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

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

Short-term rental regulations in South Carolina vary by city and county, with some areas having more stringent rules than others. It's important for property owners to understand the specific requirements in their location before starting a short-term rental business.

Starting a Short-Term Rental Business in South Carolina

To start a short-term rental business in South Carolina, property owners must first determine if their property is zoned for this type of use. Zoning ordinances outline allowable uses for each district, and short-term rentals may be permitted, conditionally permitted, or require a special exception depending on the location.

In Greenville County, for example, property owners can use the Geographic Information System (GIS) to search for their property and determine its zoning. If the property is unzoned, there are no use-based restrictions, but development must still comply with the Land Development Regulations.

Once zoning is confirmed, property owners must obtain necessary permits and licenses, which typically include a business license and may require a short-term rental permit or accessory use permit for home occupation.

Short-Term Rental Licensing Requirement in South Carolina

While there is currently no state-wide law governing short-term rentals in South Carolina, owners must still register for a retail license with the Department of Revenue to collect state taxes, unless they exclusively use a marketplace like Airbnb or VRBO.

To legally operate a short-term rental, property owners must obtain the necessary permits and licenses from their local city or county government. Requirements vary by location, but typically include:

• Short-term rental permit or accessory use permit for home occupation
• Business license
• Proof of property ownership or signed lease agreement
• Detailed floor plan of the rental property
• Parking plan showing designated guest spaces
• Proof of liability insurance coverage
• Signed affidavit of compliance with local regulations

In Greenville County, for example, all permit applications must be submitted through the county's online eTrakit system. The cost of the short-term rental permit is $40.00, payable by check to Greenville County. Applications and required documents should be submitted to:

1. Greenville County Permit Center
2. 301 University Ridge, Suite 4100
3. Greenville, SC 29601

The permit review and approval process in Greenville County typically takes around five days. Failure to obtain the necessary permits and licenses can result in fines, penalties, and legal consequences.

In the City of Columbia, all short-term rentals must have a Short-Term Rental Permit and Business License prior to allowing occupancy. The permit costs $100 per year for owner-occupied units and $250 per year for non-owner-occupied, plus a $50 annual application fee. Permits are effective from July 1st to June 30th and must be renewed by July 1st to avoid a $100 late fee.

On the Isle of Palms, short-term rental license fees are based on the gross rental income from the previous calendar year. The fee is $450 for the first $2,000 earned and $4.60 for each additional thousand. Licenses must be renewed by April 30th to avoid late fees.

To ensure compliance and avoid penalties, it is crucial for short-term rental operators to research the specific requirements in their city and county, submit complete applications with all necessary documentation, and pay the associated fees before welcoming guests. Consulting with local government offices, lawyers, or tax professionals can provide additional guidance.

Required Documents for South Carolina Short-Term Rentals

To legally operate a short-term rental in South Carolina, owners must obtain the proper permits and licenses from their local city or county government. While requirements vary by location, the following documents are commonly required when applying for a short-term rental permit:

1. Completed Short-Term Rental Application Form

This form, available from the local planning or code compliance department, requires basic information about the property owner and the rental property.

2. Proof of Ownership

A copy of the current deed must be provided showing the name(s) of all property owners to demonstrate legal ownership of the rental property.

3. Parking Plan

A detailed drawing of the property's parking layout must be submitted, showing and labeling all available parking spaces for guests.

4. Floor Plan (to scale)

A detailed floor plan for each level of the rental unit, including the attic, must be provided. The plan should label each room and indicate the number of beds. Sketches or blueprints drawn to scale are ideal.

5. Site Plan

The site plan must show the driveway, number and dimensions of parking spaces, water well, septic tank, drainfield area/beds, and any accessory structures or screening.

6. Operation Plan

This document outlines the day-to-day operations of the short-term rental, including the number of employees, operation details, and best management practices.

7. Fire Safety Acknowledgement Form

In some areas, like the Isle of Palms, a Fire Safety Acknowledgement Form must be submitted as part of the application process.

8. Accommodations Tax License

Owners must obtain an annual Accommodations Tax License from their city or county and remit accommodations taxes as applicable.

9. HOA or POA Approval (if applicable)

If the property is within a planned unit development district, a letter of approval from the homeowners' association or property owners' association may be required.

In addition to these documents, short-term rental operators must also obtain an annual business license from their city or county. If the rental agent is not the owner, they must also obtain a separate business license.

It's important to note that requirements may differ depending on the specific city or county. For example, in Charleston, the application materials vary based on the rental property's location and classification (Category 1, 2, or 3).

To ensure compliance with all local regulations, short-term rental owners should carefully review the requirements outlined by their city or county government and submit all necessary documentation when applying for a permit.

South Carolina Short-Term Rental Taxes

When operating a short-term rental business in South Carolina, it's essential to understand the various taxes that apply to your rental income. Properly collecting and remitting these taxes is crucial for compliance with state and local regulations.

