Overview: Short-Term Rental Status in Gaffney, SC

Short-term rentals ARE currently allowed in Gaffney, SC, but specific local regulations are currently being developed and are not yet finalized. As of mid-2025, the City of Gaffney is actively working on establishing formal zoning ordinances and regulations specifically for short-term rentals and bed & breakfast establishments. Until these regulations are officially adopted, investors must comply with state-level requirements and general municipal business licensing procedures.

How to Start a Short-Term Rental Business in Gaffney

Step 1: Property Zoning Verification

Before investing, confirm your property's zoning allows for short-term rental use. Gaffney's Planning Commission is currently developing specific zoning requirements for STRs, but you should verify current zoning allows lodging or hospitality uses with the Planning Department.

Step 2: Obtain Required Business Licenses

• Business License: Required from the City of Gaffney for any commercial operation
• Tax Registration: Register for state, county, and city tax obligations
• Accommodations Tax License: Annual license required for STR operations

Step 3: Insurance and Safety Compliance

• Secure commercial general liability insurance with minimum $1 million coverage per occurrence (state requirement)
• Ensure property meets all fire safety and health regulations
• Consider comprehensive property and liability coverage

Step 4: Tax Setup and Collection Procedures

• Set up systems to collect and remit required taxes (see tax section below)
• Understand which taxes platforms collect vs. your direct obligations

Step 5: Property Preparation and Operations

• Prepare property for guest occupancy with required safety equipment
• Create house manual with emergency contacts and local information
• Establish guest communication and management protocols

Required Documents, Permits, Licenses, and Guidelines

State-Level Requirements (Mandatory)

• Commercial General Liability Insurance: Minimum $1 million per occurrence coverage
• State Accommodations Tax Registration: 7% combined state tax (5% sales + 2% accommodations)
• Business License: From appropriate local authority

Documents Being Developed by Gaffney

Based on Planning Commission discussions, the following are likely to be required:

Anticipated Application Requirements:

• Business license application
• Site plans showing parking arrangements
• Floor plans indicating occupancy limits
• Proof of ownership or lease agreements
• Emergency contact information and 24/7 availability verification
• Detailed house rules and operational procedures
• Notarized agreement to comply with future regulations

Potential Operational Requirements:

• Neighbor notification procedures with objection opportunities
• Quiet hours and noise control measures
• Maximum length of stay restrictions
• Party and gathering limitations
• Parking compliance verification
• Guest record keeping requirements (likely 2+ years)

County-Level Obligations (Cherokee County)

• Cherokee County accommodations tax (if applicable)
• County business license requirements
• Property tax compliance

Specific Regulations: City, County, and State Level

State of South Carolina Requirements

Insurance Mandate:

• Commercial general liability policy required with minimum $1 million per occurrence coverage
• Recent legislation (Senate Bill S.442) strengthened statewide requirements while preserving local authority

Tax Obligations:

• State accommodations tax: 7% total (5% state sales tax + 2% accommodations tax)
• Local accommodations taxes vary by jurisdiction

Regulatory Framework:

• State delegates STR regulation to local jurisdictions
• Municipalities and counties can impose zoning restrictions, permits, and operational caps

Cherokee County (Unincorporated Areas)

• County accommodations tax applies in addition to state requirements
• Business license required for commercial operations
• Zoning compliance required for lodging uses
• Enforcement through county ordinances and building codes

City of Gaffney (Under Development)

Current Status (2025): The Planning Commission is actively developing comprehensive STR regulations. Key discussion points include:

Zoning Considerations:

• Separation of Bed & Breakfast and Short-Term Rental regulations
• Potential restrictions on residential vs. commercial zones
• Application requirements and approval processes

Operational Standards Being Discussed:

• Business license requirements with associated fees
• Site plan requirements for parking compliance
• Quiet hours and noise regulation enforcement
• Maximum stay duration limitations
• Party and gathering restrictions
• Tax collection and remittance procedures
• Neighbor notification and objection processes
• Penalties for non-compliance including potential license revocation

Enforcement Considerations:

• Monitoring and compliance verification procedures
• Inspector access and property maintenance standards
• Complaint response protocols

