Yes, short-term rentals are explicitly allowed in Simpsonville, SC under the new updated ordinance passed October 14, 2025, but they are subject to comprehensive regulations designed to protect residential neighborhoods while supporting the growing tourism economy.

Overview: STR Market Status in Simpsonville

Simpsonville, located 25 minutes outside Greenville, has experienced explosive growth with its population nearly doubling since 2000. The city expects to collect $4 million in tourism-related taxes this year, but realized that the growing popularity of STRs like AirBnbs and Vrbos was costing the city and local hotels revenue, as STR owners weren't filing for business licenses or paying accommodations taxes.

The city council responded by developing a comprehensive ordinance that "finally makes it fair," according to Planning Director Jon Derby. The new rules require STR operators to obtain permits, designate local agents, and comply with strict operational guidelines while making the activity legal for something that was happening anyway.

How to Start a Short-Term Rental Business in Simpsonville

Step 1: Understand the Application Timeline

• Current STR owners: Must obtain city permit within 120 days of ordinance enactment (October 14, 2025)
• New STR operators: Must obtain permit before beginning operations
• Non-compliance penalty: After the 120-day grace period, operating without approval requires a $250 permit application fee

Step 2: Secure Required Foundations

• Valid business license: Required before STR permit issuance
• Local STR agent: Must designate someone who lives within 15 miles of the property and is at least 21 years old
• Property ownership: Must provide proof of current ownership

Step 3: Prepare Required Documentation

• Complete city permit application with all required information
• Obtain property and liability insurance with STR rider
• Prepare guest agreement template meeting city requirements
• Obtain HOA certification if property is in an HOA neighborhood

Step 4: Submit Application and Await Approval

• Submit application to Simpsonville Planning Department
• Pay application fee if required (after grace period)
• Renew permit annually along with business license renewal

Required Documents, Permits, Licenses, and Guidelines

Primary Permits and Licenses

1. City STR Permit - Required to operate legally
2. Valid Business License - Required for permit issuance
3. Annual Renewal - Both STR permit and business license renew together

Required Documentation for Application

1. Property ownership proof:

   • Copy of deed, or
   • Notarized statement for owner-financed properties, or
   • Similar documentation confirming property arrangement

2. Local agent information:

   • Name, address, and 24-hour contact details
   • Telephone number and email address
   • Proof of 15-mile radius residency
   • Written certification of agreement to perform STR agent duties

3. Insurance requirements:

   • Property and liability insurance documentation
   • STR rider coverage acknowledgment
   • Owner's acknowledgment of responsibility for safety and sanitation

4. Compliance certifications:

   • Owner's sworn acknowledgment of receiving and understanding city STR regulations
   • Agreement to ensure rental use won't disrupt neighborhoods
   • HOA certification (if applicable) confirming STRs are permitted

5. Operational templates:

   • Guest agreement form containing specific provisions
   • Noise ordinance acknowledgment
   • Parking requirements compliance
   • Trash disposal requirements
   • Technical codes compliance

Operational Requirements

• Advertise permit number on all platforms (Airbnb, VRBO, etc.)
• Display business license conspicuously in the unit
• Maintain guest register with names, addresses, phones, and dates for 2 years
• Maximum occupancy: 2 adults per bedroom plus 2 additional adults total
• Parking limits: 1 vehicle per bedroom or 4 vehicles maximum
• Prohibited activities: Large gatherings over 8 persons, room-by-room rentals

Specific Regulations for Short-Term Rentals

Definition and Scope

• Short-term rental: Accommodation for transient guests for less than 30 consecutive days (reduced from previous 6-month threshold)
• Adult: Any person at least 21 years old
• Hosted vs. Unhosted: Unhosted STRs (homeowner vacates) permitted under this ordinance; hosted STRs only allowed as bed and breakfast inns where permitted

Operational Standards

1. Local Agent Requirements:

   • Must reside within 15-mile radius of property
   • Must be 21+ years old
   • Responsible for property maintenance and compliance monitoring
   • Must respond to city notifications regarding violations
   • Can be changed with 7-day written notice to city

2. Occupancy Limitations:

   • Maximum 2 adults per bedroom
   • Maximum 6 adults total per property
   • No room-by-room rentals permitted
   • No rentals within apartment complexes

