Unlike states with uniform statewide regulations, South Carolina delegates regulatory authority almost entirely to local governments, creating a patchwork of requirements that vary dramatically from one city or county to another. This localized approach means property owners must pay careful attention to the specific rules governing their property's location to ensure legal operation and long-term success.
This comprehensive guide breaks down everything you need to know about short-term rental laws in South Carolina, from the localized regulatory framework to specific requirements in major cities across the state.
Understanding Short-Term Rental Laws in South Carolina
South Carolina takes a decidedly local approach to short-term rental regulation, with virtually no statewide oversight beyond basic tax collection requirements. This decentralized framework has created a diverse regulatory landscape where rules governing vacation rentals can change dramatically as you cross from one jurisdiction to another.
The variation between cities and counties isn't merely administrative—it can fundamentally determine whether a property can legally operate as a short-term rental at all. Cities like Charleston have implemented some of the strictest short-term rental regulations in the Southeast, severely limiting where they can operate and requiring owner occupancy in residential zones. Meanwhile, other areas maintain more permissive approaches with fewer restrictions on location and operation.
This localized regulatory environment reflects South Carolina's traditional emphasis on local governance, but it creates significant complexity for property owners, especially those with multiple properties or those looking to expand their portfolio across different jurisdictions. A successful operational model in one South Carolina city might be completely prohibited just miles away in a neighboring community.
The regulatory landscape has also become increasingly dynamic in recent years. Many cities have strengthened their oversight of short-term rentals in response to concerns about housing affordability, neighborhood character, and tax collection. Regulations that existed when you purchased a property may change, potentially affecting your operational model and investment returns.
For property owners and investors, this varied and evolving landscape makes thorough research and ongoing monitoring of local regulations absolutely essential. Understanding the specific rules that apply to your property's location is the foundation of legal compliance and successful operation in South Carolina's complex short-term rental market.
Definition of a Short-Term Rental
The definition of what constitutes a "short-term rental" varies somewhat across South Carolina, though most jurisdictions adhere to similar basic parameters. This definitional framework serves as the starting point for determining which regulations apply to your property.
At the state level, South Carolina generally defines short-term rentals as accommodations rented for less than 90 consecutive days, primarily for taxation purposes. However, when it comes to local regulations and permitting, most jurisdictions focus on rentals of less than 30 consecutive days as the primary threshold for short-term rental classification.
This distinction is important because it creates different regulatory categories:
- Rentals under 30 days: Typically subject to the full range of short-term rental regulations, permits, and taxes
- Rentals between 30-90 days: May fall under "medium-term" rentals with different requirements in some jurisdictions
- Rentals over 90 days: Generally considered long-term rentals subject to landlord-tenant laws rather than vacation rental regulations
While this basic definitional framework is relatively consistent, individual cities may further refine their definitions with specific nuances. For example, Charleston specifically defines short-term vacation rentals as properties providing "sleeping accommodations" for periods of 1-29 consecutive days. Other cities may include additional criteria related to property type, owner occupancy, or rental frequency.
It's worth noting that traditional accommodations like hotels, motels, and in some cases bed and breakfasts, typically fall under separate regulatory frameworks with their own specific licensing and operational requirements. The distinction between a bed and breakfast and a short-term rental can sometimes be blurry, but usually hinges on factors like food service, management presence, and the number of units.
Understanding the specific definition that applies in your jurisdiction is crucial, as it determines whether your property is subject to short-term rental regulations and which specific requirements you must meet for legal operation.
Starting a Short-Term Rental Business in South Carolina
Launching a short-term rental business in South Carolina requires careful navigation of local regulations, with requirements varying significantly depending on location. Success depends on thorough research and adherence to local rules, which may evolve over time as communities continue to refine their approach to vacation rentals.
1. Research Local Regulations
Before purchasing a property or converting an existing one to a short-term rental, thoroughly investigate the specific regulations in your city and county. South Carolina's localized approach means that requirements can vary dramatically even between neighboring communities.
