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Anderson

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Anderson, SC

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STR Regulations for Anderson, South Carolina

Overview: Are Short-Term Rentals Allowed in Anderson, SC?

Short-term rentals are allowed in Anderson, South Carolina. The state defines “short‑term” as stays of fewer than 90 days and requires hosts to collect and remit state sales and accommodations taxes on those stays. In Anderson County, you must also collect and remit the county accommodations fee (3% of gross proceeds). At the City of Anderson level, you must obtain a business license to operate; there is no city-specific short-term rental permit or zoning ordinance in the materials provided, and the City of Anderson page directs hosts to the general business license process. As a result, investors should plan to satisfy state tax obligations, county accommodations fee obligations, and city business licensing requirements to operate legally.

Sources:

How to Start a Short-Term Rental Business in Anderson, SC (Step-by-Step)

Start with state-level compliance, layer county fee obligations, and finish with city licensing. If you intend to list on large platforms (Airbnb/Vrbo), confirm whether they will collect and remit state taxes for you (they do in South Carolina), but recognize that county and city fees may still require separate compliance.

Step 1 — Choose and prepare your property

  • Confirm zoning, HOA rules, insurance availability, and property maintenance expectations. While no city-specific STR zoning limits were provided in the materials, verify zoning directly with the City Planning Department before listing. Obtain appropriate insurance (commercial general liability is strongly recommended for STRs; see best practices below).

Step 2 — Register for a South Carolina Retail License

  • Why: Required to file and pay the State Accommodations Tax, unless a specific statutory exemption applies (e.g., renting fewer than 15 days per year; renting fewer than six rooms in your primary residence while remaining on site; or stays 90 days or longer).
  • How: Register online with the South Carolina Department of Revenue (SCDOR).
  • Exception: Hosts who rent fewer than 15 total days per taxable year in a dwelling they use as a residence are not subject to state accommodations tax. If you use platforms like Airbnb/Vrbo, they collect and remit state taxes for you.
  • Link: SC DOR Retail License [dor.sc.gov/tax-index/registration/Pages/licensing-retail-license.aspx]

Step 3 — Set up South Carolina sales and accommodations tax collection

Step 4 — Register for and collect Anderson County accommodations fee (3%)

  • The county imposes a 3% accommodations fee on gross proceeds from “accommodations” in the county, collected from the consumer by the provider and remitted monthly.
  • Remittance is due on the 20th day of each month to the Anderson County Finance Department. The fee applies to transient lodging (including STRs) within county boundaries. Proceeds from stays of 30 continuous days or longer to the same person(s) are excluded from the fee.
  • Link: Anderson County Accommodations Fee Ordinance No. 97‑006 [www.andersoncountysc.org/wp-content/uploads/2021/02/1997-006.pdf]
  • County Finance Department contact details are included under “Contact Information” below.

Step 5 — Obtain a City of Anderson business license

  • The City requires a general business license for commercial activity, including STR operations. No separate city STR permit or separate city accommodations tax is noted in the provided materials.
  • Contact the City of Anderson Business License Division for application details and any annual renewal requirements.
  • Link: City of Anderson Business Licenses [www.cityofandersonsc.com/business-licenses/]

Step 6 — Verify platform tax handling and complete onboarding

Step 7 — Create a compliance calendar and recordkeeping

  • Monthly: Remit Anderson County accommodations fee by the 20th; reconcile state sales and accommodations taxes (if not remitted by a platform); maintain receipts and ledgers.
  • Annually: Renew your city business license and maintain retail license status with SCDOR as required.
  • Keep records sufficient for audits (bookings, guest nights, gross proceeds, taxes/fees collected and remitted).

