New Richland County STR Ordinance Reshapes Short-Term Rental Landscape in the County

Richland County has recently adopted a new ordinance that aims to regulate short-term rentals, including those listed across various booking platforms. The ordinance, passed by the County Council on April 9, 2024, draws inspiration from the City of Columbia's recent STR and longstanding Hilton Head Island ordinance.

Under the new rules, all short-term rentals in unincorporated Richland County must:

• Obtain a county business license
• Pay a 3% accommodations tax on rental revenue
• Provide at least two parking spaces
• Keep guest records for the past two years

The regulations apply to any property rented for 30 days or less. Owners already operating short-term rentals have a 120-day grace period after May 4, 2024, to apply for the required permits and licenses.

The ordinance's passage follows closely on the heels of the City of Columbia's own STR regulations, which took effect on May 4, 2024. The city's rules require STR operators to obtain permits, with a 120-day window for existing operators to apply. Permit fees range from $100 for owner-occupied units to $250 for vacant properties, with a non-refundable $50 application fee.

However, the regulations also restrict where short-term rentals can legally operate. They are only permitted in limited mixed-use and commercial zoning areas under the county's new land development code that took effect in March 2024. This effectively bans vacation rentals in residential single-family neighborhoods.

Short-term rental owners have pushed for the county to revisit these zoning restrictions, citing the economic benefits vacation rentals bring to the area through tourism. The county has indicated it may reevaluate the zoning rules based on data collected from the new licensing and permitting system.

As local governments grapple with the growing popularity of newly launched short-term rentals, these new ordinances in Richland County and the City of Columbia represent an effort to balance the interests of STR operators, local residents, and municipal authorities. While some adjustments may be necessary as the rules are implemented, they provide a framework for managing the STR market and its potential impacts on local communities.