Regional Comparison (Adjacent Jurisdictions)

Greenville Requirements:

• Short-term rentals under 30 days allowed only in specific commercial/mixed-use zones
• 30-89 day rentals permitted in some residential zones
• Occupancy permits and business licenses required
• 3% local accommodations tax in addition to state taxes

Spartanburg Restrictions:

• STRs prohibited in all residential zones
• Allowed only in commercial zones, downtown, or mixed-use areas
• Business license mandatory with strict zoning compliance
• Active enforcement including fines and cease-and-desist orders

Contact Information for Local Authority

City of Gaffney Planning Department

Primary Contact for STR Regulations:

• Phone: (864) 487-8515
• Address: City of Gaffney Planning Department, 505 S. Limestone Street, Gaffney, SC 29340
• Website: www.cityofgaffney-sc.gov
• Staff Contacts:
  • Alison Hall, Zoning Administrator
  • Ashley Munsterman, Planning Department
  • Sarah Shiflett, City Attorney (legal compliance questions)

Cherokee County Government

For County-Level Requirements:

• Phone: (864) 487-2651
• Address: 1106 Oakwood Street, Gaffney, SC 29341
• Website: cherokeecountysc.gov

South Carolina Department of Revenue

For State Tax Registration:

• Phone: 1-844-898-8542
• Website: dor.sc.gov
• Online Portal: Available for business and tax registration

Planning Commission

For Zoning Ordinance Updates:

• Meeting Schedule: Typically second Tuesday of each month, 5:30 PM
• Location: City Council Chambers, 505 S. Limestone Street, Gaffney, SC
• Public Comment Period: Available during monthly meetings

Links to Source Pages

Primary Municipal Sources:

• City of Gaffney Official Website: www.cityofgaffney-sc.gov/
  • Planning Commission Minutes: www.cityofgaffney-sc.gov/AgendaCenter/
  • March 11, 2025 Minutes: www.cityofgaffney-sc.gov/AgendaCenter/ViewFile/Minutes/_03112025-148
  • June 10, 2025 Minutes: www.cityofgaffney-sc.gov/AgendaCenter/ViewFile/Minutes/_06102025-161

Regional Reference Materials:

• Century 21 Blackwell STR Guide: www.century21blackwell.com/blog/short-term-rentals-greenville-spartanburg-whats-legal-and-whats-not/
• RedAwning Gaffney Market Overview: www.redawning.com/pm/market-overview/gaffney-south-carolina
• RedAwning South Carolina Market Insights: www.redawning.com/pm/market-insights/south-carolina

State Resources:

• South Carolina Department of Revenue: dor.sc.gov
• South Carolina Legislature (Senate Bill S.442): Available through sc legislature.gov

Investment Strategy Recommendations

Given Gaffney's developing regulatory environment, consider these approaches:

Near-Term Strategy (2025-2026)

1. Monitor Regulatory Development: Attend Planning Commission meetings and track ordinance development
2. Prepare Comprehensive Applications: Gather documentation in advance of final regulations
3. Secure Prime Locations: Focus on properties in commercially zoned areas likely to be STR-permitted
4. Build Relationship with Officials: Establish communication with Planning Department staff

Long-Term Considerations

1. Regulatory Compliance Infrastructure: Develop systems for tax collection, guest management, and compliance tracking
2. Insurance and Safety Standards: Exceed minimum requirements to future-proof operations
3. Community Integration: Prepare neighbor notification and complaint resolution procedures
4. Financial Planning: Account for regulatory compliance costs, fees, and potential operational restrictions

Risk Mitigation

• Legal Consultation: Engage local attorney familiar with municipal regulations
• Flexible Business Model: Structure operations to adapt to various regulatory outcomes
• Compliance Documentation: Maintain detailed records of all licensing, insurance, and operational procedures
• Professional Management: Consider professional property management for regulatory compliance and operations

Important Note: This guide reflects the regulatory landscape as of mid-2025. Gaffney's STR regulations are actively being developed, and final requirements may differ significantly from current discussions. Investors should regularly check for updates from the Planning Commission and be prepared to adapt operations as regulations are finalized and implemented.