This preliminary research is particularly crucial in South Carolina, where some jurisdictions have implemented strict limitations on where short-term rentals can operate. In Charleston, for example, whole-house rentals are banned in residential zones, while Greenville restricts short-term rentals to specific zoning districts. Purchasing a property without understanding these limitations could result in an investment that cannot legally be used as intended.
Start your research with the local government website for your specific city and county, focusing on information from planning departments, business licensing offices, and zoning authorities. Many South Carolina municipalities now have dedicated sections of their websites explaining short-term rental requirements, reflecting the growing importance of this industry.
2. Obtain Necessary Licenses and Permits
Most South Carolina cities require at least two separate authorizations for short-term rental operations:
- Business License: A general license to conduct business within the city or county, typically requiring annual renewal and payment of fees based on anticipated revenue
- Short-Term Rental Permit: A specialized permit specifically for vacation rental operations, often with more detailed requirements related to property characteristics, safety standards, and operational guidelines
These local authorizations form the cornerstone of legal compliance and typically involve:
- Application forms with detailed property information
- Proof of ownership and residency status (particularly important in cities with owner-occupancy requirements)
- Safety certification or inspection reports
- Floor plans and parking information
- Neighbor notification in some jurisdictions
- Fee payment, which varies widely across the state
In addition to these local permits, you'll need to register with the South Carolina Department of Revenue for a retail license to collect and remit state sales and accommodations taxes.
The application processes vary by location, with some cities offering streamlined online systems while others require in-person submissions and inspections. Processing times can range from a few days to several weeks, making advance planning essential, especially if you hope to begin operations during peak tourism seasons.
3. Understand Zoning Restrictions
Zoning regulations represent one of the most significant potential barriers to operating a short-term rental in South Carolina. Many cities restrict short-term rentals to specific zoning districts or limit their concentration in certain neighborhoods.
Charleston's zoning approach is particularly restrictive, with whole-house rentals prohibited in residential zones and owner-occupied rentals limited to specific overlay districts. Greenville similarly restricts short-term rentals under 30 days to specific commercial and mixed-use zones, prohibiting them in most residential areas. Myrtle Beach allows short-term rentals primarily in resort and commercial zones, with restrictions in residential areas.
Before purchasing or converting a property, verify not only that short-term rentals are permitted in your specific zone, but also whether there are additional criteria you must meet, such as owner-occupancy requirements, off-street parking minimums, or property type restrictions. This information is typically available through city planning departments or zoning offices.
4. Comply with Safety Standards
Safety requirements for South Carolina short-term rentals typically include:
- Working smoke detectors and carbon monoxide alarms
- Fire extinguishers
- Emergency exit plans
- Compliance with building codes
- Maximum occupancy limitations based on square footage and bedroom count
- Proper electrical and plumbing systems
Many jurisdictions require initial safety inspections as part of the permit application process, and some mandate periodic re-inspections to ensure continued compliance. These safety standards not only satisfy regulatory requirements but also help protect guests and minimize liability for property owners.
In addition to local requirements, prudent operators implement recommended safety measures like pool barriers (where applicable), adequate exterior lighting, secure entry systems, and first aid kits. These precautions help create a safer environment and can differentiate your property in a competitive market.
5. Register for Tax Collection
Short-term rental operators in South Carolina have significant tax responsibilities at both the state and local levels:
- State Sales Tax: Currently 5% collected by the South Carolina Department of Revenue
- State Accommodations Tax: An additional 2% tax on accommodations
- Local Option Sales Tax: Varies by county, typically 1%
- County Accommodations Tax: Typically 2-3%
- Municipal Accommodations Tax: Typically 1-3% additional tax imposed by cities
To collect these taxes, you'll need to register with the South Carolina Department of Revenue for a retail license and potentially with your local tax authority for local accommodations taxes. While platforms like Airbnb and Vrbo collect and remit some taxes in certain South Carolina jurisdictions, operators remain ultimately responsible for ensuring all tax obligations are fulfilled.
Clear record-keeping is essential for accurate tax reporting, including maintaining documentation of rental income, occupancy periods, and collected taxes. Many professional hosts use specialized software to track these obligations and ensure compliance with varying local requirements.
