South Carolina has always been one of the best states for investing in an Airbnb property in the U.S. Its rich history, cultural monuments, unique architecture, beautiful nature, wonderful beaches, mild weather, and southern charm are just a few of the factors that bring domestic and international tourists year-round. But before starting an Airbnb business, investors need to check out South Carolina short-term rental laws.
All in all, there are no statewide South Carolina Airbnb laws, and regulation of the STR industry has been entrusted to local authorities. Many South Carolina cities have introduced their own rules to govern Airbnb properties to protect local communities.
In this article, we'll cover everything you need to know about South Carolina short-term rental regulations, necessary documents, obligatory taxes, and city-specific rules. Still, you should always check out with a local real estate lawyer or the local government as regulations can and do change over time.
While a successful Airbnb investment needs to be compliant with regulations, it also has to be based on data-driven decisions. Summer Forecast provides you with unlimited access to robust data, intuitive analytics, and powerful forecasting tools to build a top-performing STR portfolio and outperform the competition each and every time.
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South Carolina's definition of a short-term rental
The state of South Carolina defines a short-term rental as any single family house, dwelling unit, room, unit or group of units in a condominium, co-op or timeshare, or home that is offered for a fee for less than 30 consecutive days. This excludes units that are used for nonresidential use, such as retail, restaurant, banquet space, or event center.
A similar definition is widely adopted by most cities across South Carolina, while there are some differences in certain locations.
How to start a short-term rental business in South Carolina
The step-by-step process of launching an Airbnb business in South Carolina varies by city. However, there are some requirements that are applicable in most locations, including:
- Short-term rental permit: Many cities in South Carolina require Airbnb operators to have a STR permit which can be obtained after getting a local business license. Applications need to be submitted along with some documents, specified below, and certain fees which are generally reasonable. Permits are valid for one year.
- Business license: South Carolina vacation rental business owners need to have a business license issued by local authorities. Obtaining this license is usually the first step in the process of starting a STR business. Business licenses are valid for one year, and fees are calculated based on the gross revenue from the rental property.
- Tax registration: Airbnb owners need to be registered to pay taxes at the state, county, and city level.
- Zoning ordinances: Many South Carolina markets permit STRs in some zoning districts (usually commercial) and prohibit them in others (usually residential). Hosts need to check out local regulations in this regard and ensure compliance.
- Safety regulations: Airbnb properties need to have working fire safety devices, and in some cases they need to undergo an inspection.
- Short-term rental insurance: In general, vacation rentals should operate with a comprehensive Airbnb insurance policy that covers both property damage and general liability.
- Payment of fees: South Carolina short-term rental owners need to pay different fees for permits, licenses, and inspections.
- Required paperwork: To apply for a STR permit and business license, property owners or operators need to prepare documents providing information about the property, the owner, the agent, and the emergency contact as well as site plans and floor plans.
When getting ready to list your South Carolina property on Airbnb and other booking platforms, it's important to check out the most up-to-date state and local regulations and prepare all necessary documents to ensure a speedy process.
Short-term rental licensing requirements in South Carolina
All South Carolina short-term rental property owners need to have a business license which is issued by the city authorities. The application requires basic information about the business and the payment of an annual fee which depends on the gross revenue. Business licenses are valid for one year and need to be renewed in the spring.
In addition, many South Carolina cities require hosts to get local STR permits. The necessary documents vary somewhat but generally offer information about the property, the zoning, the owner, and the operator. In most cases, these permits are also annual and cost up to a couple hundred dollars.
License renewals for short-term rentals in South Carolina
Local South Carolina business licenses need to be renewed on an annual basis. Fees need to be paid each year according to the amount of revenue that the rental property generated. This usually needs to be done by April.
When applicable, short-term rental permits are also renewable annually in exchange for a fee.
Required documents for short-term rentals in South Carolina
To start a South Carolina short-term rental business, owners need to have:
- Driver's license
- Federal EIN
- Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
- Proof of ownership and/or residence
- Proof of payment of fees
- Site plan
- Floor plan
- Insurance
The exact type of documents that need to be presented depends on the specific rules in each market, so hosts should check with local authorities to ensure compliance and readiness.
