Understanding Short-Term Rental Restrictions on Hilton Head Island: A Guide for Property Owners
Hilton Head Island, South Carolina, is a premier destination known for its stunning beaches, world-class golf courses, and family-friendly atmosphere. As the demand for vacation rentals continues to rise, the town has implemented regulations to balance the needs of residents, tourists, and property owners. If you’re considering listing your home as a short-term rental (STR) on platforms like Airbnb or VRBO, it’s crucial to understand Hilton Head’s rental policies to remain compliant with local laws. These laws change, so make sure to verify them with both the town and the HOA before making any financial decisions. Not advice.
What Qualifies as a Short-Term Rental on Hilton Head Island?
According to the Town of Hilton Head Island, a short-term rental is defined as any residential property rented for less than 30 consecutive days (Ordinance No. 2022-21). These rentals are primarily found in resort and beachfront areas, but specific regulations govern their operation.
Permit and Licensing Requirements
To legally operate a short-term rental in Hilton Head, property owners must obtain the following:
1. Short-Term Rental Permit
• Every property used for short-term rental purposes must obtain an STR permit from the town.
• The permit fee is $250 per property, per year.
• Owners must renew the permit annually and comply with the town’s operational requirements (Ordinance No. 2022-21, Section 2.1).
2. Business License
• A business license is required for all short-term rentals.
• The application fee is $10, and the annual license tax is based on gross rental revenues.
• Failure to obtain a business license may result in penalties (Hilton Head Island Municipal Code, Chapter 10, Article 2).
Tax Collection and Remittance
Owners must collect and remit a total 11% accommodation tax on their rental income, which includes:
• 5% State Sales Tax
• 2% State Accommodations Tax
• 2% Town Beach Preservation Fee
• 1% Town Accommodations Tax
• 1% Beaufort County Green Space Tax
(Hilton Head Island Municipal Code, Chapter 12, Article 1)
These taxes must be submitted to the appropriate local and state agencies to remain compliant.
Operational Requirements
To maintain the quality of life in residential areas, Hilton Head enforces several operational rules for short-term rentals:
1. Owner or Property Manager Availability
• Owners or their designated representatives must be available 24/7 by phone.
• Any complaints regarding noise, parking, or safety must be addressed within one hour of notification (Ordinance No. 2022-21, Section 5.2).
2. Parking Regulations
• Each short-term rental must provide adequate off-street parking.
• Parking spaces must be at least 9x18 feet and located on an improved surface.
• Owners must inform guests about the maximum number of allowed vehicles (Ordinance No. 2022-21, Section 3.3).
3. Noise and Community Standards
• Guests must adhere to the quiet hours from 10 PM to 7 AM.
• Noise complaints from neighbors can lead to violations and potential permit revocation (Hilton Head Island Municipal Code, Chapter 8, Article 3).
4. Trash Management
• Clear instructions must be provided regarding trash disposal.
• Trash bins must be stored out of public view and placed curbside no more than 24 hours before or after pickup (Ordinance No. 2022-21, Section 4.1).
5. Safety and Emergency Requirements
• Properties must have functional smoke and carbon monoxide detectors.
• At least one fire extinguisher must be present and accessible.
• Escape routes should remain unobstructed in case of emergencies (Ordinance No. 2022-21, Section 6.1).
Community and HOA Restrictions
While the Town of Hilton Head Island permits short-term rentals, some private communities and homeowner associations (HOAs) prohibit or restrict them further. For instance:
• Palmetto Dunes: The Leamington section does not allow short-term rentals.
• Sea Pines Resort: Allows STRs but has strict enforcement of occupancy limits and guest behavior.
• Shipyard & Long Cove: Some neighborhoods have HOA-imposed restrictions.
Before listing a property, owners should verify HOA rules to ensure compliance with community guidelines.
Penalties for Non-Compliance
Failure to adhere to Hilton Head’s short-term rental regulations can result in:
• Fines of up to $500 per violation.
• Suspension or revocation of the STR permit.
• Legal action for persistent violations (Hilton Head Island Municipal Code, Chapter 12, Article 5).
How to Apply for a Short-Term Rental Permit
To apply for a permit, follow these steps:
1. Visit the Official Hilton Head Island Website (www.hiltonheadislandsc.gov).
2. Complete the STR Permit Application online.
3. Submit Required Documents, including proof of ownership, parking details, and safety compliance.
4. Pay the $250 Permit Fee and wait for approval.
5. Renew annually to maintain compliance.
Final Thoughts
Hilton Head Island offers a fantastic opportunity for short-term rental investments, but staying compliant with local laws is essential. Understanding and following the town’s permit, tax, and operational requirements ensures a positive experience for guests, neighbors, and property owners. By adhering to Hilton Head’s regulations, you can operate a successful rental while contributing to the island’s welcoming and well-managed tourism environment.
For the most up-to-date regulations, visit the official Town of Hilton Head Island website or contact the local planning department.
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