Short-Term Rentals in Charleston, SC

Every city handles short-term rentals a little differently. In Charleston, South Carolina, there are 7 distinct rules that residents and property owners should be aware of. Some are stricter than what neighboring cities enforce, and others are more relaxed. Here is what you need to know.

Taxes & Fees

Charleston enforces the South Carolina Fairness in Lodging Act against short-term rental hosts who skip the local accommodations tax. City Code § 2-273 adopts the state act and sets a standalone civil penalty of $500 to $2,000 for every seven-day period a rental property is rented without collecting and remitting the required local accommodations tax.

Key details: Governing section: City Code § 2-273, adopted Ord. No. 2018-122. State law adopted: SC Fairness in Lodging Act, Title 6, Art. 7. Penalty range: $500 to $2,000 per violation. Penalty period: Assessed per 7-day rental period. Target: Single rental property hosts, not licensed hotels.

Failing to collect and remit local accommodations tax on a short-term rental triggers the civil penalty in § 2-273(b): not less than $500 nor more than $2,000, assessed for each seven-day period the property was rented without compliance. This penalty applies on top of, not instead of, any state-level enforcement available under the Fairness in Lodging Act itself.

Host Presence Rule

Charleston requires the record owner of a short-term rental to be a resident of the property and to sleep there overnight on every night a paying guest is on site. Sec. 54-208(b)(1) makes host presence a baseline condition of every Category 1, 2 and 3 STR permit, whether the property sits inside the Old and Historic District or off the peninsula.

Key details: Host must reside on site: Every night guests are present. Applies to: Category 1, 2 and 3 STR permits. Governing section: Sec. 54-208(b)(1). Enforcing office: Zoning Administrator. Penalty: Misdemeanor, fine and/or jail.

Operating an STR without the resident owner sleeping on site while guests are present violates Sec. 54-208(b)(1) and triggers the Chapter's violations clause, Sec. 54-208(e)(1)(a), for operating without complying with permit requirements. Sec. 54-208(e)(2) makes any violation a misdemeanor punishable by a fine and/or incarceration, with each day of noncompliance a separate offense, and authorizes the zoning administrator to revoke the STR permit outright.

Compared to other cities, Charleston takes a harder line on host presence rule. The enforcement and penalty structure reflects that.

Insurance Requirements

Every Charleston short-term rental host has to carry a general liability insurance policy of at least $1,000,000 per occurrence for as long as the STR operates. Sec. 54-208(b)(4) requires the policy to be written by a company licensed in South Carolina and cover both personal injury, including death, and property damage.

Key details: Minimum coverage: $1,000,000 per occurrence. Policy type: General liability. Insurer requirement: Licensed to do business in SC. Covers: Personal injury/death and property damage. Governing section: Sec. 54-208(b)(4).

Operating an STR without the required $1,000,000 general liability policy in force is a violation of Sec. 54-208(b)(4) and falls under the Chapter's violation clause, Sec. 54-208(e)(1)(a), for operating without complying with this section's requirements. Sec. 54-208(e)(2) classifies any violation as a misdemeanor carrying a fine and/or incarceration, with each day of noncompliant operation a separate offense, and lets the zoning administrator revoke the STR permit.

Short-Term Rental Parking Rules

Every Charleston short-term rental has to provide one dedicated off-street parking space on the property, on top of whatever parking the existing home already needs. Sec. 54-208.1(a)(5), 54-208.2(a)(5) and 54-208.3(a)(5) each impose the same one-space rule for Old and Historic District, peninsula and off-peninsula STR permits.

Key details: Required STR parking: One off-street space. Applies to: Category 1, 2 and 3 STR permits. Tandem parking: Allowed with other required spaces. Governing sections: 54-208.1(a)(5), .2(a)(5), .3(a)(5). Verified at: Site plan review, Sec. 54-208(c)(1)(d).