State Sales Tax on Accommodations

Short-term rentals in South Carolina are subject to the state sales tax on accommodations, which is currently 7% of the rental amount. This tax is administered by the South Carolina Department of Revenue and must be collected from guests and remitted to the state on a monthly basis.

Local Accommodations Tax

In addition to the state sales tax, many counties and cities in South Carolina impose a local accommodations tax on short-term rentals. For example, Greenville County has a local accommodations tax of 3%, while Charleston County's lodging tax is 2%. These taxes are due monthly and must be remitted to the local tax authority.

State-Administered Local Sales Tax

Depending on your rental property's location within South Carolina, you may also be subject to state-administered local sales taxes. These taxes vary by jurisdiction and are collected by the South Carolina Department of Revenue along with the state sales tax on accommodations.

Local Beach Preservation Fee

Some coastal areas in South Carolina, such as Myrtle Beach, charge a local beach preservation fee on short-term rentals. In Myrtle Beach, the local accommodation tax rate is 3%. This fee helps fund beach maintenance and restoration projects.

Possible Write-Offs and Deductions

As a short-term rental operator, you may be eligible for certain tax write-offs and deductions that can help reduce your overall tax liability. Some common deductions include:

1. Property management fees
2. Cleaning and maintenance expenses
3. Repairs and renovations
4. Advertising and marketing costs
5. Utilities and insurance
6. Depreciation of the rental property

It's important to keep accurate records of all expenses related to your short-term rental business, as these can be used to offset your rental income when filing your taxes. Consult with a tax professional to ensure you are taking advantage of all available deductions and maximizing your tax savings.

By understanding the various taxes that apply to short-term rentals in South Carolina and properly collecting and remitting them, you can ensure compliance with state and local regulations while minimizing your tax liability through available write-offs and deductions.

Does South Carolina Strictly Enforce STR Rules?

Based on discussions in real estate investing forums like Bigger Pockets and Reddit, it appears that enforcement of short-term rental regulations varies across different cities and counties in South Carolina. Some areas, like Charleston and Beaufort, have taken a stricter approach by implementing permit caps, zoning restrictions, and primary residence requirements to limit the proliferation of STRs in residential neighborhoods.

However, compared to other cities with very restrictive policies, South Carolina as a whole is relatively Airbnb-friendly. The state legislature has even considered bills that would prevent local governments from banning STRs outright, although no statewide law has passed yet. This suggests a general openness to short-term rentals at the state level.

In Greenville, the city has updated its regulations to limit new STRs to mixed-use and commercial zones while allowing existing, compliant rentals in neighborhoods to continue operating. This balanced approach aims to accommodate the growing STR market while addressing residents' concerns.

Richland County has also taken a measured approach, focusing more on registering STRs and collecting taxes rather than aggressively cracking down on rule-breakers. The county's regulations allow short-term rentals in most commercial and mixed-use zones, providing opportunities for hosts.

Despite the rules, many hosts continue to operate STRs across South Carolina, even in areas with restrictions. Some may fly under the radar, while others work to comply with local requirements. The general consensus among Bigger Pockets and Reddit users is that while enforcement has increased in certain hot spots, South Carolina remains a viable market for short-term rentals overall.

In summary, although South Carolina cities and counties have implemented various STR regulations, enforcement levels and Airbnb-friendliness vary. The state legislature's support for short-term rentals, coupled with the measured approach taken by many local governments, suggests that South Carolina is relatively accommodating to STRs compared to other markets with outright bans or highly restrictive policies. Hosts continue to operate rentals throughout the state, though compliance with specific local rules is important to avoid potential penalties.

How to Start a Short-Term Rental Business in South Carolina

Starting a short-term rental business in South Carolina requires careful planning and adherence to local regulations. Follow these steps to establish your STR business:

Determine Zoning and Permitting Requirements

• Research the zoning regulations in your property's location to ensure short-term rentals are allowed. Zoning ordinances vary by city and county.

1. In Greenville County, use the Geographic Information System (GIS) to search for your property and determine its zoning. If the property is unzoned, there are no use-based restrictions, but development must still comply with the Land Development Regulations.
2. Obtain necessary permits and licenses, which typically include a business license and may require a short-term rental permit or accessory use permit for home occupation.
3. Tip: If your property isn't zoned for STRs, consider applying for a special exception or exploring alternative locations.

Register Your Business

1. Register your STR business with your local city or county government as required. In Greenville County, you must register by December 31st each year at no cost.
2. Obtain a business license if required by your municipality, even if the county doesn't mandate it. This establishes credibility and professionalism.
3. Tip: Set a reminder to renew your registration and licenses annually to stay compliant.

Prepare Your Property

1. Ensure your rental property meets all local safety, health, and building codes.
2. Create a detailed floor plan and parking plan as required by permit applications. Label each room, indicate the number of beds, and show designated guest parking spaces.
3. Invest in quality furnishings, linens, and amenities to create a welcoming space for guests.
4. Tip: Consider hiring a professional inspector to identify any potential issues before listing your property.