6. Secure Proper Insurance
Standard homeowners insurance typically doesn't cover commercial short-term rental activities, creating a potential coverage gap for unprepared operators. Adequate insurance for South Carolina short-term rentals usually includes:
- Property coverage for the dwelling and contents
- Liability protection for guest injuries (many cities require at least $1 million in coverage)
- Business interruption coverage
- Coverage for theft or damage caused by guests
While not always mandated by local regulations, appropriate insurance protects your investment and provides critical liability coverage. Some South Carolina municipalities, including Charleston and Columbia, specifically require proof of liability insurance as part of the permit application process, typically with minimum coverage of $1 million.
Many major insurers now offer specialized short-term rental policies or endorsements to standard homeowners policies. Platforms like Airbnb and Vrbo also provide limited host protection programs, but these typically have significant limitations and exclusions, making dedicated insurance advisable.
7. Establish Local Management
Most South Carolina cities require short-term rental operators to designate a local contact person who can respond to issues promptly. This requirement is particularly important for out-of-state owners who cannot personally address emergencies or complaints.
The local contact must typically:
- Be available 24/7 by phone
- Respond to issues within a specified timeframe (often 1-2 hours)
- Have access to the property
- Be authorized to address problems that arise
For example, Columbia requires a local responsible representative if the owner lives more than 45 miles from the property. Charleston similarly requires a local responsible party available 24/7. For non-local owners, this requirement often necessitates hiring a professional property manager or establishing a relationship with a reliable local contact.
Licensing Requirements
South Carolina does not have a statewide licensing system for short-term rentals, instead allowing cities and counties to establish their own permitting and registration requirements. This decentralized approach results in varied processes across different jurisdictions, though most major South Carolina cities have implemented some form of registration or permitting system.
At the state level, the only required "license" is a retail license from the South Carolina Department of Revenue, which enables you to collect and remit state sales and accommodations taxes. This license isn't specifically for short-term rentals but is required for any business collecting sales tax in the state.
Local licensing typically involves two separate authorizations:
- Business License: A general authorization to conduct business within the jurisdiction, typically required annually with fees based on anticipated or actual revenue.
- Short-Term Rental Permit: A specialized permit specifically for vacation rental operations, often with more detailed requirements related to property characteristics, safety standards, and operational guidelines.
Application processes typically involve submitting detailed information about the property and owner, including:
- Property address and specifications
- Owner identification and contact information
- Floor plans (often required to be to scale)
- Parking information
- Local contact details
- Proof of insurance (typically liability insurance of at least $1 million)
- Certification of compliance with safety standards
Permit fees vary significantly across jurisdictions. For example, Columbia charges different fees based on whether the property is owner-occupied ($100 annual fee) or non-owner-occupied ($250 annual fee). Other cities may have flat fees or tiered structures based on property size or rental frequency.
These local permits typically have a defined validity period—most commonly one year—after which renewal is required. The renewal process generally involves confirming continued compliance with regulations, updating property information if needed, and paying renewal fees.
License Renewals
Maintaining valid permits for South Carolina short-term rentals requires attention to local renewal processes and deadlines. Most jurisdictions require annual renewal of short-term rental permits, though the specific timing and procedures vary by location.
The renewal process typically involves:
- Submitting a renewal application before the expiration date
- Paying renewal fees, which may be the same as or less than initial application fees
- Updating property and contact information as needed
- Confirming continued compliance with local regulations
- In some cases, undergoing re-inspection to verify ongoing safety compliance
Unlike some states that coordinate renewal deadlines across jurisdictions, South Carolina's localized system means that each permit follows its own timeline. For example:
- Charleston requires STR permit renewals by February 28 each year
- Columbia's permits expire annually on June 30, with renewals due by July 1
Property owners and managers must carefully track these renewal deadlines, as operating with an expired permit can result in significant penalties. Many jurisdictions impose fines for continued operation without valid permits, and some may implement additional penalties for repeat violations, including potential permit revocation or disqualification from future permit eligibility.
Some South Carolina cities have implemented grace periods for renewals, but these vary by jurisdiction and shouldn't be relied upon. The safest approach is to calendar renewal deadlines well in advance and begin the process early to account for potential processing delays or unexpected complications.
