Isle Of Palms, South Carolina Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Isle of Palms?

YES – Short-term rentals are explicitly allowed in Isle of Palms, SC. The city maintains a pro-business stance toward vacation rentals and has no cap on the number of STR permits issued. In November 2023, residents decisively rejected a proposed cap on short-term rentals by a 54% margin, demonstrating the community's commitment to preserving property rights and maintaining a robust rental market.

All property owners who rent residential units (houses, condos, apartments, hotel rooms) for any length of time must obtain an Isle of Palms short-term rental business license from the Building, Planning, and Zoning Department.

What do Airbnb hosts actually earn in Isle Of Palms?

Isle Of Palms hosts earn a median $100,749/year with $548 ADR and 70% occupancy.

Top performers pull in $150,841+ per year.

See the full Isle Of Palms market breakdown

How to Start a Short-Term Rental Business in Isle of Palms

Step 1: Market Research & Property Selection

Analyze rental demand and seasonal patterns across different areas of the island
Consider proximity to beach access, Wild Dunes amenities, and island attractions
Evaluate property types for optimal bedroom count and target market appeal
Research existing rental properties and pricing strategies

Step 2: Zoning and Community Verification

Confirm property is in an STR-permitted zone (most residential zones allow STRs)
Review any HOA or community association rental policies
If in Wild Dunes PRD zone, understand additional architectural requirements
Consider planned developments or zoning changes

Step 3: Property Acquisition and Preparation

Secure property ownership or written owner authorization
Create beach-themed, high-quality accommodations with strong rental appeal
Ensure all fire safety and building code requirements are met
Add value-driving amenities like updated kitchens, outdoor spaces, and beach equipment

Step 4: Licensing and Registration

Contact Building Department: 843-886-9912 or email Jeanne Garrett
Submit comprehensive STR license application with required documentation
Complete Fire Safety Acknowledgment Form
Establish systems for tracking and reporting rental revenue

Step 5: Tax Registration and Compliance

Register with SC Department of Revenue for tax collection
Obtain Charleston County business license
Set up processes for collecting and remitting all applicable taxes
Establish comprehensive record-keeping for tax compliance

Step 6: Operational Setup

Develop compelling listings highlighting beach access and island amenities
Designate and train responsive local representative (must be on-site within 1 hour)
Create comprehensive house rules and welcome information
Establish cleaning and maintenance schedules

Required Documents, Permits, Licenses, and Guidelines

Core Licensing Documents

Short-Term Rental Business License (annual requirement, May 1 - April 30)
Fire Safety Acknowledgment Form (required for new licenses and renewals)
Isle of Palms Rental Revenue Document with end-of-year statements from all booking platforms
Owner Representative Contact Information (24/7 availability required)

Property Documentation

Property Ownership Proof (current deed)
Floor Plans (detailed drawings showing bedroom count and bed arrangements)
Parking Plan (scaled drawing showing all available parking spaces)
Property Tax Records (current payment status)

Operational Documents

Posted City Notice (mandatory placard displaying maximum occupancy and key regulations)
Guest Information (house rules and emergency contact information)
Insurance Documentation (liability coverage records)
HOA/Community Documentation (if applicable)

Tax and Business Records

South Carolina Retail License (for state tax collection)
Charleston County Business License (county registration)
Revenue Records (comprehensive rental income documentation for license renewal)

Fee Structure

Base Fee: $450 for first $2,000 gross income
Additional Fee: $4.60 per $1,000 of gross income above $2,000
Payment Deadline: April 30th (late payments subject to penalties)

Specific Regulations for Short-Term Rentals

City of Isle of Palms Regulations

Maximum Overnight Occupancy

Standard formula: two people per bedroom plus two additional people
Maximum occupancy: 12 people (excluding children under age 2)
City provides written notice for each property's specific maximum

Maximum Occupancy at Any Time

Total persons cannot exceed twice the overnight occupancy or 40 persons, whichever is less
Includes all children

Vehicle Limitations (11:00 PM - 9:00 AM)

Maximum vehicles: greater of one vehicle per bedroom OR one vehicle per 2.5 people under maximum overnight occupancy
Minimum: two vehicles always allowed

Single-Family Home Requirements

Rental units must be offered in their entirety
Cannot offer private rooms or shared rooms within single-family homes
Violates single-family zoning and building code provisions

Parking Permits

Up to 4 portable parking permits per calendar year
Cost: $15.00 each
Allows guest parking in Resident Parking District (9:00 AM - 6:00 PM) when no adequate off-street parking available

Owner Representative Requirements

Must provide 24/7 telephone number
Representative must be on-site within one hour of complaint

Zoning Districts Permitting STRs

SR-1, SR-2, SR-3 Single Family Residential
LC Limited Commercial
GC-1 and GC-2 General Commercial
PRD Planned Residential District (Wild Dunes area)

Charleston County Regulations

No specific county-level STR restrictions beyond licensing requirements
Properties assessed at 6% of fair market value if not primary residence (SC Code 12-43-220)
Personal property used to furnish rentals must be reported for tax valuation annually (January 1 - April 30)

