The last few years have shown a considerable rise in short-term rentals due to popular websites like Airbnb and Vrbo. These short-term rentals can be great for the local economy, but many areas want to make sure their city isn't too disturbed by the new visitors coming through. Hilton Head has recently changed its regulation regarding short-term rentals, so if you want to know a bit more about the new rules, have a look at this great article that will be the ultimate guide to short-term rental requirements in Hilton Head.
What is a Short-Term Rental?
Hotels have become a thing of the past now that people have started to use short-term rentals for their vacation stays. A short-term rental is defined as a rental that is for less than 30 days, and it is often used by those on vacation or those who are staying in the area for work. Many people would much rather live in an amazing cabin or cute detached tiny house over spending too much money for a dingy hotel room, and that's why short-term rentals have become popular all over the place.
Why Are There New Regulations in Place?
Short-term rentals have become very common for many larger vacation cities that heavily rely on tourist traffic, but they have also crept into smaller towns and made it difficult for their current residents. The new regulations have been put in place to make sure the residents of Hilton Head can live harmoniously with those who want to come and visit the beautiful island. These regulations were initially established in May 2022, but they came into place in January 2023.
What Should I Do if I Want to Become a Short-Term Rental Unit?
If you have a property that you are considering for short-term rentals, the first step you need to do is to apply for a business license for Hilton Head Island. You do not need to be a resident of the area to purchase the license, and you can apply as a corporation or LLC.
The next step you will need to take before you can start accepting customers is to get yourself a short-term rental permit. Your application for your permit will be reviewed, and they will decide whether or not your property is fit to be rented out. If you’re approved, you must follow the guidelines set in place to ensure that you can continue to rent the property out. Some places will only allow the property to be rented out if the owner is also present on the property, but in Hilton Head, you are able to use a Short-Term Rental Agent as a third party, which is fantastic for anyone who is considering the area for investment properties.
Keep in mind that you will have to pay taxes on your gross rental income from your short-term rental property of 10%. Seven percent of the taxes will be put towards the state, while the other 3% goes back into the city of Hilton Head. If you are using a property management company, you’ll need to ensure that they are collecting and remitting the taxes on your behalf, but if you are using a property management accounting software and collecting it yourself, you will be responsible for ensuring both taxes get paid to the right place.
What Will My Property Need to Qualify For a Permit?
To qualify for a permit, you must be able to abide by all of the rules set in place for a short-term rental. You will also need to provide the city with a site plan of your property to show that you can provide your guests with an area for parking and an area for trash disposal. The cost for a permit is $250 per property, and you can use the Hilton Head government website to submit your site plan along with your permit application.
You will also need to ensure that you have a business license before you start renting out your property. The fee for the license is $10, but keep in mind that you will be taxed on any business income you receive through your rental properties.
What Are the Short-Term Rental Requirements For Hilton Head?
Let's go over some of the standard regulations that have come into place as of January 2023 so you can have a good idea of what will be required of the owner and their guests.
Standard Rental Regulations
The owner or short-term rental agent must be available to be contacted by phone at all times.
If there is a complaint, the owner or short-term rental agent must begin taking action or be on site within an hour. The contact information for this person must be prominently displayed within the rental property.
Town-Provided Outreach Materials Displayed
The owner of the property must maintain and inspect the property to make sure it is in good condition and to make sure that the rules are being followed. They must then display any town-provided outreach materials.
Parking Regulations
The owner must make the renters aware of how many parking spots will be available to them in written form before the agreement to rent has been placed.
- The parking spaces provided must be at least 9x18 feet and be in an improved space.
- It’s up to the owner to ensure that the guests are parking in the designated parking spots.
Trash Regulation
The owner shall display the trash removal instructions, which will include designated pick-up times. Any instructions based on relevant property owner association requirements will also be provided clearly.
Owners must provide the rental with a designated trash storage area that is fenced to screen so that it is unable to be seen from the road. The owner must also be responsible for ensuring the garbage is placed no earlier than 24 hours before the designated pick-up time and kept out no later than 24 hours after the pick-up time.
Noise Regulations
The noise regulations must be advertised on the listing for the rental prior to the guest making the rental agreement. The owner must also display the following regulations at the rental property in full view of the guests:
- In the town of Hilton Head Island, South Carolina, it is unlawful to unreasonably disturb the peace and quiet of those in their homes or public places.
- Quiet hours are between 10 pm and 7 am, though town noise regulations are enforced 24 hours a day.
Safety Regulations
- The owner shall maintain full operational fire code-compliant smoke and carbon monoxide detectors in the rental unit.
- The owner must maintain at least one fully charged and fully operable fire extinguisher in the rental unit.
- The owner will provide unobstructed escape routes in the event of a fire.
The owner will notify the guests in writing of the existence of a pool or hot tub and any safety equipment related to the swimming pool or hot tub prior to the rental agreement being confirmed.
How Can I Let the Renters Know the Local Guidelines?
The materials to be displayed are available for free on the Hilton Head Island website, and the website also gives you a detailed guide on all of the requirements for short-term rental owners. The website gives you access to printable brochures so you can make the information readily available to all of your guests.
What Happens if I Can't Follow the Regulations or My Renters Are Causing a Disturbance?
Residents of the island have been advised to call a hotline for any major concerns with visiting renters, and you may be contacted if there is an issue that is of your concern. If your guests refuse to follow the rules that you have set in place for the rental, then you may be subjected to a citation or a fine. If multiple instances occur, then the board may consider revoking your rental permit.
Are There Any Other Things I Should Tell the Renters?
The Hilton Head website has a great list of other things that you might want to tell your renters.
Let them know not to disturb the local wildlife, especially any nesting sea turtles. This species is sensitive to bright white lights (providing your renters with a red beamed flashlight for the outdoors at night is a good idea), and they also have difficulty traversing rough sand, so remind your renters to clean up any sandcastles or holes they make on the beach.
Bicycling is permitted in the city, but riders must obey the rules of the road and stay on the right side of the street.
Animals are permitted on the beach, but there are exceptions. The website provides a helpful guide that lets you know the times that animals are permitted, so consider printing it out and delivering it to any guests that are including dogs in their stay.
Short-term rentals are a fantastic way to draw in new visitors to the area, and it helps boost the local economy, which is excellent for everyone. As long as you and your renters abide by the guidelines set in place, you will both enjoy the great benefits of being able to rent out new areas of the town. You can earn quite a bit of money from renting out properties to vacationing visitors, so why not consider investing in short-term rentals in Hilton Head?
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