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Voices. Knowledge. Solutions.

Cities Need Short-Term Rental Flexibility

by Scott Slatton, Director of Advocacy and Communications, Municipal Association of SC

As tourism in South Carolina grows, so does the use of short-term rentals. Visitors and residents alike use short-term rentals all over the state when they travel to visit friends and family, attend major events or just to get away. Short-term rentals make positive contributions to a local economy, but they sometimes present challenges to local governments and their residents. 

State law defines short-term rentals a little differently depending on how long a property is rented, but envision a short-term rental as a property listed for rent by a local property management company or an online marketplace facilitator like AirBnB. In most cases, short-term rental owners and operators must, and do, comply with state and local laws including collecting state and local accommodations taxes, zoning ordinances and obtaining a business license. 

Many short-term rental businesses, like hotels and condos in tourist destinations like the City of Myrtle Beach, have long operated in commercial areas, which serves to reduce the need for them in residential neighborhoods.

However, in places where short-term rentals have spread into residential neighborhoods, local elected officials have begun to adopt specific ordinances to address the concerns that permanent residents bring to them about the effects these businesses are having on their neighborhoods.

Parking issues, disruptive behavior, property damage and an erosion of the character of residential neighborhoods are among the concerns residents are bringing to local elected officials across the state. Of course, the nature of the challenges presented by short-term rentals varies from city to city. Residents’ concerns about short-term rentals in coastal communities are quite different from those of residents in upstate cities. Because of this, local municipal elected officials have responded to their residents in different ways. 

As a growing, year-round tourist destination, the City of Beaufort has seen a rise in demand for short-term rentals. Property owners have responded by listing their residential homes for rent. In response and after working closely with rental property owners and residents, the city council adopted a short-term rental ordinance that balances business’ interests with residents’ interests. Beaufort’s ordinance allows short-term rental businesses to operate in many of the city’s residential neighborhoods, which gives visitors options without concentrating them in large numbers. 

In the City of Clemson, the challenges are different. Clemson’s population explodes each weekend during football season. To accommodate the many thousands of temporary residents, the city’s short-term rental ordinance adjusts a home’s occupancy limits depending on where it’s located and whether or not the property is owner-occupied. This solution has helped preserve the character of many of Clemson’s single-family neighborhoods while accommodating visitors.

Local elected officials’ authority to work with their businesses and residents has allowed them to find solutions to the unique challenges presented by short-term rentals, particularly in residential neighborhoods. “One-size-fits-all” policies, like statewide legislation, fail to recognize the uniqueness of South Carolina’s cities and towns and therefore should be rejected. City and town council members and their residents should speak with their legislators and make sure they understand why it’s important that local decisions be left to local officials.

Join several mayors at the Municipal Association’s Hometown Legislative Action Day in Columbia on February 7 for a panel discussion about how their cities found solutions to short-term rental challenges. Learn more about all HLAD sessions and register at www.masc.sc (keyword: HLAD).