Short-Term Rentals in South Carolina: Rules You Need to Know
From the cobbled streets of Charleston to the Blue Ridge foothills in the Upstate, South Carolina attracts millions of visitors every year. For property investors and business professionals, this tourism boom presents a massive opportunity. However, navigating the rules for short-term rentals (STRs) can feel like driving through a dense fog on a mountain road. You know the destination is worth it, but you have to keep your eyes on the regulations to arrive safely.
Whether you're looking to host vacationers on the coast or provide solutions for business travelers in the manufacturing hub of the Upstate, understanding the legal landscape is non-negotiable. While the state generally supports property rights, the specific rules often come down to the city or county level. For those who want to bypass the headache of daily turnover and strict vacation rental zoning, seeking out affordable corporate lease apartments is often a smarter, more stable alternative.
What is the legal landscape for rentals in SC?
Is it legal to operate a short-term rental in South Carolina? Generally, yes. The state of South Carolina does not have a blanket ban on short-term rentals. However, the state legislature has largely handed the reins over to local municipalities. This means that what is perfectly legal in one county might face strict zoning hurdles just across the town line.
Why does this matter? Because you can't apply a "one size fits all" strategy to your real estate portfolio here. The state collects a 7% sales tax on accommodations (which includes a 5% state sales tax and a 2% accommodations tax), but local jurisdictions often pile on their own taxes and permit requirements. If you're not careful, these local variances can eat into your margins or result in hefty fines.
What are the rules in key cities and counties?
Because the state defers to local government, the rules change drastically depending on where your property sits. Here is a breakdown of how three major South Carolina hubs handle the short-term rental market.
Charleston
The Holy City is arguably the strictest jurisdiction in the state regarding STRs. To protect the historic character of downtown and residential neighborhoods, the city has implemented a tiered system. Generally, if you want to rent out a property for less than 30 days in the historic district, you must live on the property full-time.
Investment properties where the owner isn't present are heavily restricted and mostly banned in residential zones. If you're looking purely for investment vehicles that do not require you to live on-site, the historic peninsula might not be your best bet unless you're looking at commercial zones.
Myrtle Beach
As a primary vacation destination, Myrtle Beach has designated specific "tourism overlay zones." Short-term rentals are generally permitted in these zones but are prohibited in strictly residential neighborhoods. This prevents vacation parties from disrupting quiet residential streets. If you're buying here, you must verify the exact zoning of the street—not just the neighborhood—before signing a contract.
Greenville
In the Upstate, Greenville has taken a balanced approach. The city allows short-term rentals but requires owners to obtain a permit. The city checks for safety compliance and ensures that the character of neighborhoods—like the areas surrounding the iconic Falls Park on the Reedy—remains intact.
For investors looking just outside the city limits, temporary housing in Simpsonville South Carolina offers a compelling alternative. The regulations in these suburban areas can sometimes be more navigable, and the demand from business professionals working in nearby manufacturing hubs provides a steady stream of tenants without the seasonality of beach tourism.
How do you ensure you're compliant?
Compliance isn't just about avoiding a knock on the door from code enforcement; it is about protecting your asset.
Research Local Regulations
Never assume. Before you purchase a property, call the local zoning office. Ask specifically if the address is zoned for rentals under 30 days. In many Upstate areas, like the growing Five Forks neighborhood, Homeowner Associations (HOAs) may have rules that supersede city ordinances. An HOA ban on STRs is legally binding and can stop your business before it starts.
Obtain Necessary Permits
Most cities that allow STRs require a business license and a specific rental permit. For example, in the City of Greenville, you must renew your permit annually. This process usually involves a safety inspection to ensure you have working smoke detectors, fire extinguishers, and proper egress windows.
Handle Your Taxes
This is where many owners get tripped up. In addition to the state sales tax, you may be responsible for local hospitality taxes. For instance, short-term rentals are subject to a state sales tax of roughly 7%, but when you add in county and local hospitality taxes, the total tax burden can often reach 10% to 12% of your rental income. Failing to remit these taxes is one of the fastest ways to land in legal trouble.
What is the economic impact of STRs?
Short-term rentals have undeniable economic power in South Carolina. They generate significant tax revenue and drive tourism dollars to local restaurants and shops. In coastal areas, they are the lifeblood of the economy. In the Upstate, they support the booming automotive and engineering industries by housing contractors and visiting executives.
However, this growth brings community concerns. Residents in quiet suburbs often worry about noise, parking issues, and the erosion of community feel. This tension is exactly why cities are tightening regulations. It is also why many investors are pivoting toward temporary housing in Simpsonville South Carolina. By focusing on mid-term rentals (often 30 to 90 days) for corporate clients, investors can bypass many of the strict "party house" regulations while still securing premium rental rates.
How can you run a successful rental business?
If you decide to navigate the STR market, professionalism is your best defense against strict regulations.
Optimize Your Listings
Your photos and descriptions need to be accurate. Business travelers looking for temporary housing in Simpsonville South Carolina need to know about high-speed internet and workspace availability, not just the thread count of the sheets. Be clear about your house rules regarding noise and parties to deter problem guests.
Manage Guest Relations
Responsiveness is key. If a neighbor complains about noise, you need to handle it immediately. Being a "good neighbor" is the best way to ensure the city doesn't target your property for stricter enforcement.
Maintain the Property
Regular maintenance does more than keep guests happy; it keeps you compliant. A broken railing or a faulty smoke detector isn't just a bad review waiting to happen—it is a code violation. Schedule regular walkthroughs to ensure your investment remains in top condition.
Is the short-term rental market right for you?
The future of short-term rentals in South Carolina is likely to see increased regulation, not less. Cities are using software to track listings and catch unpermitted rentals. For many business professionals, the volatility of the nightly rental market is becoming less attractive than the stability of the corporate housing market.
By focusing on longer stays—like providing temporary housing in Simpsonville South Carolina—you can often avoid the regulatory heavy lifting associated with nightly rentals while still enjoying strong returns. Mid-term corporate rentals provide essential housing for the workforce that drives South Carolina's economy, offering a win-win for investors and the community.
If you're looking for a reliable partner to handle your housing needs without the regulatory guesswork, we are here to help. We understand the local market because we live and work here.
Ready to find the perfect housing solution?
Contact Upstate Corporate Housing at (864) 963-1005 or send us a message today at Upstate Corporate Housing.
