Overview: Are Short-Term Rentals Allowed?

Yes—explicitly. Under South Carolina law, short-term rentals are allowed and cannot be prohibited or “effectively prohibited” by local jurisdictions (including counties, municipalities, and other political subdivisions) within their boundaries. However, local governments may regulate short-term rentals for public health and safety, and may require registration. Lake Marion is a reservoir straddling multiple jurisdictions; with no identified city- or county-specific short-term rental ordinances in the provided materials, the state-level rules below govern operations for properties around the lake. Source: South Carolina General Assembly Bill S.953 (2024) [6-1-2110].

How to Start a Short-Term Rental Business in This Market

• Site selection and zoning confirmation
  • Prioritize lake-access lots near marinas, boat ramps, and Santee State Park; demand and nightly rates tend to be strongest for lakefront and near-amenity properties. Source: Carolina Properties at Lake Marion (vacation rental guidance).
  • Confirm the parcel’s zoning permits short-term rentals with the relevant local authority. State law prevents prohibition, but jurisdictions may enforce building/fire/health/sanitation/noise/traffic/waste rules that apply to similar non-STR uses. Source: S.953 [6-1-2110(B)].
• HOA and condo association rules
  • If the property is governed by an HOA or condo association, review covenants for rental restrictions (e.g., minimum lease terms) and obtain any required approvals. Note: State law generally does not apply to private entities/associations. Source: S.953 [6-1-2110(D)].
• Business setup and licensing
  • South Carolina law defines “short-term rental” as fewer than 30 consecutive days. A sale/transfer triggers obligations under the South Carolina Vacation Rental Act if leases are fewer than 90 days. Sources: S.953 [6-1-2100(8)] and Vacation Rental Act (Section 27-50-230).
  • Select a licensed property manager or operate yourself. Vacation rental agreements and management agreements are required in writing and must be executed before occupancy. Source: Vacation Rental Act (Section 27-50-240).
  • Confirm local business licensing/tax registration requirements with the local authority where the property is located; registration may be required by local ordinance. Source: S.953 [6-1-2110(B)(2)].
• Tax registration and collection
  • Register with the South Carolina Department of Revenue (SCDOR) for sales/use tax and accommodations tax. The 7% state sales tax applies to accommodations to transients; lodging marketplaces are responsible for collecting and remitting the state tax when they facilitate the rental. Local accommodations tax may also apply (see “Taxes” below). Sources: S.953 [12-36-920].
• Insurance and risk controls
  • Obtain specialized vacation rental insurance (beyond homeowners insurance) to address liability and guest-related damage. Consider flood coverage for lakefront properties. Source: Carolina Properties at Lake Marion (insurance guidance).
• Operations and guest standards
  • Implement firm guest policies, occupancy limits, no-parties rules, and pet rules (if applicable) in your rental agreement; specify fees for damages and rule violations. Sources: Lisa Bair Rentals (operational policies examples).
  • Establish clear check-in/out times and turnaround logistics (note: 11:00 a.m. checkout and 4:00 p.m. check-in are common area practices; use as needed). Source: Lisa Bair Rentals.
• Professional management vs. self-management
  • Professional management is common in this market (fees typically 10–20% of rental income) and can improve guest experience and occupancy. Sources: Carolina Properties at Lake Marion (industry norms).
• Marketing and listing
  • Use mainstream platforms (Airbnb, VRBO, Booking.com) and high-quality photography. Emphasize unique features such as lakefront access, private docks, outdoor dining, and fire pits to maximize revenue. Source: Carolina Properties at Lake Marion.

Required Documents, Permits, Licenses, and Guidelines

• Vacation rental agreement (written; valid upon tenant signature, payment, or possession).
• Vacation rental management agreement (written; if a licensed manager/broker is used).
• SCDOR tax account registration for sales/use tax and accommodations tax.
• Local registrations/business licenses if required by the jurisdiction where the property sits (contact local authority; registration permitted by state law).
• Insurance: vacation rental liability and property coverage; consider flood coverage for lakefront homes.
• HOA/condo documentation (CC&Rs, rules, and approvals).
• Post-evacuation orders and local emergency contact information if mandated by local ordinance (public safety exceptions apply).

