The Charleston Short Term Rental Guide

Charleston has become a destination city for all the right reasons, and as such there is a market for purchasing various short term rental properties that provide any number of experiences for the traveler – from boutique hotels, beach houses, in-town villas, to entire residential homes.

For those looking to own a property that can be used as a short term rental in Charleston, first think about the experience you wish to provide...


An authentic historic experience? A sandy beach getaway? A more rustic excursion?

Regardless, one must be able to navigate the various ordinances imposed by municipalities and homeowners associations, in addition to the desirability of the property on the rental market.


So the primary question for you is...


Do you intend to live on the property, and utilize one part of it as a rental?

or

Do you intend to invest in a whole property as a short term rental?


‘Full Income’ Charleston Short Term Rentals

For the real estate investor looking to capitalize on this market, awareness of municipal laws, homeowners association rules, and political motivation for future ordinances is just as important as estimating a balance sheet. 


“Full income short term rentals” refer to properties where the owners primary motivation is for rental income, rather than supplemental income from a primary residence.


The municipal regulations for investment short term rentals tend to be much more strict than those for residential rentals, and research is required to determine permit eligibility.

Historic Downtown Charleston

As the oldest city in South Carolina, historic Charleston has a huge hospitality presence – lots of hotels, coupled with a number of historic homes that can be rented short term. 

The Beaches

Generally the rules are fairly open to short term rentals on the beach – you’ll just need a business license through the municipality of each of the following:

  • Isle of Palms
  • Folly Beach
  • Kiawah Island
  • Seabrook Island


Each town has a few other ordinances to abide by so make sure you're up to date with the current regulations.


Sullivan’s Island is the exception.

The town of Sullivan’s Island openly prohibits short term rentals. Any rentals less than 30 days are not legal. You may notice a handful of property owners that do still operate vacation rentals, but this is because they are grandfathered in from before the ordinance was set in 2002.

Outside the City

Outside the city of Charleston there is a number of options are available in municipalities that may be less restrictive, such as:

  • North Charleston
  • Hanahan
  • West Ashley
  • James Island
  • Mount Pleasant


These housing communities present affordable market opportunities for operating a short term rental - for both the owner and the renter. Typically these are  entire homes offering plenty of space and a location close to historic downtown Charleston.

‘Supplemental’ Charleston Short Term Rentals

For the homeowner looking to generate rental income from their primary residence, municipal ordinances vary widely, though they tend to be more flexible than those for investment properties. 


In some areas only an accessory unit (ADU for short) may be permitted, while other areas allow the entire home. 


“Supplemental” short term rentals refer to properties the owner has declared as a primary residence and generates income through rentals on all or part of the property.


We often see these rentals as accessory structures to the home: an apartment adjacent to the main home, a room above the garage, or a mother-in-law suite.

 

In many areas outside of downtown, it is permitted to short term rent the entire home.

Downtown Charleston

To obtain a short term rental permit for a residential property on the Charleston peninsula,

the owner must first abide by the following rules:


  • there may be only one short term rental unit on any residential property
  • the short term rental must be an accessory unit – the main house cannot be rented short term
  • the owner must declare the property as their primary residence
  • the owner must be physically present near the property when tenants are present
  • there must be at least one off-street parking space exclusively designated for the rental tenant

Next, there are three zones on the peninsula to consider when selecting the property:

Southern Peninsula

  • It cannot contain more than 1 STR unit.
  • It must have 1 off street parking spot.
  • It must be an existing structure or an accessory building listed on the National Historical Registry.
  • There is a one year holding period for any unit that has been occupied by a long term tenant to discourage renter displacement.

Upper Peninsula

  • It cannot contain more than 1 STR unit.
  • It must have 1 off street parking spot.
  • It must be located in a building built more than 50 years ago.

STR Overlay

  • Eligible for bed & breakfast or a commercial STR.
  • It must have 1 off street parking spot.
  • It must be located in a building built more than 50 years ago.

Outside the City

Click on the tabs below to learn more about each municipality of the greater Charleston area:

City of Charleston (Outside the Peninsula)

Homeowners can generally operate a short term rental with an accessory structure without much issue – in the ordinance this is described as Category 3. Within the City of Charleston (parts of West Ashley and James Island, and Daniel Island) the rules above still apply, however the historic requirements do not apply. A homeowner can build a brand new accessory structure for short term renting and still obtain a permit.

Charleston County

In unincorporated areas of Charleston County – which include some areas of West Ashley and James Island and most of Johns Island and other rural areas – a permit is required along with three zoning categories:


  • Limited Home Rental – short term rental of a primary residence – maximum of 72 days in a calendar year.
  • Extended Home Rental – short term rental of an investment property – maximum of 144 days in a calendar year. This requires a special exception from County Zoning.
  • Commercial Guest House – short term rental in commercially zoned districts.

North Charleston

There are currently a few regulations when applying and maintaining a STR in North Charleston. The regulations are as followed:


  • The number of STR guests shall not exceed over two persons per bedroom, and up to 8 persons (including children) maximum.
  • A minimum of one off-street parking spot for each two bedrooms rented. With a maximum of four spaces per dwelling.
  • Parking on the street by an overnight guest or property owner is prohibited.
  • Only one STR per parcel.
  • Hostings of events such as weddings, parties, or similar events are prohibited.

Mount Pleasant

 The number of permits granted is currently capped at 400 and there is a current wait list. They are not allowed in multifamily dwellings, or anywhere in the Old Village. 


  • For rentals between 24 - 72 nights per year, there is a $250 application fee and the property will be taxed at the residential tax rate of 4%.
  • For rentals over 72 nights per year, there is a $1500 application fee and the property will be taxed at the commercial tax rate of 6% (note: this rate actually ends up being about triple the residential rate of 4%).

Hanahan

At the moment, there appear to be no restrictions, though the town retains the right to deny business permits.

Summerville

At the moment, there appear to be no restrictions, though the town retains the right to deny business permits.

Ultimately, it’s complicated, restrictive, and the market for these homes is extremely tight. This guide is only meant to serve as an overview of the regulations in the area. When ready to pursue the next steps, reach out directly so we can create a specific plan customized for you!