it may utilize a Unit or Units of its choice owned by Developer from time to time, for a sales office, model, or other usage for the purpose of selling Units or any other purposes as Developer in its sole discretion may determine in said Regime. Developer may assign this commercial usage right to such other persons or entities as it may choose.”Master Deed, Article XIII, deed p. 7 (PDF page 11)

“Commercial Unit #1 3.85 3.04 2.04 100,000.00”Master Deed, Exhibit C, Schedule of Percentage Interests, deed p. 23 (PDF page 27)

“any agreement for professional management of the Regime, or any other contract providing for services of the Developer, may not exceed three years, and must be with a property manager properly licensed by the State of South Carolina as set forth in $.C. Code Ann. Sections 40-57-10 et seq. (1995 Supp.). Any such agreement must provide for termination by either party without cause and without payment of a termination fee on ninety (90) days or less written notice;”Master Deed Exhibit D, By-Laws, Section 4(j)(v), deed p. 33 (PDF page 37)

“In order for such amendment or amendments to become effective, the same must be approved by an affirmative vote of the members owning not less than fifty-one per cent (51%) of the total number of Apartments in the Regime (subject to any applicable laws requiring a greater majority).”Master Deed Exhibit D, By-Laws, Section 9(c), Amendments to By-Laws, deed p. 37 (PDF page 41)

“The quorum at members’ meetings shall consist of persons entitled to cast a majority (fifty-one per cent (51%) of the number of Apartments) of the votes of the entire membership.”Master Deed Exhibit D, By-Laws, Section 2(b), deed p. 27 (PDF page 31)

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 expressly allows use by 'tenants, lessees, licensees' with no minimum stay, no on-site rental program and no requirement to use any manager, so an owner can self-manage or use any off-site manager (Master Deed, Art. XIII and Art. IX)
No rental registration, guest disclaimer, advertising or resort-name rules appear anywhere; the only advertising limit is a ban on exterior For Rent/For Sale signs (Rules and Regulations Rev. 7/24/2020, p. 4)
Tenants and guests get the same amenities as owners: the pool and guest laundry room are expressly open to 'Owners and their guests and/or tenants', and the grilling area and lazy river carry no owner-only restriction (Rules and Regulations, SWIMMING POOL p. 4 and GUEST LAUNDRY ROOM p. 3; Master Deed Art. IX)
Developer control of the board expired by its own terms on December 31, 2016; the board is five owner-elected directors with one vote per unit, non-cumulative, on staggered two-year terms (Master Deed Art. XXIX; By-Laws Sec. 4)
Dues cover electricity, water and sewer, internet, fuel, telephone, pest control, security and pool operation, which is a strong inclusion set for a short-term rental unit (2023 Budget, Utilities and Pool Maintenance, p. 1)
Management contracts are capped at three years and must be terminable by either party without cause or fee on 90 days' notice, so the owners can change managers (By-Laws Sec. 4(j)(v))
Ordinary amendment thresholds: 51% of units plus 51% of interest plus 51% of first mortgagees for the Master Deed, and 51% of apartments for the By-Laws; no supermajority lock-in (Master Deed Art. XXVI; By-Laws Sec. 9(c))
The association must adopt a budget including reserves, deliver it to owners 60 days before the year starts, and have an annual audit furnished to each member by April 1 (By-Laws Sec. 7(b), 7(e), 11(d))
Building hazard insurance must cover all apartments and common elements at full replacement cost with the deductible carried as a common expense (By-Laws Sec. 10.1.A)
No special assessments are mentioned anywhere in the set and the 2023 budget balances to zero net (2023 Budget, p. 2)

