Lexington County, South Carolina Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Lexington County, South Carolina?

Short-term rentals operated through booking platforms like Airbnb and VRBO have rapidly gained popularity in Lexington County, South Carolina over the past decade. However, until recently, these rentals were largely unregulated in unincorporated areas of the county. In response, Lexington County Council spent nearly a year debating and finalizing new regulations on the industry, which were approved in April 2024 and will take effect on January 1, 2025.

Starting a Short-Term Rental Business in Lexington County

Under the new rules, short-term rental owners in Lexington County will be required to obtain a county permit that must be renewed annually for a yet-to-be-determined fee. The permit must be included in any advertisements for the rental property. A new permit will also be required for any changes in ownership, management, or parameters of a previously approved rental.

Both owner-occupied short-term rentals (where the owner lives on-site) and non-owner-occupied rentals are allowed in all zoning districts, provided they meet the other requirements. This is a change from initial drafts of the regulations that would have restricted non-owner-occupied rentals to only certain zoning districts.

Short-term rental owners must designate a local representative, such as a property management company, who can be on-site within 45 minutes to address any issues that arise. The owner must also create a plan to address potential nuisances like noise and lighting complaints.

Other key regulations include:

• Renters must be at least 25 years old
• Minimum stay of 2 nights
• Maximum occupancy of 2 people per bedroom (excluding children under 5)
• At least 1 parking spot required, street parking must not block traffic or neighbors
• On-site septic system must be inspected before permit is granted

Violations can result in permits being revoked, including permits for other properties owned by the same individual. After two violations in a 365-day period, the permit will be immediately revoked and may only be reissued with approval from the Board of Zoning Appeals.

The regulations were revised multiple times in response to public feedback. An initial draft received backlash from residents and business owners who argued the rules were too stringent and would harm tourism. The county responded by easing some, but not all, of the proposed restrictions before finalizing the ordinance.

The new rules bring Lexington County in line with many other cities and counties across South Carolina that have moved to regulate the booming short-term rental industry in recent years. Property owners interested in starting an Airbnb business should carefully review the full county ordinance to ensure compliance with all requirements.

Short-Term Rental Licensing Requirements in Lexington County

To legally operate a short-term rental in unincorporated areas of Lexington County, property owners must obtain a Short-Term Rental Zoning Permit from the county's Community Development Department. The permit application requires the following:

1. Property owner name and contact information
2. Local representative name and contact information (if owner does not live on-site)
3. Physical address of the short-term rental property
4. Zoning district of the property
5. Number of bedrooms to be used for short-term rental
6. Maximum occupancy (2 people per bedroom, excluding children under 5)
7. Parking plan showing number of on-site parking spaces
8. Septic system inspection report from SCDHEC (if applicable)
9. Plan to address potential nuisances like noise and lighting
10. Permit fee (amount to be determined by County Council)

The Short-Term Rental Zoning Permit must be renewed annually. A new permit is also required anytime there is a change in ownership, management, or parameters of the rental.

Permit applications can be submitted online through the county's CitizenServe portal or in-person at the Community Development Department office. The county has not yet announced the permit fees or typical processing times.

Lexington County will begin enforcing the new STR regulations on January 1, 2025. After that date, advertising or operating a short-term rental without a valid permit will be considered a violation subject to fines and penalties.

For the first offense, the fine is $500 or 30 days in jail. Subsequent offenses within a year carry a fine of $1000 and/or 30 days in jail. In addition, the rental property's permit may be revoked after two violations in a 365-day period. Revoked permits may only be reissued with approval from the Board of Zoning Appeals.

It's important for Lexington County property owners to carefully review the full ordinance and follow all requirements to avoid violations. With proper permitting and adherence to the new rules, short-term rentals can continue to operate successfully while preserving the character of residential neighborhoods.

