Charleston, SC Airbnb & Short-Term Rental Regulations [2026 Guide]
Everything you need to know about operating a legal short-term rental in Charleston, South Carolina. Complete guide to the whole-house rental ban, permits, taxes, and compliance requirements updated for 2026.
Charleston, South Carolina is one of the most popular tourist destinations in the Southeast, but it also enforces some of the strictest short-term rental regulations in the country. The city's historic preservation priorities and neighborhood quality-of-life concerns have led to comprehensive restrictions that significantly limit STR operations compared to other markets.
Regulation Overview
Charleston's short-term rental ordinance defines STRs as any rental of a dwelling unit or bedroom for less than 30 consecutive days. The city has implemented strict regulations to preserve its historic character, protect residential neighborhoods, and manage the impacts of tourism on local communities.
Key Regulatory Bodies
- City of Charleston Livability Department: Issues STR permits and enforces compliance
- City of Charleston Business License Office: Handles business license requirements
- Charleston County: Administers county accommodations tax
- South Carolina Department of Revenue: Oversees state sales and accommodations taxes
Whole-House Rental Ban
Charleston's most significant STR restriction is the complete ban on whole-house short-term rentals. This regulation fundamentally changes how investors can operate in the Charleston market.
What the Ban Means
- Owner Must Be Present: Homeowners are required to inhabit the home while hosting short-term guests
- Overnight Requirement: At least one full-time resident must sleep at the property each night during guest stays
- No Investment-Only STRs: Non-owner-occupied short-term rentals are prohibited in residential areas
- No Grandfathering: Properties operating illegally will not be grandfathered into compliance
Permitted STR Types
Under the current ordinance, only these STR arrangements are permitted:
- Renting a spare bedroom while living in the home
- Renting a carriage house or accessory dwelling unit while living in the main house
- Commercial STRs in properly zoned commercial or mixed-use districts
- Bed and breakfast establishments with proper licensing
Permit Requirements
All short-term rental operators in Charleston must obtain proper permits and licenses before advertising or hosting guests. Operating without proper documentation can result in significant fines and legal consequences.
Required Documentation
Application through the City of Charleston Livability Department; must be renewed annually on the anniversary date
Required for all STR operators; must be renewed by February 1 each year
Documentation proving the property is your primary residence (utility bills, voter registration, etc.)
General liability policy with minimum $1,000,000 per occurrence coverage
South Carolina Retail License for collecting accommodations tax
Property must meet city fire safety regulations including smoke detectors and fire extinguishers
Permit Categories
Charleston divides residential STR permits into categories based on property characteristics:
- Category 1: Properties in historic overlay districts with additional preservation requirements
- Category 2: Properties built before certain dates with specific architectural guidelines
- Category 3: Standard residential properties meeting basic requirements
Zoning Restrictions
Charleston's zoning code significantly restricts where short-term rentals can operate. Understanding these restrictions is essential before purchasing property.
STR Overlay Zone
Non-owner-occupied STRs (Commercial STRs) are only permitted in designated Short-Term Rental Overlay Zones, which are primarily located in:
- Commercial districts
- Mixed-use zones
- Certain historic districts with commercial character
Residential Zone Restrictions
| Zone Type | Owner-Occupied STR | Non-Owner-Occupied STR |
|---|---|---|
| Single-Family Residential | Permitted (owner present) | Prohibited |
| Historic Residential | Permitted (owner present) | Prohibited |
| Multi-Family Residential | Permitted (owner present) | Prohibited |
| STR Overlay Zone | Permitted | Permitted |
| Commercial/Mixed-Use | Permitted | Permitted |
Accommodations Taxes
Charleston STR operators must collect and remit multiple taxes. The total tax burden in Charleston County is approximately 14%, making tax compliance an important aspect of operations.
| Tax Type | Rate | Remitted To |
|---|---|---|
| South Carolina State Sales Tax | 5.0% | SC Department of Revenue |
| State Accommodations Tax | 2.0% | SC Department of Revenue |
| Charleston County Accommodations Tax | 2.0% | Charleston County |
| City of Charleston Accommodations Tax | 2.0% | City of Charleston |
| Local Option Sales Tax | 1.0% | SC Department of Revenue |
| County Transportation Tax | 1.0% | SC Department of Revenue |
| School District/Education Tax | 1.0% | SC Department of Revenue |
| Total (Charleston County) | ~14% | - |
Platform Tax Collection
Airbnb, VRBO, and other major platforms collect and remit most state and local taxes automatically on behalf of hosts in South Carolina. However, hosts should:
- Register for a South Carolina Retail License regardless of platform collection
- File regular tax returns (even zero-dollar returns if platforms collect everything)
- Verify which taxes platforms are collecting in their specific jurisdiction
- Collect and remit taxes on any direct bookings outside of platforms
Key Restrictions
Charleston enforces several operational restrictions to protect neighborhood quality of life and ensure guest safety.