State of South Carolina Regulations

Rentals for 30 days or less require collection and remittance of various taxes
State law requires annual report of valuation for personal property used in rentals
SC Department of Revenue oversight for state tax collection

Tax Obligations (Total 14% of Gross Rental Receipts)

State Level Taxes

State Sales Tax: 5%
State Accommodations Tax: 2%
Local Option Sales Tax: 1%
Charleston County Transportation Tax: 1%
Charleston County School Tax: 1%

County and Local Taxes

County of Charleston Accommodations Tax: 2%
City of Isle of Palms Accommodations Tax: 1%
City of Isle of Palms Beach Preservation Fee: 1%

Note: While platforms like Airbnb and VRBO collect state sales and accommodations taxes, property owners remain responsible for all local and county taxes.

Enforcement and Penalties

License Revocation Triggers:

Engaging in or allowing unlawful activities or nuisances
Demonstrating inability to prevent tenant violations
Five or more founded police complaints in a single calendar year

General Penalty: Misdemeanor with fine up to $500 and/or imprisonment up to 30 days per violation

Progressive Enforcement: City prioritizes education and compliance before resorting to revocation

Contact Information

City of Isle of Palms

Short-Term Rental Coordinator

Name: Jeanne Garrett
Phone: 843-886-9912
Email: jgarrett@iop.net
Address: City Hall, 1207 Palm Boulevard, Isle of Palms, SC 29451
Website: www.iop.net
Hours: Monday-Friday 8:00 AM - 5:00 PM

Charleston County

Charleston County Business License/User Fee Department

Contact: Britt Miller, Revenue Collections
Phone: 843-202-6080
Email: bmiller@charlestoncounty.org

State of South Carolina

Department of Revenue Charleston District Office

Phone: 843-852-3600
Website: www.sctax.org

Charleston County Auditor (Property Tax Questions)

Address: 101 Meeting Street, Charleston
Phone: 843-958-4000
Website: www.charlestoncounty.org

Links to Source Pages

Official City Sources

Third-Party Analysis and Resources

Disclaimer: This guide is for informational purposes only and not legal advice. Regulations may have changed since publication. Always verify current requirements with local authorities and consult legal professionals before making investment decisions.

Isle of Palms stands out as one of the most business-friendly beach communities in the Charleston area for short-term rental investments, offering no permit caps, reasonable fee structures, and strong community support for property rights. The regulatory framework rewards professional operators who maintain quality standards and responsive community relations with exceptional rental income potential and long-term investment stability.

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Ask the AI Advisor about Isle Of Palms

Isle of Palms is a small barrier-island city on the South Carolina coast, situated in Charleston County just off the mainland community of Mount Pleasant. With a year-round population of roughly 4,500 residents, the island has the laid-back feel of a classic Atlantic beach town while remaining closely tied to the much larger Charleston metropolitan area. It is best known for its wide, sandy shoreline, relaxed residential streets, and its role as a popular beach getaway for visitors exploring the Lowcountry. Downtown Charleston lies only about 12 miles to the southwest across the harbor, making the island a natural place to stay while still being close to one of the most visited historic cities in the Southeast.

The island's main draw is its namesake beach, a broad stretch of soft sand facing the Atlantic that draws families, swimmers, and surfers throughout the warmer months. The public beach access points and adjacent oceanfront county park are a short drive from nearly every part of the island, and the boardwalk area near the pier is a gathering spot for visitors in the evenings. Just to the south, connected by a short bridge, lies Sullivan's Island, a quieter neighboring island known for its small-town atmosphere and historic Fort Moultrie, a coastal defense site that has stood in various forms since the Revolutionary War and is now part of the National Park Service (Fort Moultrie National Monument). The drive between the two islands typically takes only a few minutes.

Across the Cooper River and the harbor inlet, Charleston's historic downtown offers a dense concentration of antebellum architecture, cobblestone streets, famous restaurants, and the waterfront City Market. One of the most visited landmarks in the harbor is Fort Sumter National Monument, the Civil War-era fort where the first shots of the conflict were fired, which is reachable by a short ferry ride from nearby Patriots Point (Fort Sumter National Monument). The drive from Isle of Palms into the heart of downtown Charleston generally takes around 25 to 35 minutes depending on traffic and bridge conditions.

On the mainland side, the adjacent town of Mount Pleasant provides convenient shopping, dining, and the popular Shem Creek waterfront, known for its shrimp boats, kayaking, and sunset views over the marsh. A short drive to the north on U.S. Highway 17 brings visitors to Boone Hall Plantation, one of the oldest working plantations in the area and a frequent stop for those interested in Lowcountry history and the famous Avenue of Oaks.

For short-term rental owners, Isle of Palms offers a compelling combination: a genuine beachfront setting, a small and well-defined community, and quick access to the cultural, culinary, and historical attractions of Charleston. This balance of beach relaxation and urban exploration tends to support steady demand from families, couples, and groups looking to experience both sides of the South Carolina coast in a single trip.