Regulations: City, County, and State

• State-level regulatory framework
  • Prohibition prohibited: Local governments may not ban short-term rentals; they may regulate for public health and safety, and may impose registration with fines for non-registration. Sources: S.953 [6-1-2110].
  • Definitions: “Short-term rental” is fewer than 30 consecutive days; “Vacation rental” (for transfer obligations) is fewer than 90 days. Sources: S.953 [6-1-2100(8)]; Vacation Rental Act [27-50-230].
  • Written agreements required: All vacation rentals require a written rental agreement; property managers must use written management agreements. Sources: Vacation Rental Act [27-50-240].
  • Title transfer obligations: Buyers take title subject to existing leases and management agreements for up to 90 days after deed recordation; deposits must be returned if leases extend beyond 90 days. Source: Vacation Rental Act [27-50-250].
  • Taxes: 7% state sales tax on transient accommodations; lodging marketplaces are responsible for collecting/remitting when they facilitate the rental. Source: S.953 [12-36-920(G)].
  • Local accommodations tax: Up to 3% (county up to 1.5% within municipal limits without municipal consent); municipalities must notify SCDOR and State Treasurer at least 60 days before the effective date. Sources: S.953 [6-1-520].
  • Collection/remittance: Local accommodations taxes are collected, remitted, and administered in the same manner as Section 12-36-920 (state accommodations tax). Source: S.953 [6-1-570].
• Clarendon County, Santee, and other municipalities around Lake Marion
  • No city- or county-specific short-term rental ordinances are identified in the provided content; therefore, state statutes apply. Always verify with the local governing body in case a local ordinance or registration requirement is in effect.

Taxes

• State-level taxes
  • 7% sales tax on gross proceeds from transient accommodations (rental charges for fewer than 30 days). When facilitated by a lodging marketplace, the marketplace is responsible for collecting/remitting the tax. Source: S.953 [12-36-920].
  • Local accommodations tax: Optional local tax up to 3% (county up to 1.5% within municipal limits absent municipal consent); municipalities must notify SCDOR/State Treasurer 60 days prior to the effective date. Source: S.953 [6-1-520].
  • Beach preservation fee (coastal municipalities only): May impose an additional 1% for beach-related purposes via referendum; does not apply to inland jurisdictions like Lake Marion. Sources: S.953 [6-1-620], [6-1-630].
• Reporting and remittance
  • State tax is collected and remitted in accordance with SCDOR procedures for accommodations; separate reporting may be required by municipality/county for local accommodations tax, administered like the state accommodations tax. Sources: S.953 [6-1-570] and [12-36-920].

Contact Information for Local Authority in Charge of STRs

• South Carolina Department of Revenue (tax registration/collection)
  • Phone: 803-898-5000
  • Website: dor.sc.gov
• Note: Clarendon County and municipal authorities (Santee, Elloree, Eutawville, St. George, Summerville, Dorchester, etc.) are the applicable local bodies if a local registration/ordinance exists; consult the appropriate jurisdiction for permits/registration. Because no specific local STR authority contact appears in the provided sources, direct confirmation is recommended.

Source Links (as requested)

• www.scstatehouse.gov/sess125_2023-2024/bills/953.htm — Bill S.953 (2024) on short-term rentals, lodging marketplaces, and accommodations tax.
• www.scstatehouse.gov/code/t27c050.php — South Carolina Vacation Rental Act (Title 27, Chapter 50).
• carolinapropertieslakemarion.com/2024/11/26/what-should-i-know-about-buying-a-vacation-rental-property-on-lake-marion/ — Market guidance for Lake Marion vacation rentals.
• www.lisabairrentals.com/vacation-information — Vacation rental guest policies and operational norms (fees, pets, check-in/out).
• www.dietercompany.com/south-carolina-vacation-rental-act/ — Summary and statutory text of the South Carolina Vacation Rental Act.

Notes for investors:

• Operate under the assumption that short-term rentals are permitted unless and until a local ordinance imposes registration or health/safety rules; confirm with the governing body for the specific parcel.
• Structure property management agreements and rental agreements to align with both the 30-day “short-term rental” definition and the 90-day “vacation rental” transfer obligations.
• Always verify whether the local accommodations tax is in effect and at what rate for your property’s jurisdiction before setting nightly rates and drafting guest invoices.