Overview: Are Short-Term Rentals Allowed in Charleston, SC?

Yes, short-term rentals are explicitly allowed in Charleston, SC under specific regulations that have been in effect since 2018. The city has established a comprehensive framework that distinguishes between two primary types of short-term rentals: residential short-term rentals (where the owner resides on the property) and commercial short-term rentals (entire property conversions in commercially zoned areas). The city has divided properties into three main categories based on location and zoning, each with distinct requirements and limitations. Short-term rentals are defined as providing sleeping accommodations for periods of 1-29 consecutive days.

How to Start a Short-Term Rental Business in Charleston

Step 1: Property Eligibility Assessment

Before investing in a Charleston property for short-term rental purposes, you must first determine the property's eligibility based on its zoning and location:

Category I Properties:

• Individually listed on the National Register of Historic Places
• Located within the city's Old and Historic District
• Subject to the most restrictive regulations

Category II Properties:

• Located on the Charleston peninsula but outside the Short-Term Rental Overlay Zone
• More limited than Category III but less restrictive than Category I

Category III Properties:

• All other properties within Charleston city limits
• Includes incorporated areas of West Ashley, James Island, Johns Island, Cainhoy, and Daniel Island
• Generally the most permissive category for STR operations

STR Overlay Zone:

• Located in the Cannonborough-Elliotborough area
• Commercially zoned properties within this district are eligible for commercial short-term rental permits
• Offers the most flexibility for investment-focused operations

Step 2: Determine Your Rental Model

Residential Short-Term Rental Model:

• Property owner must reside on the premises
• Maximum of four people aged 18 or older per rental period
• Only one STR unit permitted per residential property
• Must be the owner's primary residence (verified through 4% Legal Residence tax exemption)
• STR must be an accessory unit (main house cannot be rented short-term)

Commercial Short-Term Rental Model:

• Entire property conversion with full facilities (cooking, living, sanitary, and sleeping)
• Must be located in commercially zoned areas
• Can be owned by LLCs
• More suitable for investment properties

Step 3: Application Process

Timeline:

• Application submission to Zoning Administrator
• 15-day public notice period on property
• Additional 5 business days for appeals
• Total processing time: approximately 20 business days

Requirements:

• Owner must be "generally available" during guest stays (not necessarily present for entire duration)
• Annual permit renewal required within the original issuance month
• Property must comply with all life safety requirements

Required Documents, Permits, Licenses, and Guidelines

Mandatory Permits

Residential Short-Term Rental Permit:

• Floor plans drawn to scale
• Site plan
• Photographs of the structure
• Signed statement from property owner
• Property verification as primary residence

Commercial Short-Term Rental Permit:

• Application for commercial vacation rentals
• Documentation proving commercial zoning compliance
• All residential permit requirements plus commercial-specific documentation

Business License

Requirement: All short-term rentals must obtain a Charleston business license Duration: Business licenses expire December 31 annually Renewal: Required every year with full reapplication process

Insurance Requirements

Minimum Coverage: General liability insurance policy with minimum $1 million per occurrence limits Provider Requirements: Must be with a company authorized to do business in South Carolina Coverage: Must insure against personal injury including death and property damage

Life Safety and Fire Inspection Requirements

Mandatory Safety Equipment:

• Working smoke alarms in all applicable areas
• Carbon monoxide detectors where required
• Operable window or door from each bedroom (egress requirement)
• Fire extinguishers (properly maintained and accessible)
• Visible address numbers on property
• No visible electrical hazards

Additional Documentation

Guest Register: Maintain records including:

• Guest names, addresses, and telephone numbers
• Dates of occupancy
• Must be available for inspection upon request

Tax Compliance: Registration for all applicable taxes (detailed in tax section below)

Specific Regulations for Short-Term Rentals

Zoning and Location Restrictions

Downtown Charleston Peninsula:

• Only one STR unit permitted per residential property
• Must be accessory unit (main house cannot be rented short-term)
• Owner must declare property as primary residence
• Owner must be physically present near property when guests are present
• Minimum one off-street parking space exclusively designated for rental tenants
• No physical signage advertising STR use permitted
• Online advertising allowed with valid permit

Southern Peninsula Requirements:

• Maximum one STR unit per property
• One off-street parking spot required
• Must be existing structure or accessory building listed on National Historical Registry
• One-year holding period for properties previously occupied by long-term tenants

Upper Peninsula Requirements:

• Maximum one STR unit per property
• One off-street parking spot required
• Building must be more than 50 years old

STR Overlay Zone:

• Eligible for bed & breakfast or commercial STR operations
• One off-street parking spot required
• Building must be more than 50 years old

Parking Regulations

General Requirements:

• Minimum one off-street parking space exclusively for STR tenants
• Tandem parking allowed only if one space remains exclusively for tenant use
• Street parking by overnight guests prohibited in some jurisdictions (specifically North Charleston)

Specific Limits:

• North Charleston: Maximum 4 parking spaces per dwelling
• Mount Pleasant: Parking requirements vary by rental frequency

Operational Restrictions

Event Prohibitions:

• North Charleston: Hosting events such as weddings, parties, or similar gatherings prohibited

Occupancy Limits:

• North Charleston: Maximum 2 persons per bedroom, 8 persons total (including children)

Property Modifications:

• Only interior alterations permitted for STR conversion
• Exterior modifications prohibited to maintain historic integrity

Permit Transferability

Ownership Changes: Permits do not transfer to new property owners Requirement: New owners must reapply for permits

Tax Requirements and Financial Obligations

State-Level Taxes

• State Sales Tax: 5%
• State Accommodations Tax: 2%

Local and Regional Taxes

• Local Option Sales Tax: 1%
• County Transportation Tax: 1%
• School District/Education Tax: 1%
• Charleston County Accommodation Tax: 2%
• City of Charleston Accommodations Tax: 2%

Tax Implications for Investment Properties

Mount Pleasant Specific:

• Rentals 24-72 nights per year: Residential tax rate (4%), $250 application fee
• Rentals over 72 nights per year: Commercial tax rate (approximately triple residential rate), $1,500 application fee

Regional Variations Beyond Charleston City Limits

Charleston County (Unincorporated Areas)

Limited Home Rental:

• Primary residence STR
• Maximum 72 days per calendar year

Extended Home Rental:

• Investment property STR
• Maximum 144 days per calendar year
• Requires special exception from County Zoning

Commercial Guest House:

• Located in commercially zoned districts
• More flexible operational parameters

Beach Communities

Generally Permissive (Business License Required):

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

Prohibited:

• Sullivan's Island: Openly prohibits short-term rentals under 30 days (grandfathered pre-2002 rentals excepted)

Other Municipalities

Mount Pleasant:

• 400 permits currently capped with wait list
• Not allowed in multifamily dwellings or Old Village area

North Charleston:

• No specific STR ordinance currently enforced
• General business license and safety requirements apply

Hanahan and Summerville:

• No current restrictions
• Municipalities retain right to deny business permits

Contact Information for Local Authority

Primary Contact:

• Phone: (843) 724-7311
• Address: 80 Broad Street, Charleston, South Carolina 29401-0304
• Website: www.charleston-sc.gov
• Department: Planning, Preservation & Sustainability

Online Resources:

• Permit Applications: Available through city's online permitting system
• Application Materials: www.charleston-sc.gov/1871/Application-Materials
• Short-Term Rental Information: www.charleston-sc.gov/1840/Short-Term-Rental-Permit-Information

Direct Department Contacts:

• Zoning Administrator: For permit approval questions
• Planning Department: For zoning and compliance questions
• Business License Department: For business license requirements
• Fire Department: For life safety inspection requirements

Source Links

1. Charleston STR Ordinance Main Page: www.charleston-sc.gov/2529/Short-Term-Rental-Ordinance
2. Charleston STR Permit Information: www.charleston-sc.gov/1840/Short-Term-Rental-Permit-Information
3. Approved STR Ordinance (PDF): www.charleston-sc.gov/DocumentCenter/View/18216
4. STR Regulations Map - City Wide (PDF): www.charleston-sc.gov/DocumentCenter/View/18055
5. STR Regulations Map - Peninsula (PDF): www.charleston-sc.gov/DocumentCenter/View/18056
6. Application Materials: www.charleston-sc.gov/1871/Application-Materials
7. Property Eligibility: www.charleston-sc.gov/2314/Property-Eligibility
8. Category Criteria: www.charleston-sc.gov/2316/Category-Criteria
9. STR Enforcement Information: www.charleston-sc.gov/1846/Short-Term-Rental-Enforcement
10. Charleston STR FAQs: www.charleston-sc.gov/2317/FAQs

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This comprehensive guide provides investors with the complete regulatory landscape for short-term rentals in Charleston, SC. The city's framework is complex but navigable, with clear pathways for both primary residence owners seeking supplemental income and commercial investors. Success inCharleston's short-term rental market requires thorough understanding of these regulations, proper documentation, and strict compliance with ongoing operational requirements.