Watch-outs

The only budget on file is the 2023 one; there is no newer budget, year-end financial statement, balance sheet, reserve balance or reserve study, so current dues and financial health cannot be confirmed (2023 Budget, pp. 1-2)
Reserve contribution is $38,000, about 9.2% of the $415,226 budget, below the 15% benchmark for a 1996 oceanfront building with a pool, lazy river and elevator (2023 Budget, Other Expenses, p. 2)
The budget carries a $10,000 Bad Debt Expense line (2.4%), suggesting a meaningful level of delinquent owners (2023 Budget, Administrative, p. 1)
Every rule violation by a guest or tenant becomes a fine levied against the owner as a special assessment, repeatable until corrected; litter fines up to $200 per violation (Rules and Regulations, VIOLATIONS p. 5 and LITTER p. 3)
Only one vehicle per unit is allowed in the lot, every vehicle must display a parking pass from the front office, and RVs/trailers are towed; a two-car rental party has no stated option (Rules and Regulations, VECHICLES p. 5)
Guests and tenants may not bring pets at any time (service animals need documentation at check-in), which narrows the rental market (Rules and Regulations, p. 3)
Pool and guest-laundry hours track the front desk's hours and both are locked outside those hours; who runs the front desk and whether it serves off-program guests is unstated (Rules and Regulations, SWIMMING POOL p. 4, GUEST LAUNDRY ROOM p. 3)
The rules bar 'commercial business activity, including but not limited to a rooming house, boarding house' in any unit without Board written consent; the documents do not define short-term rentals as either permitted or commercial, leaving room for a future board to read this against STR hosts (Rules and Regulations, BUSINESS ACTIVITY p. 2)
Two commercial units exist in the regime (3.85% and 1.50% interests) and the developer reserved an assignable 'commercial usage right'; what those units do today and who holds them is unstated (Master Deed Art. XIII and Exhibit C)
Insurance terms in the documents are 1996 By-Law requirements (max $1,000 deductible paid by the association); current wind/named-storm and flood deductibles, carrier and coverage are unstated, and the $44,100 premium is 10.6% of a dated budget (By-Laws Sec. 10; 2023 Budget p. 1)
The Board may levy additional assessments at any time in its sole discretion if the budget proves insufficient or in emergencies, with no owner vote (By-Laws Sec. 7(b) and 11(c))
Delinquency terms are harsh: 18% interest, acceleration of the full year, foreclosure, receiver and rent capture; a buyer in a voluntary sale is jointly liable for the seller's unpaid assessments, so get an estoppel letter (By-Laws Sec. 11(g), 11(j), 11(l))
Any contractor an owner hires must be licensed in the City of Myrtle Beach, carry $300,000 liability insurance naming the HOA as additional insured, and remodeling is barred June-August and on Easter, Labor Day and Bike event weeks without Board consent (Rules and Regulations, CONTRACT MAINTENANCE p. 2 and REMODELING p. 4)
The Association may require every owner to deposit a unit key under its control (Master Deed Art. XVI)
Whether the $55,000 electricity line means in-unit power is master-metered and included in dues is unstated; confirm before underwriting utility costs (2023 Budget, Utilities p. 1)
The by-laws on file are the original 1996 Exhibit D with a page scramble that drops sections 5(b)-6(d); no amendments to the Master Deed or By-Laws and no current standalone by-laws are in the set (Master Deed Exhibit D, PDF pages 38-39)
Balcony furniture must be white, balconies cannot be carpeted or tiled, and window coverings need white backing, so furnishing choices are constrained (Rules and Regulations, CONFORMITY REQUIREMENTS p. 2; Master Deed Art. XIII)

04 The money

What you pay, and where it goes.

An HOA fee is a share of a budget. The budget tells you whether the fee is buying upkeep or catching up on it.

Regular assessments, 2023

Unit type	Per month	Per year
1.30% interest (standard unit; 65 of 80 units on the Phase I schedule) - computed 1.30% x $415,226	$450	$5,398
0.65% interest (11 smaller units: 140-144, 238-244, 338-344 on the Phase I schedule) - computed 0.65% x $415,226	$225	$2,699
1.50% interest (units 156, 301 and Commercial Unit #2 on the Phase I schedule) - computed 1.50% x $415,226	$519	$6,228
3.85% interest (Commercial Unit #1 on the Phase I schedule) - computed 3.85% x $415,226	$1,332	$15,986

What the dues cover

Electricity ($55,000 budgeted at association level; whether in-unit electric is master-metered is unstated)Water & sewer ($45,000)Internet access ($9,400)Fuel ($11,000)Telephone ($2,810)Pest control contract ($2,900)Security service contract ($18,910)Pool contract, supplies and repairs ($52,280)Elevator and fire system maintenance contractsBuilding hazard and liability insurance ($44,100)Landscaping, facility maintenance, management, accountingCable TV: unstated (not a budget line)

Where the budget goes

Electricity$55,000 · 13%

Water & Sewer$45,000 · 11%

Facility Maintenance Contract$44,750 · 11%

Insurance Expense$44,100 · 11%

General Maint. & Material$40,000 · 10%

Reserves For Capt. Improvement$38,000 · 9%

Pool Supplies$25,000 · 6%

Security Service Contract$18,910 · 5%

The figures, in the documents' words (15)