Most local authorities send renewal notices as a courtesy, but the ultimate responsibility for timely renewal rests with the property owner. Changes in contact information or issues with mail delivery could result in missed notifications, making proactive tracking of renewal deadlines essential.
Required Documents
Operating a short-term rental in South Carolina requires maintaining various documents to demonstrate compliance with local regulations. These materials support the initial permit application, facilitate ongoing operations, and may be requested during inspections or in response to complaints.
Essential documentation typically includes:
- Proof of property ownership such as a deed or property tax statement. This establishes your legal right to operate a short-term rental at the location and may be particularly important in cities with owner-occupancy requirements.
- Detailed property information including address, floor plans (often required to be to scale), and room dimensions. Many jurisdictions use this information to determine maximum occupancy limits and ensure the property meets basic requirements for guest accommodations.
- Owner and operator identification including government-issued ID and reliable contact methods. This information ensures authorities can reach the responsible party when needed and verifies that operators meet any residency requirements for specific permit types.
- Local contact information for the person or company responsible for property management. This local representative must typically be available 24/7 to address issues promptly, particularly important for absentee owners who cannot personally respond to emergencies.
- Proof of insurance coverage demonstrating appropriate protection for short-term rental activities. Many South Carolina cities, including Charleston and Columbia, specifically require liability insurance with minimum coverage of $1 million.
- Tax identification numbers including state retail license and federal tax ID (EIN for businesses, SSN for individuals). These identifiers facilitate proper tax collection and reporting to relevant authorities.
- Compliance certifications related to safety inspections, occupancy limits, and adherence to local ordinances. These documents verify that the property meets established standards for guest safety and neighborhood compatibility.
Beyond these regulatory documents, responsible operators maintain additional records to support their business operations, including:
- Guest registration information (required by cities like Charleston)
- Cleaning and maintenance logs
- Tax payment records and receipts
- Communications with local authorities or neighbors
Organizing these materials in both physical and digital formats ensures you can quickly access them when needed. Many professional hosts create comprehensive digital filing systems with backup copies of all critical documents, protecting against loss and enabling remote access when questions arise.
Taxes for Short-Term Rentals
South Carolina imposes significant tax obligations on short-term rental operators, with a multi-layered system that includes state, county, and municipal components. Understanding and fulfilling these tax responsibilities is an essential component of legal operation and financial management for vacation rental properties.
The tax structure for South Carolina short-term rentals typically includes:
- State Sales Tax: A 5% tax collected by the South Carolina Department of Revenue on the gross proceeds from room rentals.
- State Accommodations Tax: An additional 2% tax specifically on accommodations, also collected by the Department of Revenue.
- Local Option Sales Tax: A county-level tax, typically around 1%, though rates vary by location.
- County Accommodations Tax: Many counties impose their own accommodations tax, typically around 2-3%.
- Municipal Accommodations Tax: Cities may impose an additional accommodations tax, generally 1-3% depending on the municipality.
This multi-layered tax structure can result in total tax rates of 10-15% or more, depending on the specific location of your property. For example, in Charleston, the combined tax rate includes:
- 5% state sales tax
- 2% state accommodations tax
- 1% local option sales tax
- 1% county transportation tax
- 1% school district/education tax
- 2% Charleston County accommodations tax
- 2% City of Charleston accommodations tax
To collect and remit these taxes, you'll need to register with the South Carolina Department of Revenue for a retail license, and potentially with local tax authorities for county and municipal accommodations taxes. The registration process typically involves:
- Completing application forms with business and property information
- Providing owner identification and contact details
- Specifying the property location and type of accommodation
- Indicating expected rental frequency and revenue
Tax reporting and remittance schedules vary based on revenue volume, but most operators file monthly or quarterly. The South Carolina Department of Revenue provides an online system for state tax filing, while local processes vary by jurisdiction.
Major booking platforms like Airbnb and Vrbo have agreements to collect and remit certain taxes in some South Carolina jurisdictions, but these arrangements don't necessarily cover all applicable taxes or may apply only to bookings made directly through those platforms. Operators remain ultimately responsible for ensuring all tax obligations are fulfilled.