Set Up Tax Collection

1. Register with the South Carolina Department of Revenue to collect and remit the state sales tax (7%) and any applicable state-administered local sales taxes.
2. Obtain an accommodations tax license from your city or county and remit local accommodations taxes as required. Rates vary by location.
3. Track all rental income and expenses diligently for accurate tax reporting.
4. Tip: Use a spreadsheet or specialized STR software to manage your tax obligations efficiently.

Obtain Insurance

1. Secure proper insurance coverage for your short-term rental property. Consider a commercial liability policy or a specialized vacation rental policy.
2. Verify that your insurance covers any potential damages, accidents, or guest injuries on the property.
3. Tip: Shop around for the best insurance rates and coverage options to protect your investment.

Create a Listing

1. Choose a reputable vacation rental platform like Airbnb, VRBO, or Booking.com to list your property.
2. Craft a compelling listing description that highlights your property's unique features, amenities, and location.
3. Take high-quality photos showcasing your rental's best aspects to attract potential guests.
4. Tip: Research your competition and price your rental competitively based on your property's size, amenities, and location.

By following these steps and staying informed about local regulations, you can successfully launch and operate a short-term rental business in South Carolina. Remember to prioritize guest satisfaction, maintain open communication, and adapt to any changes in the regulatory landscape to ensure long-term success.

Who to Contact in South Carolina about Short-Term Rental Regulations and Zoning?

When navigating the complex landscape of short-term rental regulations in South Carolina, it's crucial to know who to contact for accurate information and guidance. Here are the key departments and contacts for STR-related inquiries in various cities and counties:

Greenville County

• Zoning Administration
  Phone: 864-467-7425
• Permitting Office
  Phone: 864-467-7090
• Code Enforcement
  Phone: 864-467-7090
• Planning Department
  Phone: 864-467-4957
• Greenville County Tax Collector
  Phone: 864-467-7050

Richland County

• Richland County Planning Department
  Phone: 803-576-2190
  Address: 2020 Hampton St., First Floor, Columbia, SC 29204
• Richland County Business Service Center
  Phone: 803-576-2287
  Address: 2020 Hampton Street, First Floor, Columbia, SC 29204

Isle of Palms

• Short-Term Rental Coordinator
  Jeanne Garrett
  Phone: 843-886-9912
  Address: City Hall, 1207 Palm Boulevard
• Charleston County Business License/User Fee Dept
  Britt Miller, Revenue Collections
  Phone: 843-202-6080
  Email: bmiller@charlestoncounty.org
• State of South Carolina Department of Revenue Charleston District Office
  Phone: 843-852-3600
  Website: http://www.sctax.org

City of Columbia

For questions about Business Licenses:
Phone: 803-545-3345
Email: businesslicensemail@columbiasc.gov

For hosts looking to connect with others and stay informed about local STR issues, consider joining these community resources:

• BiggerPockets South Carolina Forum: A valuable platform for discussing real estate investing, including short-term rentals, in South Carolina.
• South Carolina Subreddit: While not specifically for STR hosts, this community often discusses local regulations and experiences with short-term rentals.
• Airbnb Community Center - Southeast US: A forum for Airbnb hosts in the Southeast, including South Carolina, to share experiences and advice.
• VRBO Community - South Carolina: A platform for VRBO hosts in South Carolina to connect and discuss local issues.

By utilizing these contacts and community resources, short-term rental hosts in South Carolina can stay informed about regulations, connect with fellow hosts, and navigate the local STR landscape more effectively.

What Do Airbnb Hosts in South Carolina on Reddit and Bigger Pockets Think about Local Regulations?

Airbnb hosts in South Carolina have shared their experiences and opinions about local short-term rental regulations on various online forums. Here are some real-life stories and discussions from verified threads:

Strict Enforcement in Greenville County

A Reddit user shared their experience setting up an Airbnb in Greenville County, noting that within city limits, short-term rentals are only allowed in owner-occupied properties with special permits, business licenses, and occupancy permits. They mentioned that the county actively fines non-compliant owners and takes them to court if they continue to operate illegally.

Another host on Reddit attested that two of their properties in Greenville fell victim to zoning law changes, forcing them to implement 30-day minimum stays. This significantly hurt their business, and they had to reduce rates to maintain bookings. The host mentioned that if they had a mortgage instead of owning the homes outright, they would have sold the properties.

Charleston Hosts Navigating Primary Residence Requirements

In the Charleston subreddit, a user questioned how some hosts were skirting the primary residence requirement for short-term rentals. They noticed multiple listings for entire homes rented for less than 29 consecutive days, despite the guidelines stating that the rented property must be the host's primary residence.

Responses suggested that some hosts might have multiple homes and rent their "primary residence" when they are elsewhere, while others may be committing residence fraud by claiming the property as their primary residence on paper.

These experiences and discussions highlight the varying challenges and uncertainties South Carolina hosts face when navigating local short-term rental regulations. While some areas like Greenville County strictly enforce rules, others like North Charleston seem to have hosts operating in a gray area. As regulations continue to evolve, hosts must stay informed and adapt their strategies to remain compliant and successful in their local markets.

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 area 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.