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Walhalla, SC

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STR Regulations for Walhalla, South Carolina

Overview (explicitness on legality)

  • Yes: Short-term rentals are allowed in Walhalla, SC, but strictly under the city’s zoning regulations as a conditional use.
  • Ordinance 2023-07 amended Walhalla’s Zoning Chapter to allow STRs in the R-25 Single-Family Residential zoning district subject to detailed conditions and approvals. The ordinance was adopted in 2023 and enforcement began January 1, 2024.
  • STRs are defined as rentals for less than 45 consecutive days and must meet occupancy, safety, parking, and operational standards.
  • Investors must obtain city zoning approval (Zoning Permit) and a city business license, pass a fire/life-safety inspection, and comply with tax and posting requirements.

How to Start an STR in Walhalla: Step-by-step

  1. Confirm zoning eligibility

    • STRs are a conditional use in the R-25 Single-Family Residential zoning district.
    • Only detached single-family dwellings and accessory dwellings are eligible. Manufactured homes are not eligible for STR use.
    • If your property lies in any non-R-25 zoning district, an STR is not permitted under this ordinance.
    • Note: For properties within an HOA, written confirmation from the HOA president that STRs are permitted is required.

  2. Prepare required documentation for city approval

    • Zoning Permit application (city form).
    • Site plan showing compliance with applicable setback/parking requirements and escape routes.
    • Property management plan that identifies a Short-Term Rental Agent.
      • If the owner does not live on-site: Owner/Agent must be capable of being physically present on-site after notification of an emergency or issue requiring presence by a City Department Head.
      • If owner lives on-site: A backup STR Agent must be identified unless the owner certifies the unit will not be rented when the owner is out of town.
    • Fire alarm monitoring contract, if applicable.
    • Copy of the rental agreement and house rules (see specific content requirements in Required Documents).
    • Proof that zoning and fire/life safety standards will be met (e.g., detectors, extinguishers, escape routes, pool/tub disclosures).

  3. Submit application and fees; schedule inspection

    • Submit the Zoning Permit application, the above documents, and pay the Zoning Permit fee.
    • Pay the business license fee (set annually by City Council in the Budget Ordinance).
    • Schedule and complete a Fire Marshal inspection; approval must be obtained before issuance.
    • Ensure no outstanding municipal citations exist at the property.

  4. Obtain the city business license (Short-Term Rental)

    • Required before operating.
    • Business license renewal is annual; fees are set by the city.
    • Keep the business license current at all times.

  5. Comply with state and county tax obligations

    • Register and remit the 2% state accommodations tax and the 5% sales tax (with any applicable local option sales tax components) to the South Carolina Department of Revenue (SCDOR).
    • Register and remit the Oconee County local accommodations tax (LAT) at 3% for unincorporated Oconee properties or 1.5% if located inside a municipality that also collects accommodations tax. Walhalla collects a local accommodations tax; remit to Oconee County using the HostCompliance portal.
    • Note: South Carolina’s state-level accommodations tax is 2%; county and municipal local accommodations taxes apply in addition.
    • Submit LAT returns monthly by the 20th of each month for the prior month (local practice). Align state sales/accommodations tax remittance with SCDOR filing cadence.

  6. Prepare the property and begin operations

    • Install/maintain required safety devices and post all required information inside the unit (see Required Documents).
    • Delineate on-site parking to meet city standards and specify permitted vehicle counts in the guest agreement.
    • Implement trash storage and pickup policies and provide written instructions to guests.
    • Enforce occupancy limits and minimum/maximum stay rules in listings and guest agreements.
    • Include STR contact information in all advertisements and within the unit.

  7. Ongoing compliance and renewal

    • Annual renewal of the city Zoning Permit/STR approval and business license.
    • Notify the city of any changes to owner/agent contact information.
    • Maintain compliance with posted quiet hours (10:00 PM–7:00 AM), no large gatherings unless approved, and no on-site signage.
    • Respond promptly to guest complaints and city inquiries.

