Michelle Almeyda-Wiedemuth, A Realtor & Charleston Short Term Rental Expert Is Here to Guide You
People love the Charleston Lowcountry. In fact, each year more and more individuals and families (some 7.5 million!) are coming to visit and vacation in the Holy City—either in the historic downtown district, or along the many coastal beach towns, such as Sullivan’s Island, Isle Of Palms, Folly Beach, John’s Island, Mount Pleasant, and so on.
Equally astounding is the number of people moving to Charleston, either as a primary home or as a vacation/Short Term Rental (STR) property. After all, having a steady inflow of renters around the calendar year can help offset the cost of ownership, which is a very compelling selling point for prospective buyers.
There are some essential things to know if you are considering a STR property in the Charleston Lowcountry. If not, you could be in for a rude awakening.
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Residential Short Term Rental Defined
According to Charleston’s STR Ordinance, a short-term vacation rental must provide sleeping accommodations for a period of 1-29 consecutive days. The property owner must reside on the property in order to rent out one or more rooms to provide sleeping for a maximum of four people (18 and older).
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Short Term Rental Permits: Charleston Proper
Before you do anything, you’ll need get a short term rental permit for a residential property on the Charleston peninsula. A few hard-and-fast rules apply for STR.
- Must not have more than one STR unit on any residential property
- Must be an accessory unit – the main house cannot be rented short term
- Must declare property as a primary residence
- Must be present (physically) at the property when tenants are present
- Must be minimum of one off-street parking space for rental tenant
(NOTE: On the Charleston Peninsula, there are three zones to consider when selecting the property: Southern, Upper, & STR Overlay. Each one has their own, very specific, rules and policies.)
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Short Term Rental Permits: Islands & Beaches
The classic beach home. That’s what the Charleston Lowcountry is known for. Many people have dreams of retiring to one of our magical beachfront communities and start the process by first seeking a short-term rental investment property.
SEABROOK ISLAND
Currently, the town council is looking to place a 25% cap on Short term rental permits. A business license and permit are required. All short-term rentals are subject to a maximum occupancy limit during the overnight hours. The maximum occupancy for each rental unit is 2 individuals per code-compliant bedroom, plus 2 additional occupants (or 4 additional occupants for units with 2,500+ square feet).
Children under the age of two (2) do not count toward the maximum occupancy limit.
KIAWAH ISLAND
Kiawah Island, South Carolina has a short-term rental (STR) ordinance that regulates the commercial activities of properties rented for less than 30 consecutive days. The ordinance has four zones with different rental unit caps:
- Zone 1: Rental units are capped at 20% of dwellings
- Zone 2: Rental units are capped at 40% of dwellings
- Zone 3: This zone includes areas around Kiawah Island Golf Resort and its Sanctuary Hotel, and has no limit
- Other areas: Places that were previously included in the 40% cap but are considered more "tourist-centric" now have no cap
The ordinance also requires that properties pass a building code inspection, and that all licensed rentals comply with parking rules and safety requirements. Property owners must also have local contacts to address problems.
SULLIVAN’S ISLAND
Sullivan’s Island openly prohibits short term rentals (any rentals less than 30 days). This recent ordinance was set in 2022.
MOUNT PLEASANT
Owners/residents who plan to use residential homes, accessory dwellings, or portions of their homes as short-term rentals will be required to have a short-term rental permit and a business license.
If you would like to be included on the wait list for a short-term rental permit, please send an email request to [email protected] with the property address, owner's name and contact information (email and phone number), and what type of dwelling unit you desire to rent (entire home, accessory dwelling unit (ADU), or bedrooms within the home).
(NOTE: You must have a certificate of occupancy (CO) for the home and accessory dwelling unit.)
FOLLY BEACH
Short-term rentals are allowed in many neighborhoods of Folly Beach, South Carolina, with a permit. However, the city has a cap of 800 short-term rental licenses, and as of 2024 there is a long waiting list. In January 2023, homeowners voted to limit the number of short-term rentals, and some say the cap has negatively impacted real estate.
Other short-term rental regulations in Folly Beach:
- Licensing: All short-term rental business licenses must be renewed through the city.
- Registration: All rental registration applications and payments must be made online through Rentalscape.
- Permit: Hosts must obtain a permit to operate as a short-term rental for stays less than 30 days. The permit must be valid and renewed annually.