South Carolina short-term rental taxes
South Carolina Airbnb investors need to pay a range of state and local taxes.
Following is a list of applicable Airbnb taxes:
- State Sales Tax: 5.0% remitted to the State
- State Accommodations Tax: 2.0% remitted to the State
- Local Option Sales Tax: 1.0% remitted to the State
- County Transportation Tax: 1.0% remitted to the State
- School District/Education Tax: 1.0% remitted to the State
- County Accommodations Tax: Up to 3.0% remitted to the County
- City Accommodations Tax: Up to 3.0% remitted to the State
- Income Tax: Federal and local rates
- Property Tax: State and municipal rates
The combined South Carolina short-term rental rates can easily exceed 12-14%, which is a major portion of potential Airbnb revenue. However, hosts can deduct some business operating expenses from their taxable income to minimize their tax burden.
Eligible deductibles include:
- Property depreciation (Hint: Conduct a short-term rental cost segregation study to optimize tax benefits.)
- Property tax
- Mortgage interest
- Mortgage insurance premium (MIP)
- Airbnb insurance
- Furniture, appliances, and electronics cost
- Maintenance costs
- Airbnb property manager charges
- Utility bills
- Cleaning fees
- Accounting, legal, and other professional service fees
- Home office and business travel costs
While paying all applicable taxes is a must for a smooth Airbnb business in South Carolina, it's also important to take advantage of available tax deductions to boost cash flow and profitability.
Statewide short-term rental laws in South Carolina
In the absence of a comprehensive South Carolina short-term rental bill, there are no major statewide regulations. Generally speaking, Airbnb hosts need to have a valid business license, comply with local codes and ordinances, pay state and local taxes, and ensure the safety of guests and neighbors.
Short-term rental laws by South Carolina city
Bill 953 makes it illegal for governing bodies to prohibit short-term rentals except under special circumstances. However as of October 2024, this bill remains under consideration and has not been enacted into law.
Under the current circumstances, in the absence of statewide regulations, individual South Carolina cities have introduced their own Airbnb laws.
Following are the short-term rental regulations in the most popular Airbnb destinations across South Carolina.
1. Charleston, South Carolina short-term rental laws
In 2018, the City of Charleston approved Ordinance with Ratification Number 2018-043 to amend Chapter 54 of the City Code to regulate short-term rentals. Charleston defines a STR as a conditional use to provide sleeping accommodations for a period between one and 29 consecutive days.
There are two types of Charleston STRs:
- Commercial Short-Term Rental: This is a conditional use where a conforming or legally nonconforming dwelling unit is converted into a fully functioning, private accommodations use, including cooking, living, sanitary, and sleeping facilities into a single dwelling unit. It is rented out for between one and 29 consecutive days. It can be occupied by a maximum of four unrelated people–pursuant to the definition for family. Commercial STRs are limited to commercially zoned properties in the Short-Term Rental ST Overlay Zone, where the total number of this type of rentals is limited.
- Residential Short-Term Rental: This is a conditional use where the owner of the property, who is also a resident, uses one or more rooms for the purpose of providing sleeping accommodations to no more than four adults for a period of between one and 29 consecutive days. The owner must reside overnight on the property when Residential STR guests are present.
Operating an Airbnb business in Charleston requires a short-term rental permit which can be:
- Commercial STR Permit: This is issued to properties located in the Short-Term Rental ST Overlay Zone.
- Category 1 Residential STR Permit for buildings in the National Register of Historic Places: This applies to properties within the Old and Historic District.
- Category 2 Residential STR Permit for buildings constructed at least 50 years ago: This is issued to properties on the peninsula outside of the Old and Historic District and the short-term Rental ST Overlay Zone.
- Category 3 Residential STR Permit: This applies to properties in all other areas of the City off of the peninsula.