Beyond these consumption taxes, rental income is subject to federal and state income taxes. However, short-term rental operators can reduce their tax burden through various deductions related to their rental business, including:
- Property depreciation
- Mortgage interest
- Property taxes
- Utilities and internet
- Cleaning and maintenance costs
- Furnishings and supplies
- Platform commission fees
- Marketing expenses
- Professional service fees
Proper record-keeping is essential for maximizing these deductions while maintaining compliance with tax regulations. Many professional hosts work with accountants specializing in short-term rentals to optimize their tax strategy and ensure accurate reporting.
Statewide Rules
Unlike some states with comprehensive vacation rental legislation, South Carolina has taken a hands-off approach at the state level, with minimal overarching regulations specific to short-term rentals. This absence of statewide rules has created an environment where local governments exercise primary regulatory authority, leading to significant variation across the state.
The most notable aspect of South Carolina's state-level approach is what doesn't exist—there is no statewide licensing system, no uniform operational standards, and no preemption of local regulatory authority. The state government has generally allowed cities and counties to develop their own regulatory frameworks based on local priorities and concerns.
What does exist at the state level primarily relates to taxation rather than operational regulations:
- Tax Requirements: State law establishes the 5% state sales tax and 2% state accommodations tax that apply to all short-term rentals across South Carolina, creating a consistent baseline tax obligation regardless of location.
- General Business Regulations: Short-term rental operators must comply with standard business registration requirements if operating as a formal business entity rather than as an individual.
- Building and Safety Codes: While not specific to vacation rentals, state building and safety codes establish minimum standards that all residential properties must meet, regardless of use.
This minimal state framework means that the regulatory landscape is defined almost entirely at the local level, with cities and counties exercising broad discretion to establish their own requirements, restrictions, and operational standards.
For property owners and investors, this state-level approach creates both opportunities and challenges. The absence of uniform statewide restrictions allows for potential operation in areas with minimal local regulation, but it also creates a complex patchwork of requirements across different jurisdictions that requires careful navigation.
Short-Term Rental Laws by City
South Carolina's major cities have each developed distinct regulatory approaches to short-term rentals, reflecting their unique housing markets, tourism patterns, and community priorities. Understanding these city-specific regulations is essential for successful operation in different markets across the state.
1. Charleston, South Carolina Short Term Rental Laws
Charleston's approach creates a sharp distinction between residential and commercially zoned areas, with whole-house rentals effectively prohibited in residential zones. The city's regulations focus on preserving neighborhood character while concentrating commercial vacation rentals in appropriate zones.
Key Regulations:
- Short-term rentals defined as accommodations for 1-29 consecutive days
- Whole-house rentals banned in residential zones
- Residential STRs must be owner-occupied with the owner living on-site
- Commercial STRs allowed in commercially zoned areas
- Maximum of 4 adults per rental
- Minimum of 3 off-street parking spaces required
- Local responsible party must be available 24/7
- Guests must be provided with a city-approved "Good Neighbor Guide"
- Maintenance of a guest registry
- Liability insurance of at least $1 million required
- Annual permit renewal by February 28
Charleston's enforcement system includes proactive monitoring, response to complaints, and significant penalties for non-compliance. The city has dedicated enforcement staff and has demonstrated willingness to pursue legal action against properties operating without proper permits or violating operational requirements.
Tax Rates:
- 5% state sales tax
- 2% state accommodations tax
- 1% local option sales tax
- 1% county transportation tax
- 1% school district/education tax
- 2% Charleston County accommodations tax
- 2% City of Charleston accommodations tax
- Total: 14% combined tax rate
2. Columbia, South Carolina Short Term Rental Laws
Columbia requires permits for short-term rental operations, with different fee structures for owner-occupied and non-owner-occupied properties. The city's approach focuses on basic safety standards and ensuring local management for absentee owners.