Required Documents for Lexington County Short-Term Rentals

To obtain a Short-Term Rental Zoning Permit in Lexington County, property owners must submit the following documents with their application:

1. Proof of Ownership: A copy of the property deed or tax bill showing the applicant owns the property. This verifies the applicant has the legal right to use the property as a short-term rental.
2. Septic System Inspection Report: For properties not connected to a public sewer system, an inspection report from the South Carolina Department of Health and Environmental Control (SCDHEC) certifying the septic system is functioning properly and sized appropriately for the rental's maximum occupancy. This helps protect the environment and water quality, especially near Lake Murray. Inspections can be scheduled through SCDHEC's website.
3. Parking Plan: A site plan or aerial photo showing the location and number of on-site parking spaces dedicated to the short-term rental. At least one space is required. This allows the county to verify the rental meets the parking requirements and will not cause traffic issues for neighbors.
4. Local Contact Designation Form: The name and contact information for either the property owner or a designated local representative who can quickly respond to any issues with the rental. The contact must be able to be on-site within 45 minutes if notified of a problem. This ensures a responsible party is available to address complaints.
5. Nuisance Response Plan: A written plan detailing how the owner or local representative will address potential nuisance issues like noise complaints, illegal parking, trash, etc. This plan is meant to mitigate any negative impacts the rental may have on neighbors or the surrounding community.
6. Permit Fee: A one-time permit fee must be submitted with the application. As of June 2024, the fee amount has not yet been set by County Council. The fee helps cover the cost of administering the short-term rental program.

These required documents, along with a completed Short-Term Rental Zoning Permit application, must be submitted to the Lexington County Community Development Department either online through the county's CitizenServe portal or in-person at their office. The county has not yet announced the typical processing time for permit applications.

Failure to obtain a permit before advertising or operating a short-term rental in unincorporated Lexington County will be considered a violation subject to fines and penalties starting January 1, 2025, when the new ordinance takes effect. Unpermitted rentals will face a $500 fine and/or 30 days in jail for the first offense, with higher fines and penalties for subsequent violations.

By carefully reviewing the requirements and submitting a complete permit application with all required documents, short-term rental owners in Lexington County can ensure they are in full compliance with the new regulations set to begin in 2025. This will allow them to continue offering rental accommodations while maintaining the character and quality of life in the county's residential neighborhoods.

Lexington County Short-Term Rental Taxes

In addition to obtaining a zoning permit, short-term rental owners in Lexington County must collect and remit several state and local taxes. The taxes that apply to short-term rentals in the county include:

State Sales Tax on Accommodations (7%): Short-term rentals are subject to the statewide 7% sales tax on accommodations. This tax is collected from the guest and remitted to the South Carolina Department of Revenue. It applies to the gross proceeds derived from the rental of any accommodation, including vacation homes, condos, timeshares, hotels, motels, and campgrounds.

State-Administered Local Sales Tax (1-3%): Lexington County also levies a 1% local option sales tax and a 1% capital projects sales tax, both of which are collected in addition to the state sales tax. Some municipalities within the county, like Batesburg-Leesville and Cayce, charge an additional 1% sales tax. These local taxes are administered and collected by the state along with the 7% accommodations tax.

Local Accommodations Tax (3%): On top of the state-administered taxes, Lexington County charges a 3% local accommodations tax on the gross proceeds from short-term rentals. This tax is remitted directly to the county on a quarterly basis. The revenue supports tourism-related expenditures.

Local Hospitality Tax (2%): Some municipalities in Lexington County, including Lexington, Cayce, and West Columbia, also impose a 2% local hospitality tax on accommodations. If applicable based on the property's location, this tax must be remitted to the city or town.

So in total, short-term rentals in unincorporated Lexington County are subject to a 11% tax rate (7% state + 1% local option + 1% capital projects + 3% county accommodations tax). Those located within certain municipalities may have a tax rate of up to 14% when the additional municipal sales and hospitality taxes are included.