To apply for a STR permit in Charleson, you need to submit:
- Owner's name, address, phone number, and email
- Emergency contact's name, phone number, and email
- Registered agent's name, address, phone number, and email, if applicable
- Operator's name, address, phone number, and email, if applicable
- Property's address, ID number, and type
- Total number of bedrooms, rooms for rent, and parking spaces
- Information about the presence of a smoke detection system, smoke alarms, and a fire sprinkler system
- Information about changes to different systems within the property
- Site plan or survey of the property
- Photographs showing the current view of the exterior of the building
- Complete floor plans for the entire building
- Copy of the driver's license
- Sworn affidavit
- Zoning and application review fee of $200
- Fire inspection and plan review fee including a $40 base inspection fee, $32.21 plan review fee, and additional $32.61 per floor
- Charleston business license including a $64 base fee plus $3.90 per additional $1,000 of expected income
All STR permits are valid for one year and need to be renewed before the date on which they were issued. Renewing a permit requires the submission of similar documents as issuing a new permit. A permittee can hold only one Residential STR Permit at a time.
Charleston vacation rental properties need to comply with certain requirements related to maximum occupancy (no more than four adults), safety devices, parking spaces, and advertising. These regulations vary slightly for different types of STRs, so owners/operators need to check the specific rules for their property before getting started.
Meanwhile, the total taxes on accommodations, including short-term rentals, to be paid by Charleson hosts is 14.0% in Charleston County (including a 2.0% Charleston County Accommodations Tax and 2.0% City of Charleston Accommodations Tax) and 12.0% in Berkeley County (including a 2.0% City of Charleston Accommodations Tax).
Despite regulations, non-owner occupied short-term rentals are legal and relatively unrestricted in Charleston, SC as long as they are located within the specifically designated zone. It's totally worth it for investors to explore opportunities in Charleston, which is one of the absolutely top short-term rental markets to invest in across the U.S., driven by the historic sites, the unique atmosphere created by the cobblestone streets and the pastel antebellum houses, the lavish cuisine, and the year-round festivals and markets.
Following is a summary of the performance of the Charleston Airbnb market, on average, based on data from Summer Forecast:
- Gross Revenue: $78,936
- Daily Rate: $411
- Occupancy Rate: 69%
- Short-Term Rentals: 835
- Listing Price: $749,000
- Active Listings for Sale: 123
2. Myrtle Beach, South Carolina short-term rental laws
The City of Myrtle Beach regulates short-term rentals in Appendix A, Zoning of the City Code of Ordinances. Myrtle Beach refers to STRs as visitor accommodations or transient accommodation, which is defined as a living unit or other accommodation used as a place of human habitation with sleeping accommodations regardless of the manner of ownership or structure, which is exchanged, furnished to another, used, rented, leased, or sub-leased for any time period less than 90 continuous days. This applies to timesharing, fractional ownership, tenancy in common (TC), shared appreciation mortgages, and investment partnerships. A visitor accommodation is a commercial use.
In general, Myrtle Beach short-term rentals are not allowed in residential neighborhoods, which refers to zoning districts starting with R. The only exception is the RMV: Residential Multifamily Visitor zone.
Visitor accommodations are permitted use in the RMV, MU-H (Mixed-Use High Density), C6 (Urban Village), A (Amusement), E (Entertainment), HC1 (Highway Commercial), and HC2 (Highway Commercial) zoning districts and special exception in the IR (interim Redevelopment) zoning district.
Myrtle Beach Airbnb hosts need to have a business license before launching their endeavor. Obtaining a business license requires the submission of an application form with some basic information about the business and the business owner. Business licenses are valid for one year and need to be renewed before April 30 of each year. The business license fee is determined as a percentage of the total revenue generated by the rental business.
Myrtle Beach has a City Local Accommodations Tax of 3%, which is the maximum rate allowed by the State.
Myrtle Beach, SC short-term rental regulations allow for non-owner occupied Airbnb rentals, provided that they are located in one of the permitted zoning districts. Investors who are new to the market can consult with a local real estate agent or professional Airbnb manager to locate profitable opportunities within the allowed areas.
Below, you can check the average performance of the Myrtle Beach vacation rental market according to Summer Forecast analysis:
- Gross Revenue: $29,879
- Daily Rate: $192
- Occupancy Rate: 57%
- Short-Term Rentals: 1,558
- Listing Price: $409,000
- Active Listings for Sale: 117
3. Greenville, South Carolina short-term rental laws
The City of Greenville refers to short-term rentals as visitor accommodations and also as General Lodging.