Required Documents, Permits, Licenses, and Guidelines

  • City Zoning Permit (per property, non-transferable)
    • Requires: application form, site plan, property management plan, rental agreement/house rules, fire alarm monitoring contract (if applicable), fee payment, and no outstanding municipal citations.
  • City Business License (STR-specific)
    • Fee set annually by City Council; required prior to operating and renewed annually.
  • Rental agreement and house rules (content must include)
    • Minimum and maximum stay.
    • Maximum number of guests: 12 for primary house rentals; 4 for accessory dwelling rentals; children under 2 are exempt.
    • Maximum vehicles permitted: 1 per bedroom for primary house rentals, max 6; 2 for accessory dwelling rentals; specify on-site parking only (no street parking).
    • Quiet hours (10:00 PM–7:00 AM) and noise ordinance application.
    • Prohibition on large gatherings (e.g., weddings, reunions) unless specifically approved by the City.
    • Pet rules (pets cannot be left outside unattended; must comply with the City’s Animal Code).
    • Trash disposal instructions (pickup times) and emergency contact information, including the police non-emergency number, posted conspicuously in the unit.
  • Property management plan
    • Identify the STR Agent; specify on-call availability and on-site response capability when required.
    • Note management changes to the Zoning Administrator; non-compliance can result in suspension.
  • Fire/life safety compliance
    • Fire Marshal inspection and approval required prior to STR approval issuance.
    • Maintain operable smoke and carbon monoxide detectors; maintain at least one fully charged fire extinguisher; maintain unobstructed escape routes; disclose swimming pools/hot tubs and related safety equipment to guests in writing.
  • Insurance
    • While not explicitly detailed in the ordinance, a comprehensive STR insurance policy covering property damage and liability is strongly advised as a risk-control measure.
  • Additional verifications
    • HOA confirmation letter (if applicable) confirming STRs are permitted.
    • Ensure no outstanding municipal code citations related to the property.

Specific Regulations (City of Walhalla)

  • Zoning: STRs are permitted as a conditional use in the R-25 district for detached single-family dwellings and accessory dwellings; manufactured homes are excluded.
  • Occupancy: Maximum of 12 guests; children under 2 are exempt.
  • Stay length: Rentals are limited to a maximum of 45 consecutive days.
  • Permits and licensing
    • Zoning Permit (per property) and city business license are required before operating.
    • Approvals are non-transferable and valid only for the specific property in the permit.
  • Management and availability
    • Owner/STR Agent must be available during rental periods to respond to complaints; must be reachable by phone at all times and capable of being physically present on-site when notified by a City Department Head for emergencies or issues requiring presence.
    • If the owner is not on-site, on-call capability is required; owner on-site requires a backup agent unless the owner certifies the unit will not be rented when away.
  • Safety and life safety
    • Fire Marshal inspection and approval required; smoke and CO detectors, fire extinguisher, unobstructed escape routes required.
    • Written disclosure required for any swimming pool or hot tub and related safety equipment.
  • Parking
    • On-site parking only; located to the side or rear (except existing front driveways). Parking spaces must be at least 9’ x 18’ and improved with an impermeable or semi-impermeable surface (pavement, gravel, etc.).
    • Vehicle limits: 1 per bedroom (max 6) for primary house; 2 for accessory dwelling.
    • No off-site parking (including adjacent rights-of-way).
  • Trash management
    • Provide a designated, screened/fenced trash storage area; display trash instructions and pickup times; keep containers secured; set out no more than 24 hours before pickup; remove within 24 hours after pickup.
  • Operational requirements
    • No on-site signage permitted.
    • STRs must reflect and blend with neighborhood character; property must be properly maintained and regularly inspected by owner/agent.
    • Quiet hours: 10:00 PM–7:00 AM; prohibit large gatherings unless approved by the City.
    • Advertising must include STR contact information and any other required disclosures (the ordinance requires the responsible party’s contact information to be prominently displayed in the unit).
  • Violations and enforcement
    • Violations include operating without approval, advertising without approval, or failing to comply with any ordinance requirement.
    • Suspension or revocation grounds include improper issuance, fraud, noncompliance, tax delinquency, nuisance declared by the Chief of Police, or more than two municipal code convictions within a 12-month period related to the STR.
    • Operating without approval doubles the application fee (minimum $1,000) and may bar new approvals for two years if the owner does not submit an application within 60 days of notice.
  • HOA and other laws
    • STRs must also comply with applicable HOA covenants and all other city, county, state, and federal laws; nothing in the ordinance waives other requirements.

County-Level Regulations (Oconee County)

  • Local Accommodations Tax (LAT)
    • Rate: 3% for properties located in unincorporated Oconee County; 1.5% for properties located inside a municipality that also collects accommodations tax (such as Walhalla). Remit LAT to Oconee County.
    • Registration and monthly remittance are required via the county’s HostCompliance online portal. Payment is due by the 20th of each month for the prior month.
    • Filing: Use the county’s LAT Remittance Form; maintain records. Registration in the county portal is required.