An STR permit application that cannot show the required off-street space fails the findings the zoning administrator must make under Sec. 54-208.1(a), 54-208.2(a) or 54-208.3(a), and an STR operated without maintaining that space violates Sec. 54-208(e)(1)(a). Sec. 54-208(e)(2) makes the violation a misdemeanor with a fine and/or incarceration, each day counted separately, and lets the zoning administrator revoke the STR permit.

Short-Term Rental Permits

Charleston requires an annually renewable Short Term Rental permit before any residential STR can operate, and Section 54-208(b) demands the record owner both run the rental and sleep on the property overnight whenever guests are present, carry $1,000,000 in liability insurance, and cap each permittee to one listed STR unit.

Key details: Permit renewal: Annual recertification required. Liability insurance: $1,000,000 minimum per occurrence. Owner residency: Must sleep onsite with guests. Units per permittee: One STR unit only. Posting notice: 15 days before approval.

Section 54-208(e) makes it a violation to operate an STR without complying with the chapter, expand an STR without a new permit, advertise or market a property as an STR without complying, or hold out an STR as available without displaying the permit number or within its permitted guest count. Any violation is a misdemeanor punishable by a fine and/or incarceration, each day of continued violation is a separate offense, and the zoning administrator can revoke the STR permit.

Compared to other cities, Charleston takes a harder line on short-term rental permits. The enforcement and penalty structure reflects that.

Occupancy Limits

Charleston caps every residential short-term rental unit at four adults, defined as anyone 18 or older, for stays of one to 29 consecutive days. The limit applies identically under all three STR permit categories: Category 1 in the Old and Historic District, Category 2 on the peninsula outside that district, and Category 3 everywhere else off the peninsula, under Zoning Ordinance Sections 54-208.1 through 54-208.3.

Key details: Max occupancy: 4 adults per STR unit. Stay length: 1 to 29 consecutive days. Units per property: 1 STR unit maximum. Owner residency: Owner must reside on-site overnight. Liability insurance: $1,000,000 minimum coverage.

Operating, expanding, or advertising an STR beyond the four-adult cap or without a valid permit is a misdemeanor under Section 54-208(e), punishable by a fine, incarceration, or both, with each day of continued violation charged as a separate offense. The zoning administrator can also revoke the STR permit outright for any violation, and a host whose permit was revoked in the prior 24 months is barred from receiving a new one under Sections 54-208.1 through 54-208.3.

Repeat Violator Strikes

Charleston bars anyone whose short-term rental permit was revoked in the previous 24 months from getting a new one. Sec. 54-208.1(a)(11), Sec. 54-208.2(a)(8) and Sec. 54-208.3(a)(7) each disqualify an applicant on this basis for the corresponding STR category, whether in the historic district, on the peninsula, or off it.

Key details: Look-back period: 24 months from revocation. Applies to: The applicant, not just the property. Category 1 section: Sec. 54-208.1(a)(11). Category 2 section: Sec. 54-208.2(a)(8). Category 3 section: Sec. 54-208.3(a)(7).

Applying for a new STR permit while barred under Sec. 54-208.1(a)(11), 54-208.2(a)(8) or 54-208.3(a)(7) means the application fails the zoning administrator's required findings and cannot be approved. A revoked permit itself traces back to a violation under Sec. 54-208(e)(1), which Sec. 54-208(e)(2) treats as a misdemeanor with a fine and/or incarceration and each day of continued unpermitted operation as a separate offense.

This is not one of those rules that cities tend to ignore. Charleston actively enforces its repeat violator strikes requirements.

The Bottom Line

Charleston is tougher than many cities when it comes to short-term rentals. Out of the 7 rules covered here, 3 are rated strict. If you are a homeowner, renter, or business owner in Charleston, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

All of the above reflects Charleston's municipal code as of our last review. If you need specifics on fines, exemptions, or filing requirements, the detailed ordinance pages linked above have the full breakdown.