Greenville distinguishes between two types of STRs:
- STRs of less than 30 days: Visitor accommodations of less than 30 days are not allowed in residential zoning districts, which refers to districts beginning with RH-, RN-, and RC-. They are permitted in the MX-2, MX-3, MX-5, MX-D, MXS-2, MXS-3, MXS-5, MXS-D, BG, BH, IX, and CM zoning districts.
- STRs of 30-89 days: Visitor accommodations of between 30 and 89 days fall under the General Lodging category, which is divided into General Lodging with up to ten guest rooms and General Lodging with more than ten guest rooms. The latter includes hotels, motels, inns, bed and breakfasts, hostels, extended stay facilities, and short-term rentals. They are allowed in the RH-A, RH-B, RH-C, RH-D, RN-A, RN-B, RNX-B, RN-C, RNX-C, RC-2, RC-3, RC-5, IG, CV, and PK as well as in the MX-2, MX-3, MX-5, MX-D, MXS-2, MXS-3, MXS-5, MXS-D, BG, BH, IX, and CM zoning districts.
To operate an Airbnb business in Greenville, owners need a short-term rental permit, which requires submitting:
- Property address
- Property zone
- Type of zoning: For less than 30 days or for 30+ days
- Owner's name, address, phone number, and email
- Type of structure
- Type of rental: Individual room or entire house/unit
- Rental duration: Daily, weekly, or monthly
- Owner-occupied during rental or not
- Permit fee of $40
In addition, hosts have to get a business license from the City. To do that, they need to submit a business license application and pay a fee calculated based on the gross revenue of the business. Business licenses are valid for one year and have to be renewed by April 1 of each year.
Greenville, SC vacation rental owners need to pay a Local Accommodations Tax at a rate of 3%.
While Greenville Airbnb laws aim to protect residential communities, they allow non-owner short-term rentals in non-residential districts. Investors who know how to find Airbnb properties for sale with strong potential are able to make excellent investments in the Greenville market.
Below, interested investors can check out data on the average performance of Greenville STRs provided by Summer Forecast:
- Gross Revenue: $30,757
- Daily Rate: $161
- Occupancy Rate: 68%
- Short-Term Rentals: 325
- Listing Price: $422,375
- Active Listings for Sale: 98
4. Columbia, South Carolina short-term rental laws
The City of Columbia regulates STRs in Article IX of the City Code of Ordinances after the approval of Ordinance 2023-037. There, a short-term rental is defined as the use and enjoyment of a dwelling unit or portion of it for a duration of less than 30 consecutive days in exchange for valuable consideration. This definition excludes hotels, motels, bed and breakfast establishments, and inns.
All Columbia Airbnb operators need to hold a short-term rental permit. Submitting an application requires the following:
- Dwelling unit's address
- Dwelling unit's number of bedrooms
- Owner's name, address, and phone number
- Responsible local representative's name, address, and phone number
- Certification that the owner has read all applicable city regulations
- Application fee of $50
- STR permit registration fee of $100 for owner-occupied STRs and $250 for non-owner occupied STRs
Each dwelling unit needs to have a separate STR permit. Permits are valid for one year, and a permit renewal application needs to be submitted by July 1 of each year, while paying the above-listed fees.
In addition, vacation rental owners in Columbia, SC need to hold a local business license before applying for a STR permit. Business licenses are valid for one year and expire on April 30.
Columbia, SC short-term rentals need to comply with the following requirements:
- Determine the short-term rental offering in all advertising
- Comply with all city ordinances and codes related to safety and other issues
- Allow safety inspections with a 24-hour notice
- Keep records demonstrating compliance with city provisions for two years
- Keep records with the name and phone number of all guests for two years
- Have an emergency contact able to take phone calls at all times
- Allow bookings and reservations by guests who are at least 18 years of age
- Not make rentals available for occupancy for less than one night
- Include the STR permit number in all online advertising
- Make a house manual available to each guest that includes at least emergency contact numbers, owner's or responsible local representative's name and contact information, instructions or diagram of parking spaces, and house rules
- Provide two parking spaces
- Not exceed maximum overnight occupancy of two persons excluding minor children per bedroom plus two additional persons
- List any guest occupying the rental in the booking or reservation
- Notify all adjacent households and neighborhood associations that the property is being operated as a STR
The Columbia short-term rental ordinance makes the capital one of the most conducive to Airbnb cities in the state of South Carolina. While Airbnbs need to be permitted and licensed, they are allowed throughout the city with no zoning restrictions. Considering the strong performance of the Columbia vacation rental market and the affordable property prices, all investors–even beginners–are able to find great STR options.