- Max bedrooms: Properties with five bedrooms or less can operate as a short-term rental.
- Business license: Both the host and owner, if not the same person, are responsible for paying for a business license
DANIEL ISLAND
Daniel Island allows short-term rentals (STRs) of 1–29 days, but the City of Charleston has a strict application and approval process. Daniel Island is in Residential Category 3 of the City of Charleston's short-term rental regulations (which also includes other areas outside of the peninsula, such as West Ashley, Johns Island, and James Island). To operate an STR on Daniel Island, you must:
- Apply for and receive a permit from the City of Charleston
- Ensure the property is owner-occupied and the owner resides there overnight
- Keep a guest register
- Comply with business license and revenue collection laws
- Provide guests with a rental packet
- Include the STR permit number in all advertisements
- Property must be located in a building that was constructed 50 or more years ago
- Property must have at least one off-street parking space in addition to any other off-street parking required for the property's existing uses
- Property must have working smoke alarms, carbon monoxide detectors, and fire extinguishers
- Each bedroom must have an operable window or door
- The property must have visible address numbers and no visible electrical hazards
JOHNS ISLAND
Johns Island is an unincorporated area within Charleston County, so it doesn't have specific short-term rental regulations. However, hosts must follow the county's zoning and business license regulations, pay taxes, and adhere to state health and safety codes. Here are some short-term rental requirements for Charleston County:
- A permit is required for unincorporated areas, including most of Johns Island. Permits must be renewed annually within the month of issuance.
- There are three zoning categories for short-term rentals in unincorporated areas:
- Limited Home Rental: A primary residence that can be rented for a maximum of 72 days per year
- Extended Home Rental: An investment property that can be rented for a maximum of 144 days per year, and requires a special exception from County Zoning
- Commercial Guest House: A short-term rental in commercially zoned districts
JAMES ISLAND
The Town of James Island does not allow property owners to rent their home out as a short-term rental if they do not reside at the property full time. In order to have a legal Bed & Breakfast or short-term rental for less than 30 days, the home must not only be owner-occupied (full time), but it must also go through the correct application process. The requirements are as follows:
- Completed Bed & Breakfast/ Short Term Rental Application
- Completed Business License Application
- Proof of full-time residency must be provided at the time of application with owner-occupied legal residence (4%) tax bill, driver’s license, voter registration, vehicle registration, and any other documentation requested by the Zoning Administrator and listed on the application.
- Floor Plan of Home, with required safety features noted.
- Only one car per guest room is allowed and must be capable of being completely parked within and upon the premises.
- Home must be rented out for a minimum of 30 days at a time if it is not full-time owner occupied.
WEST ASHLEY
You can short-term rent in West Ashley, but there are specific requirements. You'll need a permit to short-term rent in unincorporated areas of Charleston County, which includes some areas of West Ashley. The type of permit you need depends on the zoning category and the property's location:
- Limited Home Rental: For short-term rentals of your primary residence for up to 72 days in a year
- Extended Home Rental: For short-term rentals of an investment property for up to 144 days in a year, which requires a special exception from County Zoning
- Commercial Guest House: For short-term rentals in commercially zoned districts
Other requirements include:
- The property used for short-term rentals may be inspected annually by city personnel to ensure compliance with zoning ordinances.
- If your property qualifies for the 4% Legal Residence exemption, you must notify the Assessor in writing within six months of starting to use it as a short-term rental.
- Hosts must obtain a permit to operate as a short-term rental for stays less than 30 days, and the permit must be valid and renewed annually.
- The maximum number of bedrooms for a short-term rental is five.
- Both the host and owner, if they are not the same person, are responsible for paying for a business license.
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FREE CONSULTATION:
“Short term rentals are a great way to offset the cost of owning a beach or vacation property in the Lowcountry. However, many stipulations apply and, unfortunately, new homeowners can be in for a big letdown if they fail to understand all the rules, regulations, ordinances, and restrictions which apply to short term rentals. And where you buy/live determines the type of STR you can have (or not). It can be confusing, but that’s what I’m here for—to provide the insight and guidance you need to make a more informed decision. Let’s talk!”
--Michelle Almeyda-Wiedemuth,
Charleston’s Trusted Realtor
To learn more about STRs in the Lowcountry, or about buying or selling property in the Charleston Lowcountry, contact me today.
Let’s Connect
1+843-818-3628
[email protected]
