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.

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

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

Property Documentation

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

Operational Documents

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

Tax and Business Records

13. South Carolina Retail License (for state tax collection)
14. Charleston County Business License (county registration)
15. 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

• Isle of Palms Short-Term Rental Information
• City Code of Ordinances - Short-Term Rentals
• 2025 Short-Term Rental License Application
• Fire Safety Acknowledgment Form
• STR Fee Schedule
• Isle of Palms Rental Revenue Document
• STR Analysis Report
• Short-Term Rental Parking Permits

Third-Party Analysis and Resources

• Understanding Short-Term Rental Regulations in Isle of Palms, SC
• Isle of Palms SC Short Term Rental Regulations: The Beach Investor's Complete Roadmap
• The Charleston Short Term Rental Guide

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.