Key Regulations:
- Short-term rentals defined as rentals of 30 days or less
- Different permit fees for owner-occupied ($100) and non-owner-occupied ($250) properties
- Business license required in addition to STR permit
- Local responsible representative required if owner is more than 45 miles away
- Minimum of 2 off-street parking spaces per unit
- $1 million liability insurance requirement
- Compliance with safety and maintenance standards
- Annual permit renewal by July 1
Columbia enforces these regulations through permit reviews, complaint response, and periodic inspections. The city's approach balances tourism accommodation needs with residential quality of life through reasonable operational requirements rather than strict zoning prohibitions.
Tax Rates:
- State sales tax (5%)
- State accommodations tax (2%)
- Local taxes (specific Columbia city/county rates apply)
3. Myrtle Beach
Myrtle Beach relies heavily on zoning as its primary regulatory tool for short-term rentals, generally permitting them in resort and commercial areas while restricting them in certain residential zones. The city's approach acknowledges the importance of vacation rentals to its tourism economy.
Key Regulations:
- Short-term rentals defined as rentals less than 90 days
- Business license required for operation
- Zoning restrictions with most residential zones not allowing STRs, except RMV zones
- New ordinance (January 2025) prohibits converting STR buildings to long-term rentals in specific commercial areas to protect lodging tax revenue
Myrtle Beach's regulatory focus appears to be primarily on zoning and business licensing, with less emphasis on the detailed operational requirements seen in cities like Charleston. This reflects the city's greater acceptance of vacation rentals as a core component of its tourism infrastructure.
Tax Rates:
- State sales tax (5%)
- State accommodations tax (2%)
- Myrtle Beach local accommodations tax
- Horry County hospitality fee
4. Greenville, South Carolina Short Term Rental Laws
Greenville's regulations rely heavily on zoning designations to control short-term rental locations, with a clear distinction between different rental durations. The city's approach effectively prohibits rentals of less than 30 days in most residential zones.
Key Regulations:
- Different rules based on rental duration:
- Rentals less than 30 days: Require STR permit and business license, limited to specific commercial and mixed-use zones
- Rentals 30-89 days: Require only a business license, permitted in more zones including some residential areas
- Strict zoning restrictions with rentals under 30 days prohibited in most residential zones
- Permitted short-term rentals must comply with noise, parking, pet, and occupancy ordinances
Greenville enforces these regulations through permit reviews and active compliance monitoring, with the city reportedly taking a stricter approach to enforcement than some other South Carolina jurisdictions.
Tax Rates:
- State sales tax (5%)
- State accommodations tax (2%)
- 3% local accommodations tax
- Additional city/county taxes may apply
Bottom Line
Successfully operating a short-term rental in South Carolina requires careful navigation of the state's localized regulatory landscape. With minimal state-level guidance and significant variation between jurisdictions, property owners must take a location-specific approach to compliance and operational planning.
Before investing in a short-term rental property in South Carolina:
- Research thoroughly - Understand all applicable local regulations, including permit requirements, zoning restrictions, and operational standards. This research should be location-specific and include consultation with local planning departments or legal advisors familiar with the jurisdiction.
- Consider location carefully - The dramatic differences in local regulations may make some areas significantly more favorable for short-term rental investments than others, even within the same region. These regulatory differences can fundamentally impact your property's operational viability and return on investment.
- Budget for compliance costs - Factor in permit fees, potential property modifications for safety compliance, insurance requirements, and ongoing operational expenses related to regulatory compliance. These costs vary by jurisdiction but should be incorporated into your financial planning.
- Implement professional management practices - Regardless of local requirements, professional standards for guest screening, property maintenance, noise management, and neighbor relations help prevent problems and support the sustainability of your business.
- Stay informed about regulatory changes - South Carolina's short-term rental regulations continue to evolve, with many jurisdictions modifying their approaches in response to market developments and community feedback. Monitoring local government communications and participating in local host associations can help you stay ahead of regulatory changes.
The short-term rental landscape in South Carolina presents both opportunities and challenges. By understanding and adhering to local regulations, operators can build successful businesses that contribute positively to the state's tourism economy while maintaining good relationships with local communities and regulatory authorities. The effort invested in proper compliance not only avoids potential penalties but also supports the long-term viability of your vacation rental investment in South Carolina's dynamic hospitality market.