You can check out the performance of the Columbia Airbnb market based on Summer Forecast analytics below:
- Gross Revenue: $27,975
- Daily Rate: $146
- Occupancy Rate: 66%
- Short-Term Rentals: 332
- Listing Price: $259,000
- Active Listings for Sale: 133
5. Spartanburg, South Carolina short-term rental laws
The City of Spartanburg generally defines short-term rentals as properties rented out for less than 30 consecutive days. In January 2022, the Spartanburg City Council approved on first reading a change to the City's Zoning Ordinance that would prohibit Airbnb rentals in residential neighborhoods, while they would remain legal in areas such as downtown and the commercial corridors. In essence, this means that vacation rentals would be treated in the same way as hotels and motels.
However, these changes are not officially reflected in the City's Code of Ordinances. Thus, it's not fully clear whether Spartanburg, SC short-term rentals are entirely legal and unrestricted throughout the city.
Similar to the rest of the state, Airbnb owners need to have a business license before launching a STR business in Spartanburg.
The Spartanburg County Local Accommodations Tax is equivalent to 3%.
Meanwhile, the beautiful ponds, the fish-filled lakes, the woodland paths, and the other natural wonders make Spartanburg one of the best locations for Airbnb investments in South Carolina. Interested investors are advised to consult with a local real estate attorney to gain a comprehensive understanding of applicable short-term rental laws in order to make not only a profitable but also legal investment.
Following are the numbers illustrating the average performance of the Spartanburg Airbnb market according to data from Summer Forecast:
- Gross Revenue: $24,197
- Daily Rate: $114
- Occupancy Rate: 76%
- Short-Term Rentals: 13
- Listing Price: $260,000
- Active Listings for Sale: 65
6. Sumter, South Carolina short-term rental laws
The City of Sumter does not regulate short-term rentals. Nevertheless, Sumter Airbnb hosts need to obtain a local business license, which is generally valid for one year, and they need to pay taxes.
The amusing outdoor recreation activities and the annual festivals make Sumter, SC a preferred destination for visitors from near and far, which turns it into a top vacation rental market. To be on the safe side, investors should contact a local lawyer to confirm eligibility and can also work with a local broker or property manager to uncover the best opportunities around.
Below, you can see the performance of the Sumter Airbnb market based on Summer Forecast data:
- Gross Revenue: $64,912
- Daily Rate: $491
- Occupancy Rate: 42%
- Short-Term Rentals: 4
- Listing Price: $316,050
- Active Listings for Sale: 46
Do Airbnbs do well in South Carolina?
South Carolina short-term rental laws are generally conducive to an Airbnb business in the state. Currently, vacation rentals are governed by local authorities, so rules vary from unrestricted performance to limits on non-owner occupied STRs in some markets. At the moment, the state government is discussing a bill which might prohibit local governing bodies from preventing vacation rentals except under certain circumstances, so the regulatory climate might become even more favorable to hosts and investors.
Meanwhile, as data from Summer Forecast shows, South Carolina Airbnbs can be very profitable. Individual cities boast above-average daily rates, strong occupancies, and excellent revenues coupled with affordable property prices in some locations.
Ready to get started? Contact one of the best Airbnb property management companies in South Carolina to learn more about investment opportunities there!
Once you're ready to go, remember to check out Summer Forecast, your go-to platform for building a high-performing Airbnb portfolio in South Carolina and anywhere else in the U.S. Our institutional-quality data, easy-to-navigate analytics, and powerful forecasting tools enable you to make smarter, data-backed decisions. Empowered by in-depth data on daily rates, occupancy, revenue, comps, and market trends, you can evaluate new opportunities, maximize profit, and outperform the competition.
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