Charleston County works to close short-term rental loophole

CHARLESTON COUNTY, S.C. (WCSC) — In a county where vacation rentals and full-time residents often share the same neighborhoods, Charleston County leaders are moving closer to making permanent changes to how short-term rentals are regulated.

The Charleston County Council is considering an ordinance amendment that would strengthen enforcement against properties operating without the required permits and business licenses. The proposal received its second reading this week and is scheduled for a third and final reading later this month.

County officials said the update was prompted by new software that gives zoning and planning staff clearer access to listings on platforms such as Airbnb and Vrbo.

Using that system, the county identified properties that appeared to be operating without permits or outside their limits and sent mass notifications to owners last fall, warning them of potential violations.

Short-term rental permits are not permanent and must be renewed annually, allowing the county to regularly review compliance. However, officials said the current ordinance includes penalties only for permit holders who violate the rules, leaving a gap when properties are renting without permits altogether.

“One of the issues we came across is the ordinance currently includes provisions for folks who have short-term rental permits but are operating in violation of them,” Andrea Melocik-White, Charleston County’s deputy director of zoning and planning, said. “We can deny applications for renewals for up to a year, but we didn’t have a provision that dealt with folks who might be renting without permits.”

Melocik-White said the proposed amendments would address that gap.

“That’s what these current amendments do,” she said. “They allow the zoning and planning director to deny applications for short-term rentals for those properties for up to two years from the date the enforcement action is issued.”

Charleston County regulates short-term rentals differently depending on zoning. In most residential districts, properties can be rented for up to 72 days per year. In some residential areas, rentals may be allowed for up to 144 days per year or without owner occupancy if the property receives approval from the county’s Board of Zoning Appeals. In nonresidential districts, the county allows commercial guest houses, which can be rented year-round without owner occupancy.

For properties seeking approval to rent 144 days or more, county officials said there is a public notification process that allows neighbors to weigh in before a decision is made.

“That way their neighbors can come to the Board of Zoning Appeals and voice their opinions either in support or in opposition to them,” Melocik-White said.

Melocik-White said the county first began regulating short-term rentals in 2018 after receiving complaints from residents in unincorporated neighborhoods. However, these regulations can also play a more significant role for the county itself.

“They’re important from a business license and accommodations tax standpoint, so they are money generators and have economic value,” she said. “The county started regulating them because we were hearing a lot of complaints from residents in unincorporated areas. It’s the issue of someone who lives in a community versus a house that’s being rented while people are on vacation.”

She added that the regulations are also designed to protect renters by ensuring properties meet safety and zoning requirements.

“We want to make sure the zoning is appropriate,” Melocik-White said. “Part of what we look at is parking, making sure it can be accommodated on the site itself and not up and down the street, which can be a danger to others and to people getting in and out of vehicles. Sometimes there are building safety requirements, so we want to make sure the building is safe to the extent we can determine.”

Charleston County defines short-term rentals differently depending on zoning, so officials encourage homeowners to contact the zoning and planning department directly to confirm eligibility and understand the application process.

County officials said they are also working on a separate amendment that would add some form of neighbor notification for properties that rent for up to 72 days per year. That proposal was discussed by the county’s planning commission earlier this week and would still need to move through the county council process, which officials said could take several months.

As the county moves forward with enforcement changes, zoning officials said they want to work with property owners to bring rentals into compliance rather than pursue violations.

“If you have a short-term rental or are interested in doing one, please contact us,” Melocik-White said. “Even if you are currently operating without permits, we want to work with you to get you in compliance. We’re interested in compliance. We’re not interested in going through a violation process. We want to be proactive here.”

The ordinance amendment to strengthen enforcement is scheduled for a second reading Tuesday and a third and final reading Feb. 24.