Folly Beach, South Carolina Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Folly Beach?

Yes, short-term rentals are allowed in Folly Beach, SC, but they are heavily regulated. The city has implemented a comprehensive licensing system with strict caps and requirements. As of current regulations, Folly Beach allows short-term rentals through a capped licensing system that limits the total number of investor short-term rental (ISTR) licenses to 800 properties. The cap is currently maxed out, meaning new ISTR licenses are only available through inheritance or medical hardship exceptions.

What do Airbnb hosts actually earn in Folly Beach?

Folly Beach hosts earn a median $104,393/year with $527 ADR and 72% occupancy.

Top performers pull in $153,288+ per year.

See the full Folly Beach market breakdown

How to Start a Short-Term Rental Business in Folly Beach

License Types Available

Folly Beach issues four distinct types of rental licenses:

1. Long Term Rental (LTR) License

For properties rented 30+ days at a time
Does not allow any rentals less than 30 days
Available to any property owner
Starting cost: $45 (covers $2,000 income) + $2.75 per additional $1,000

2. Owner Occupied Short Term Rental (OSTR) License

For properties with 4% property tax rate
Allows rentals 29 days or less
Mixed rentals allowed (both short and long-term)
Important: Owner-occupied properties rented more than 72 days in a calendar year may lose 4% property tax status
Starting cost: $245 (covers $2,000 income) + $2.75 per additional $1,000

3. Investor Short-Term Rental (ISTR) License

For properties with 6% property tax rate
Allows rentals 29 days or less
Mixed rentals allowed
No limit on total nights rented
Currently unavailable due to 800-license cap
Starting cost: $245 (covers $2,000 income) + $2.75 per additional $1,000

4. Provisional Short-Term Rental License (PSTR)

Temporary 90-day license for new owners
Allows compliance with SC Vacation Rental Act
Only for properties with existing valid ISTR or OSTR licenses
Valid only for pre-booked rentals made before closing
Expires at the end of the last authorized rental period

Step-by-Step Application Process

Determine Property Eligibility
- Verify property tax status (4% for owner-occupied, 6% for investor)
- Confirm license availability (ISTR licenses are currently capped)
Gather Required Documents
- Charleston County Property Records (proof of ownership + bedroom count)
- 2024 Accommodation Tax payment proof
- Proof of minimum 28-night stays with confirmation numbers and payment proof
- Date of last septic inspection
- 2024 gross revenue documentation
Submit Application
- Email applications to renewals@follybeach.gov
- Or visit City Hall Monday-Friday, 1:00PM-5:00PM
Pay Associated Fees
- Business license fee (based on income)
- Rental registration permit: $17.50 per $1,000 of reported income
- Additional taxes (see tax requirements below)

Required Documents, Permits, Licenses, and Guidelines

Essential Documents

Charleston County Property Records showing ownership and bedroom count
Proof of 2024 Accommodation Tax payments
Confirmation numbers and proof of payment for minimum 28-night stays
Last septic inspection date
2024 calendar year gross revenue

Required Permits and Licenses

Business License (varies by type and income)
Rental Registration Permit (OSTR and ISTR only)
Accommodation Tax Registration (state requirement)

Tax Requirements

State Sales and Accommodations Taxes (contact SC Department of Revenue)
Local Accommodation Taxes (contact Charleston County)
Property Tax Compliance (4% or 6% rate maintenance)

Operational Guidelines

Properties must be rented minimum 28 days per year to maintain license
No license transfers allowed
Advertising more bedrooms than approved is a violation
All rental nights count toward property tax status limits

Specific Regulations: City, County, and State

City of Folly Beach Regulations

License Cap: 800 maximum ISTR licenses (currently reached)
No License Transfers: All new owners must reapply
Minimum Rental Requirement: 28 nights per year
License Types: LTR, OSTR, ISTR, PSTR (as detailed above)
Renewal Deadline: April 30 annually
Registration Renewal: June 1 annually

Charleston County Regulations

Property Tax Assessment: 4% for primary residences, 6% for investment properties
72-Day Rule: Owner-occupied properties rented >72 days may lose 4% tax status
Accommodation Tax: Local tax collection and reporting

South Carolina State Regulations

SC Vacation Rental Act: Requires temporary licensing for ownership transitions
Sales and Accommodations Taxes: State-level tax obligations
Minimum Rental Compliance: State-mandated temporary licensing provisions

Contact Information for Local Authorities

City of Folly Beach

General Licenses & Business License Questions

Email: licenses@follybeach.gov
Phone: (843) 513-1830 ext. 1866
Hours: Weekdays 1:00PM-5:00PM
Location: City Hall, weekdays 1:00PM-5:00PM