Short-term rental owners can deduct many of the expenses related to operating and maintaining the property to reduce their taxable income. Some common deductible expenses include:

1. Mortgage interest
2. Property taxes
3. Rental unit supplies like linens, toiletries, etc.
4. Cleaning and maintenance costs
5. Utility bills
6. Insurance premiums
7. Repairs
8. Advertising and marketing expenses
9. Property management fees
10. Depreciation of the property

It's important for short-term rental owners to carefully track all income and expenses throughout the year. Proper documentation is essential in case of an audit. Many owners choose to work with an experienced accountant to ensure they are complying with all tax requirements and maximizing their deductions.

By understanding the applicable taxes and taking advantage of available write-offs, short-term rental owners in Lexington County can run a profitable business while remaining in compliance with the new county regulations. The zoning permit requirements, coupled with occupancy limits and other restrictions, aim to strike a balance between maintaining the character of residential neighborhoods and supporting the growing vacation rental industry.

South Carolina Wide Short-Term Rental Rules

In addition to Lexington County's new ordinance regulating short-term rentals, property owners must also comply with several state-level laws and tax requirements.

The South Carolina General Assembly has considered multiple bills related to short-term rentals in recent years. Most notably, H.3253 was introduced in January 2023 and aimed to prohibit local governments from banning short-term rentals. However, the bill allows reasonable regulations to protect health and safety. As of August 2024, the bill has not been passed into law.

Another relevant bill is H.953, which was introduced in January 2024 and provides definitions for "lodging marketplaces" like Airbnb and VRBO. It also clarifies that short-term rentals are subject to state and local accommodations taxes collected by the Department of Revenue. This bill is still pending as well.

At the state level, short-term vacation rentals are currently subject to the 7% state sales tax on accommodations. Property owners can be exempt from collecting this tax only if they rent for less than 15 days per year or have fewer than six bedrooms in their primary residence.

The South Carolina Department of Revenue collects the statewide sales tax on accommodations directly from "lodging marketplaces" like Airbnb and VRBO. However, these companies do not always collect and remit the local accommodations taxes, leaving that responsibility to the property owner.

Short-term rental operators must also obtain a retail license from the Department of Revenue and potentially a local business license, depending on the requirements of their municipality or county. Failure to comply with licensing and tax requirements can result in fines and other penalties.

Property owners should be aware that operating a short-term rental may impact their property tax assessment. Renting a property for more than 14 days per year makes it ineligible for the 4% owner-occupied property tax assessment rate. Instead, the property will be assessed at the 6% rate used for commercial properties and second homes.

Overall, while there is no statewide ban or permit requirement for short-term rentals, South Carolina law does allow local governments to implement their own regulations. Property owners in Lexington County and across the state must carefully review both state and local requirements to ensure they are in full compliance when operating a short-term rental business.

Does Lexington County Strictly Enforce STR Rules?

Based on discussions among short-term rental hosts on forums like BiggerPockets and Reddit, Lexington County appears to be taking a fairly strict approach to enforcing its new STR regulations compared to some other areas of South Carolina. The county has outlined clear penalties for violations, including fines, permit revocation, and even jail time for repeat offenders.

One Lexington County host on BiggerPockets commented, "The county is not messing around with these new rules. I know several hosts who have already been warned or fined for things like not including their permit number in their listing or exceeding the occupancy limits. They seem to be actively monitoring listings and responding to neighbor complaints."

Another host on the Columbia, SC subreddit said, "I've heard Lexington County is really cracking down, especially around Lake Murray. I think they're worried about the impact on the lake environment. Several of my friends have decided to sell their lake houses or convert them to long-term rentals because they don't want to deal with the strict new requirements."

However, some hosts say they are continuing to operate without permits, willing to risk the penalties. "It's just not worth the hassle and expense of getting permitted for me," said one host on BiggerPockets. "I'm keeping my listing up and being as low-key as possible. Worst case, I'll eat the $500 fine if I get caught, but that's cheaper than jumping through all the hoops to get legal."