“4000 - Regular Assessments 415,226.00 Total Income 415,226.00”Wave Rider Resort HOA 2023 Budget Summary Report (only budget on file; dated - 2023), Income, p. 1

“7000 - Reserves For Capt. Improvement 38,000.00 Total Other Expenses 38,000.00 Total Operating Expense 415,226.00 Total Association Net Income / (Loss) 0.00”Wave Rider Resort HOA 2023 Budget Summary Report (2023, dated), Other Expenses, p. 2

“6150 - Insurance Expense 44,100.00”Wave Rider Resort HOA 2023 Budget Summary Report (2023, dated), Administrative, p. 1

“6125 - Bad Debt Expense 10,000.00”Wave Rider Resort HOA 2023 Budget Summary Report (2023, dated), Administrative, p. 1

“6510 - Internet Access 9,400.00 6555 - Electricity 55,000.00 6560 - Telephone 2,810.00 6565 - Water & Sewer 45,000.00 6570 - Fuel 11,000.00 Total Utilities 123,210.00”Wave Rider Resort HOA 2023 Budget Summary Report (2023, dated), Utilities, p. 1

“All assessments levied against the co-owners of Apartments and said Apartments shall, unless specifically otherwise provided for in these By-Laws, be in the same proportion to the total assessment made against all co-owners of Apartments and their Apartments as the undivided interest in the Common Elements appurtenant to each Apartment bears to the total undivided interest in the Regime.”Master Deed Exhibit D, By-Laws, Section 11(a), Assessments, deed p. 42 (PDF page 46); per-unit dues above are this percentage times the 2023 Regular Assessments figure, using the Phase I column of Exhibit C because whether Phases II/III were ever submitted is unstated

“nothing herein contained shall be construed as restricting the right of the Board of Directors to at any time in their sole discretion levy an additional assessment in the event that the budget originally adopted shall appear to be insufficient to pay costs and expenses of operation and management, or in the event of emergencies.”Master Deed Exhibit D, By-Laws, Section 7(b), Fiscal Management, deed p. 36 (PDF page 40)

“When in default, the delinquent assessment or delinquent installment thereof due to Association shall bear interest at a rate equal to the lesser of (a) eighteen (18%) per cent per annum or (b) the maximum rate permitted by applicable law”Master Deed Exhibit D, By-Laws, Section 11(g), deed p. 44 (PDF page 48)

“In any voluntary conveyance of an Apartment (other than a deed in lieu of foreclosure as set forth above), the Grantee shall be jointly and severally liable with the Grantor for all unpaid assessments against Grantor made prior to the time of such voluntary conveyance”Master Deed Exhibit D, By-Laws, Section 11(l), deed p. 47 (PDF page 51)

“The hazard insurance obtained by the Association may provide that an amount not to exceed one thousand dollars ($1,000.00) shall be deductible from any indemnity payable on account of a single loss, put any such deductible portion shall be borne by the Association as a common expense regardless of the number of co-owners or Apartments directly affected by the loss.”Master Deed Exhibit D, By-Laws, Section 10, Insurance, 1.A, deed p. 38 (PDF page 42)

“The Board of Directors of Association, in establishing said annual budget for operation, management and maintenance of the project shall include therein a sum to be collected and maintained as reserve fund for replacement of Common Elements”Master Deed Exhibit D, By-Laws, Section 11(d), deed p. 43 (PDF page 47)

“An audit of the accounts of the Association shall be made annually and a copy of the report shall be furnished to each member not later than April 1st of the year following the year for which the report is made.”Master Deed Exhibit D, By-Laws, Section 7(e), deed p. 36 (PDF page 40)

“the Developer shall not be obligated to contribute toward the payment of any operating reserves or reserves for replacement so long as it is the owner of any unit in the Regime.”Master Deed Exhibit D, By-Laws, Section 11(i), deed p. 45 (PDF page 49)

“In any proceeding arising because of any such alleged default by the Co-owner of any Unit, the Association, if successful, shall be entitled to recover against the Unit and have a lien for the costs of the Proceedings, and such reasonable attorney’s fees as may be determined by the Court, but in no event shall the Co-owner of any Unit be entitled to such attorney’s fees.”Master Deed, Article XXVII(C), Remedies in Event of Default, deed p. 16 (PDF page 20)

“The assessments will initially be on a monthly basis unless changed by a vote of the majority of the Board of Directors.”Master Deed Exhibit D, By-Laws, Section 7(c), Fiscal Management, deed p. 36 (PDF page 40)

Wave Rider 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, 2023

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.

Wave Rider 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, 2023

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.