License Renewals

Email: renewals@follybeach.gov
Phone: (843) 588-2447 ext. 1866
Hours: Weekdays 1:00PM-5:00PM
Location: City Hall, Monday-Friday 1:00PM-5:00PM

Business License Specialist

Contact: Stacee Freeman
Email: sfreeman@follybeach.gov
Phone: (843) 588-7017

STR Verification (for visitors)

Phone: (843) 588-7017
Email: licenses@follybeach.gov

City of Folly Beach Main

Phone: (843) 588-2447
Address: PO Box 4821, Center St, Folly Beach, SC 29439
Non-Emergency: (843) 588-2433
Emergency: 911

Charleston County

Accommodation Tax Questions

Contact: Britt Miller
Email: bmiller@charlestoncounty.org
Phone: (843) 202-6095

Property Tax Assessment

Contact: Charleston County Assessor's Office
Phone: (843) 958-4100

South Carolina State

Sales and Accommodations Taxes

Phone: (844) 898-8542 Option 6 (toll-free)
Phone: (803) 898-5000 (local)

Links to Source Pages

City of Folly Beach Short-Term Rental Information: cityoffollybeach.com/short-term-rental
City of Folly Beach STR Verification: cityoffollybeach.com/short-term-rentals
Live 5 News STR Ordinance Report: www.live5news.com/2024/02/20/second-reading-folly-beach-short-term-rental-ordinance-lead-new-changes/
Smith Spencer Real Estate Analysis: smithspencer.com/folly-beach-short-term-rental-rules/
Charleston County Property Tax Application: www.charlestoncounty.org/files/forms/tax/LegalRes4.pdf?430
STR Concerns/Complaints Portal: complaints-str.deckard.com/follybeach-sc-str-complaints

Important Note for Investors: Due to the current 800-license cap being reached, new ISTR licenses are unavailable except through inheritance or medical hardship. Prospective investors should consider Long-Term Rental (LTR) licenses or properties in nearby municipalities with more permissive STR regulations. The city continues to enforce strict compliance measures, and violations can result in license suspension or revocation.

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Ask the AI Advisor about Folly Beach

Folly Beach is a small, laid-back barrier-island town in Charleston County, South Carolina, with a year-round population of roughly 2,500 residents that swells considerably during the summer months. Known affectionately as the "Edge of America," the town carries a casual, surf-oriented character that distinguishes it from the more polished resort islands to the south. It is best recognized for its wide beaches, the long fishing pier, and a downtown strip of low-key restaurants and surf shops, and it serves as one of the most accessible beach getaways for visitors to the Charleston area. Folly Beach sits just southwest of Charleston, approximately 11 miles from the historic downtown, an easy drive of about 20 to 25 minutes over the causeways connecting the island to the mainland.

A trip to Folly Beach pairs naturally with a visit to the Morris Island Lighthouse, a striking black-and-white striped tower that has stood in the surf just offshore since the mid-1800s. Once used to guide ships into Charleston Harbor, the lighthouse is no longer accessible on foot, but it remains a popular subject for photographers and can be admired from Folly Beach County Park, near the south end of the island, after only a short drive from the center of town.

Just across the marshes to the northeast lies the Charleston Historic District, one of the most celebrated old town centers in the American South. Within roughly a 20-minute drive, guests can wander cobblestone streets lined with preserved antebellum homes, browse the open-air Charleston City Market, and dine at the many restaurants that have made the city a culinary destination. The district's blend of waterfront parks, horse-drawn carriage tours, and Civil War-era landmarks makes it an easy day trip from any Folly Beach rental.

A short drive inland on nearby Johns Island brings visitors to the Angel Oak Tree, a massive live oak estimated to be several centuries old and one of the largest of its kind in the country. Its sprawling, low-hanging limbs and quiet park setting offer a peaceful counterpoint to the beach and a reminder of the Lowcountry's natural heritage.

Folly Beach offers short-term rental owners a particularly compelling combination: a relaxed, walkable beach community with genuine small-town personality, immediate access to a wide Atlantic shoreline, and proximity to one of the South's most visited historic cities. Guests can spend mornings surfing or fishing from the pier, afternoons exploring Charleston's gardens and museums, and evenings back on the island watching the sunset over Morris Island, all within the span of a single stay. That blend of beachfront leisure and urban day-trip appeal gives Folly Beach a year-round draw that few Lowcountry destinations can match.