Overall, while Lexington County's STR regulations are not as restrictive as some other popular tourist destinations like Charleston, the county does appear to be taking enforcement seriously. The steep fines and threat of permit loss are deterring some hosts from operating illegally. But the lure of rental income means others are still willing to skirt the rules, even as the county ramps up its monitoring and enforcement efforts. Compared to other South Carolina counties, Lexington seems to be taking a harder line on reining in STRs, especially around the vulnerable Lake Murray area.

How to Start a Short-Term Rental Business in Lexington County

If you're interested in starting a short-term rental business in Lexington County, here are the key steps to follow:

1. Determine if your property is eligible: Review the county's zoning map to confirm your property is located in an area that allows short-term rentals. As of the new 2025 regulations, both owner-occupied and non-owner-occupied rentals are permitted in all zoning districts, as long as they meet the other requirements.
2. Obtain a business license: Register your short-term rental business with the county and obtain a business license. You'll need to provide information about your rental property and pay the applicable licensing fee.
3. Get a Short-Term Rental Zoning Permit: Apply for a Short-Term Rental Zoning Permit from the Lexington County Community Development Department. You'll need to submit documents like proof of ownership, a parking plan, the maximum occupancy, and a plan to address potential nuisances. The permit must be renewed annually.
4. Designate a local representative: If you don't live on-site, you must designate a local contact person, like a property manager, who can respond to issues at the property within 45 minutes. Provide their contact information to the county.
5. Arrange for a septic system inspection: If your property is not connected to a public sewer, you'll need an inspection report from SCDHEC certifying your septic system is functioning properly and sized for your rental's occupancy. Schedule this inspection before applying for your zoning permit.
6. Prepare the property for guests: Outfit your rental with furniture, linens, kitchenware, and amenities to make it comfortable and attractive for guests. Consider hiring a professional photographer to take high-quality photos for your online listing.
7. Create a detailed rental agreement: Develop a rental contract that clearly outlines your policies on things like minimum stay, maximum occupancy, pets, parking, noise, etc. Have a lawyer review it to ensure it complies with all relevant laws.
8. List your property online: Create a listing for your short-term rental on popular platforms like Airbnb and VRBO. Be sure to include the zoning permit number in your listing description. Set competitive nightly rates based on other comparable rentals in the area.
9. Implement a cleaning and maintenance plan: Hire a reputable cleaning service to thoroughly clean and sanitize your rental between guests. Perform regular maintenance to keep the property in top condition. Consider using a property management system to handle booking inquiries, guest communication, and cleaning coordination.
10. Comply with tax requirements: Short-term rentals in Lexington County are subject to state and local taxes, including the 7% state sales tax on accommodations and the 3% county accommodations tax. Register with the appropriate tax agencies and be sure to collect and remit the required taxes on your rental income.

Some tips for success:

1. Focus on providing an exceptional guest experience to earn positive reviews and repeat bookings. Small touches like a welcome basket or recommendations for local attractions can make a big impression.
2. Respond promptly to guest inquiries and maintain open communication throughout the booking process to build trust.
3. Use dynamic pricing tools to automatically adjust your nightly rates based on demand, seasonality, and local events. This can help maximize your revenue.
4. Regularly review and optimize your listing, including updating photos, amenities, and descriptions to attract more guests.
5. Consider investing in noise monitoring devices to ensure guests are respecting quiet hours and not disturbing neighbors.

By following these steps and prioritizing guest satisfaction, you can launch and grow a successful short-term rental business in Lexington County while complying with all the new regulations. Just be sure to stay up-to-date on any changes to the county's ordinances over time.

Who to Contact in Lexington County about Short-Term Rental Regulations and Zoning?

If you have questions about Lexington County's short-term rental regulations or need assistance with the permitting process, here are the key contacts and resources:

Lexington County Community Development Department

1. Phone: (803) 785-8121
2. Email: CDCustomerService@lex-co.com
3. Address: 212 South Lake Drive, Suite 401, Lexington, SC 29072
4. Website: https://lex-co.sc.gov/departments/community-development

The Community Development Department handles all aspects of short-term rental regulation in Lexington County, including zoning permits, inspections, and enforcement. You can reach out to them for application forms, fee schedules, and answers to any questions about the county's STR ordinance.