State-Level Regulations (South Carolina)

  • State Accommodations Tax: 2% on gross accommodations proceeds; remitted to SCDOR along with the 5% state sales tax and any applicable local option sales tax components.
  • Registration: Obtain a SCDOR account for sales and accommodations tax collection and remittance.
  • Deductions and credits: Eligible business expenses (e.g., depreciation, property taxes, insurance, repairs, utilities, cleaning, management, professional services, travel) can reduce taxable income; consult a tax professional.
  • Definition for state reporting: STRs are accommodations furnished for less than 90 consecutive days (state-level context), but Walhalla’s local rule caps stays at 45 days.
  • Local taxes: Municipalities (including Walhalla) may levy a local accommodations tax. The city’s 2023–2024 ordinance implies Walhalla has a local ATAX; the specific local rate was not specified in the provided documents.

Tax Rates Summary

  • State: 5% sales tax + 2% state accommodations tax (plus any local option sales tax components) → remitted to SCDOR.
  • County LAT: 3% (unincorporated) or 1.5% (inside a municipality that collects ATAX) → remitted to Oconee County via HostCompliance.
  • City (Walhalla) local accommodations tax: Implemented by the city; specific rate not provided in the sources—verify with the City of Walhalla.

Contact Information (Walhalla and Oconee County)

  • City of Walhalla, Community Development (Zoning/STR)
    • Phone: (864) 638-4343
    • Address: 206 N Church St, P.O. Box 1099, Walhalla, SC 29691
    • Website: www.cityofwalhalla.com
  • City of Walhalla (general)
    • Fax: (864) 638-4357
  • Oconee County, Pay Taxes / Accommodations Tax
  • Oconee County, Building Codes (fire/life safety and inspection questions)
    • Phone: (864) 718-1005
  • Other Oconee County contacts (for convenience)
    • Tax Notices: (864) 638-4158
    • Real Estate: (864) 638-4150
    • Court House: (864) 638-4280
    • Other Inquiries: (864) 638-4158

Important Compliance Links and Documents

What do Airbnb hosts actually earn in Walhalla?

Walhalla hosts earn a median $16,815/year with $209 ADR and 31% occupancy.

Top performers pull in $24,127+ per year.

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Walhalla

Market Saturation Score

036912
Mild Saturation
3/ 12
months with declining YoY revenue
2–4 declining months: early saturation pressure - watch for trend persistence.
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Photos of Walhalla

Overview of Walhalla

Walhalla sits in the westernmost corner of South Carolina, in Oconee County, with a population of roughly 4,000 residents. Tucked into the foothills of the Blue Ridge Mountains, the small city carries a strong German heritage, with a downtown that nods to the Bavarian-style architecture of the nineteenth-century immigrants who settled the area. Walhalla is best known today as a basecamp for exploring the Sumter National Forest, the Jocassee Gorges, and the broader upstate South Carolina mountain region. It lies about 100 miles northeast of Atlanta and roughly 40 miles west of Greenville, the nearest sizable city.

Just a few miles outside town, Stumphouse Tunnel is a partially completed railroad tunnel begun in the 1850s as part of the Blue Ridge Railroad. Never finished, the tunnel is now a cool, climate-controlled walk through mid-nineteenth-century engineering ambition and is managed as a small public park. The same site is home to Issaqueena Falls, a roughly 100-foot cascading waterfall reached by a short, family-friendly trail.

About 20 minutes north of Walhalla, Lake Jocassee draws visitors with its exceptionally clear water, dozens of small waterfalls spilling directly into the lake, and an undeveloped shoreline. The lake is the centerpiece of Devils Fork State Park, which offers camping, boat ramps, and access for kayakers, paddleboarders, and scuba divers. Jocassee is widely regarded as one of the cleanest and most scenic lakes in the eastern United States.

To the west, the Chattooga River forms the border between South Carolina and Georgia, and a portion of it is federally designated as wild and scenic. The river offers whitewater rafting, fly fishing, and quiet floats, with outfitters based in the surrounding small towns. Closer to Walhalla, Oconee State Park provides lakeside cabins, a swimming beach, easy hiking trails, and a peaceful mountain campground that makes it a year-round draw for families looking to unplug.

Walhalla makes a compelling base for a short-term rental because it pairs small-town character and a distinctive, German-flavored downtown with immediate access to some of the Southeast's most striking natural areas. Guests can spend mornings wandering past Victorian-era storefronts and afternoons paddling on a mountain lake, hiking to a waterfall, or rafting a wild river, almost always within a half-hour drive. Its relative obscurity, set against the depth of outdoor recreation in the surrounding national forest and state parks, gives property owners a steady stream of travelers seeking a quieter, more nature-focused alternative to the busier mountain towns of nearby North Carolina and north Georgia.

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