3. Parking Requirements:

   • Maximum 1 vehicle per bedroom or 4 vehicles total (whichever is less)
   • Parking only on driveway or delineated areas
   • No parking on streets or undesignated areas

4. Prohibited Activities:

   • No STR signage on premises
   • No large gatherings over 8 persons (weddings, reunions, etc.)
   • No room rental basis

Advertising and Transparency Requirements

• Must list STR permit number on all advertisements
• Must list maximum adults and parking spaces on all listings
• Must include permit number on Airbnb, VRBO/Homeaway, FlipKey, and all platforms
• Business license must be posted in unit with owner/agent contact information

Tax and Financial Obligations

• Subject to local, county, and state taxes including property, sales, use, and accommodations taxes
• Must maintain current tax payments
• Business license and permit non-transferable and location-specific

Enforcement and Penalties

Grounds for Permit Denial, Suspension, or Revocation

1. Revoked, suspended, or lapsed business license
2. Lack of required insurance coverage
3. Failure to correct violations after notice
4. Failure to prevent recurring violations
5. Three code violation convictions within 12 months (results in 12-month permit suspension)

Appeals Process

• Right to appeal to City Administrator within 5 working days
• Appeals don't stay enforcement actions
• Hearing held within 30 days if city administrator available
• Formal representation by attorney permitted
• City administrator's decision is final

Penalties for Non-Compliance

• Each day of violation constitutes separate offense
• Misdemeanor charges possible
• Punishments per city ordinance Section 1-9
• Automatic permit revocation if business license suspended or lapsed

State-Level Regulations (South Carolina)

While Simpsonville has specific city regulations, SC state law also impacts STR operations:

State Tax Requirements

• Accommodations tax: Required for rentals under 90 days
• Sales tax: Applies to STR transactions
• Local hospitality taxes: May apply in addition to state requirements

Legislative Context

• 2023 proposed state bill that could have restricted local STR regulations died in subcommittee
• Cities maintain authority to regulate STRs within their jurisdictions
• No statewide prohibition or blanket permissions

Contact Information for Local Authority

Simpsonville City Hall

• Phone: (864) 967-9526
• Address: Simpsonville City Hall (specific address not provided in content)
• Planning Department: Handles STR permit applications and enforcement

Key Contacts

• City Administrator: Oversees ordinance enforcement
• Planning Director: Jon Derby - Handles permit applications and compliance
• City Attorney: Daniel Hughes - Legal interpretation of ordinances

Application Submission

• Planning Department: STR permit applications
• Business License Department: Required business license renewals
• Public Works Department: Trash disposal and parking requirements

Meeting Information

• City Council Meetings: First Tuesday of each month
• Planning Commission Meetings: As scheduled for zoning matters
• Contact city hall day-of-meeting for updated agendas

Source Links

1. Greenville Journal - STR Ordinance Approval: greenvillejournal.com/community/simpsonville-approves-updated-short-term-rental-ordinance-city-council-notes/
2. Post and Courier - STR Crackdown Analysis: www.postandcourier.com/greenville/business/short-term-rental-simpsonville-sc-airbnb/article_50ab3eae-72e1-4a3c-83ad-5c3c3a338116.html
3. STRisker Bulletin: writing.strisker.com/strisker-bulletin-simpsonville-sc/
4. Official Simpsonville City Ordinance O-2025-08: www.simpsonville.com/wp-content/uploads/2025/04/Council-Packet_2025-10-14.pdf
5. Simpsonville City Website: www.simpsonville.com/

Key Takeaways for STR Investors

1. Simpsonville welcomes STRs but under strict regulatory framework
2. Early compliance is advantageous - 120-day grace period for existing operators
3. Local agent requirement is significant operational consideration
4. Neighborhood compatibility emphasized through occupancy and parking limits
5. Transparency requirements affect advertising and booking platforms
6. Annual renewal creates ongoing compliance obligations
7. Strong enforcement mechanisms with suspension/revocation powers

The regulatory environment is structured to balance tourism economic benefits with residential neighborhood protection, making Simpsonville a viable but carefully regulated STR market for compliant investors.