Lexington County Board of Zoning Appeals

1. Contact: Jessica Lybrand, Board Secretary
2. Phone: (803) 358-1532
3. Email: jlybrand@lex-co.com
4. Meeting Info: 3rd Tuesday of each month at 6:00pm, 2nd floor of County Administration Building

If your short-term rental permit is denied or revoked, you can appeal the decision to the Lexington County Board of Zoning Appeals. The board meets monthly to hear variance requests and appeals related to the zoning ordinance.

In addition to official county resources, short-term rental hosts in Lexington County may find support through these online communities:

1. Airbnb Community Center - Columbia Area Hosts: https://community.withairbnb.com/t5/Columbia/gh-p/columbia
2. VRBO Community Forum - South Carolina: https://community.vrbo.com/s/topic/0TO3m000000BNFtGAO/south-carolina
3. Columbia Area Short-Term Rental Alliance (CASTRA) Facebook Group: https://www.facebook.com/groups/columbiastralliance/
4. BiggerPockets Forums - South Carolina: https://www.biggerpockets.com/forums/773-south-carolina

These forums and social media groups allow local hosts to network, share experiences, and get advice from fellow short-term rental operators in the Lexington County and Columbia area. While the information shared is not official, it can be a helpful resource, especially for new hosts navigating the county's regulations for the first time.

As Lexington County's short-term rental ordinance is still relatively new, it's important for hosts to stay informed of any changes or updates to the rules. Regularly checking the county's website, signing up for email alerts, and connecting with other local hosts are good ways to ensure you remain in compliance. With proper planning and due diligence, short-term rentals can continue to thrive in Lexington County under the new regulatory framework.

What Do Airbnb Hosts in Lexington County on Reddit and Bigger Pockets Think about Local Regulations?

Lexington County's proposed short-term rental regulations have generated significant discussion among Airbnb and VRBO hosts on online forums like Reddit and BiggerPockets. Here's what some local hosts are saying:

On the Airbnb subreddit, a host who manages multiple properties around Lake Murray expressed concerns about the zoning restrictions:

"I have several lake houses that I rent out on Airbnb, and none of the owners live on-site. It sounds like under these new rules, I wouldn't be able to operate them as STRs anymore because they're in low-density residential areas. That's a huge blow to my business and will really hurt the vacation rental market in Lexington County."

Another Lexington County host on BiggerPockets questioned the need for the new regulations:

"I've been operating an Airbnb in Lexington for 3 years without any issues. I screen my guests, enforce quiet hours, and make sure they follow parking rules. I don't see why the county needs to get involved and make it harder for hosts like me who are already being responsible."

However, some hosts are more supportive of the county's efforts to regulate short-term rentals. In a thread on the Columbia, SC subreddit, a Lexington host said:

"I actually don't mind the idea of getting a permit and having some basic rules in place. It helps weed out the bad actors and ensures a level playing field. I just hope the fees are reasonable and the process isn't too complicated."

The age requirement for renters and minimum stay period seem to be sticking points for many hosts. On the Airbnb Community Center forum, a host in Lexington wrote:

"A big chunk of my bookings are for 1-2 night stays, especially during football weekends. Requiring a 3-night minimum will definitely hurt my business. And the 25+ age limit seems arbitrary - I've had plenty of responsible guests in their early 20s."

Overall, the reaction from Lexington County's short-term rental host community seems mixed. While some see the value in sensible regulations, many are concerned that the proposed rules are overly restrictive and will negatively impact the vacation rental market that has flourished in the area in recent years.

As the county considers feedback and finalizes the ordinance, local hosts are hoping officials will strike a balance that allows them to continue operating while addressing community concerns. The coming months will reveal what the future holds for short-term rentals in Lexington County.

Disclaimer: While we here at BNBCalc strive to keep all of our regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.