Occupancy Limits
- Maximum Occupancy: No more than 4 unrelated adults per stay, regardless of property size
- Children: Children under 18 are not counted toward the adult limit
- Listing Requirement: Occupancy limits must be clearly stated in all advertising
Advertising Requirements
- STR permit number must be displayed on all listings and advertisements
- Business license number must be displayed in the rental unit
- Occupancy limits and house rules must be posted
- Emergency contact information must be provided to guests
Parking Requirements
- Adequate off-street parking must be provided when possible
- Guest parking cannot obstruct neighboring properties
- Street parking restrictions in historic districts apply to guests
Noise and Nuisance Rules
- Guests must comply with Charleston's noise ordinances
- Hosts are responsible for guest behavior and noise violations
- Events and parties are prohibited unless otherwise permitted
- Refuse must be properly contained and disposed of
Insurance Requirements
Charleston mandates significant liability insurance coverage for all STR operators to protect guests, neighbors, and property owners.
Minimum Coverage Requirements
- Liability Coverage: Minimum $1,000,000 per occurrence
- Insurance Provider: Must be a company authorized to do business in South Carolina
- Coverage Scope: Must cover personal injury and property damage
- Continuous Coverage: Policy must remain active during all periods of STR operation
Penalties & Enforcement
Charleston actively enforces its STR regulations through a dedicated enforcement team and technology monitoring. The city does not grandfather in illegal operations and prosecutes violators aggressively.
Enforcement Resources
Charleston employs three full-time code enforcement officers dedicated exclusively to investigating and prosecuting unpermitted short-term rentals. The city also uses software to monitor platforms like Airbnb and VRBO for unlicensed listings.
Violation Penalties
| Violation Type | First Offense | Subsequent Offenses |
|---|---|---|
| Operating without permit | $500 fine | Increased fines + court summons |
| Zoning violations | Up to $500 per incident | Permit revocation |
| Noise/nuisance violations | Up to $500 per incident | Permit review/revocation |
| Occupancy limit violations | Warning to $500 fine | Permit suspension |
| Two violations in one year | Permit revocation | |
| Serious/repeated violations | Court summons, up to 30 days incarceration | |
Enforcement Outcomes
- Subpoenas and court hearings for serious violations
- Fines of $1,087 or more for prosecuted cases
- Properties returned to the real estate market after enforcement action
- Discovery of under-taxed properties during investigations
- Permanent prohibition from obtaining STR permits for repeat offenders
2026 Regulatory Updates
Charleston continues to refine its STR regulations. Here are the key developments and considerations for 2026:
Current Enforcement Priorities
- Whole-House Rental Enforcement: Increased monitoring for properties claiming owner-occupancy but operating as whole-house rentals
- Platform Monitoring: Enhanced use of technology to identify unlicensed listings
- Tax Compliance: Cross-referencing booking data with tax filings
- Historic District Focus: Additional scrutiny for STRs in historic overlay districts
Considerations for Investors
Given Charleston's strict regulations, investors should consider:
- Long-term rental strategies instead of STR in residential areas
- Commercial properties in STR Overlay Zones for non-owner-occupied operations
- Owner-occupied models with ADU or guest house rentals
- Nearby markets with more favorable regulations (Mount Pleasant, Folly Beach, etc.)
Frequently Asked Questions
No, Charleston has banned whole-house short-term rentals. Under the current ordinance, homeowners must inhabit the home while hosting short-term guests. At least one full-time resident must sleep at the property each night during guest stays. Only owner-occupied STRs with the owner present are permitted in residential zones.
Charleston requires both a Short-Term Rental Permit and a City Business License. You must also register to collect and remit accommodations taxes and maintain $1,000,000 in liability insurance. The business license must be renewed by February 1 each year, and the STR permit must be renewed annually on its anniversary date. Both license numbers must be displayed in your listing and within the rental unit.
Charleston STR operators must collect approximately 14% in total taxes including: 5% state sales tax, 2% state accommodations tax, 2% Charleston County accommodations tax, 2% City of Charleston accommodations tax, plus local option and transportation taxes totaling about 3% more. Airbnb and VRBO collect and remit most taxes automatically, but hosts should verify all obligations are met and maintain a Retail License with the state.
Charleston limits short-term rental occupancy to no more than four unrelated adults per stay. This strict limit applies regardless of the property size or number of bedrooms. Children under 18 are not counted toward this limit. Hosts must display occupancy limits in their listings and enforce them to maintain compliance.
Violations of Charleston's STR regulations can result in fines starting at $500 per incident, with penalties increasing for repeat offenses. Two violations within one year can result in permit revocation. Serious or repeated violations may result in court summons and potential incarceration of up to 30 days. Charleston employs three full-time code enforcement officers dedicated to STR compliance and uses software to monitor booking platforms.
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