Required Documents, Permits, Licenses, and Guidelines

To operate legally, you will need the following based on the provided sources:

Important state-level exceptions

  • You are not subject to state sales and accommodations taxes if:
    • You rent fewer than 15 total days per taxable year in a dwelling you use as a residence; or
    • The stay is 90 days or longer; or
    • You rent fewer than six individual rooms in your primary residence and you remain on site during guest stays.
  • Source: Property Owners SC overview [propertyownerssc.org/regulations/]

Specific Regulations for Short-Term Rentals (City, County, and State)

City of Anderson

  • Business License: Required to operate an STR in the city. No separate city STR permit or zoning-specific restrictions are indicated in the provided materials.
  • No local accommodations tax is shown for the City of Anderson in the provided sources.
  • Best practice: Confirm zoning and any building/fire requirements directly with City Planning and Building Departments prior to listing.
  • Link: City of Anderson Business Licenses [www.cityofandersonsc.com/business-licenses/]

Anderson County

  • Accommodations Fee (Ordinance No. 97‑006):
    • Imposes a 3% fee on gross proceeds from rentals of accommodations to transients within Anderson County (includes the municipalities within the county’s boundaries).
    • Collected by the provider from the consumer; remitted monthly by the 20th to the Anderson County Finance Department.
    • Excludes stays of 30 continuous days or longer to the same person(s).
    • Enforcement: County may inspect and audit; violations subject to penalties (5% per month up to 100% of fees due and potential misdemeanor penalties).
    • Link: [www.andersoncountysc.org/wp-content/uploads/2021/02/1997-006.pdf]
  • County Finance Department portal and contact details are provided below.

State of South Carolina

  • Definition: Short-term rentals are stays fewer than 90 days.
  • Taxes:
    • State sales tax: 5%
    • State accommodations tax: 2%
    • You must have a Retail License to file and pay State Accommodations Tax (unless exempt).
    • Airbnb and Vrbo generally collect and remit these state taxes.
  • Exceptions to state sales and accommodations taxes:
    • Rent fewer than 15 total days per taxable year in a dwelling you use as a residence; or
    • The stay is 90 days or longer; or
    • You rent fewer than six rooms in your primary residence and remain on site during stays.
  • Consult the SCDOR rates table for any additional county/local taxes that may apply to your property.
  • Links: SCDOR Accommodations Tax [dor.sc.gov/tax/accommodations]; SCDOR Retail License [dor.sc.gov/tax-index/registration/Pages/licensing-retail-license.aspx]; SCDOR Rates Table (ST575) [dor.sc.gov/tax-index/sales-and-use/Sales%20Notices/ST575.pdf]

Best Practices and Neighbor-Friendly Operation (Investor Notes)

  • Insurance: Maintain commercial general liability coverage suitable for hospitality operations; personal or premise liability often excludes business activity. Use a policy that responds to guest injuries, amenity risks, and business income loss.
  • Safety: Install and maintain smoke and carbon monoxide detectors; ensure handrails/guardrails where applicable; keep a charged fire extinguisher; provide clear emergency instructions and contact information.
  • Noise and Quiet Hours: Establish house rules, monitor noise, and respond promptly to complaints to protect community goodwill and avoid code enforcement issues.
  • Parking: Provide clear parking instructions; avoid street overflow that could trigger complaints or citations.
  • Trash and Property Upkeep: Enforce exterior maintenance standards and trash pickup schedules to preserve neighborhood aesthetics.
  • Guest Communication: Provide a house manual with emergency contacts, parking instructions, and rules; share your local contact information with neighbors.
  • Compliance Calendar: Build a monthly compliance cadence (county fee remittance by the 20th; platform/state tax reconciliation; annual business license renewal).

These practices go beyond minimum legal requirements but materially reduce enforcement risk and enhance guest satisfaction.

Contact Information (Local Authority for STRs)

City of Anderson — Business License Division

Anderson County — Finance Department

  • Address: 101 South Main Street, Anderson, SC 29621 (P.O. Box 8002, Anderson, SC 29622)
  • Phone: Not provided in the materials.
  • Email: Not provided in the materials.
  • Website/Portal: Anderson County Finance Department (see county accommodations tax page) [www.andersoncountysc.org/departments-a-z/finance/]

Note: For planning/zoning or building/fire safety questions at the city level, contact City Hall directly using the official website listed above.

Source Pages (Links)

Investor takeaways

  • You can operate STRs in Anderson, SC with state tax compliance, a county accommodations fee (3%), and a city business license.
  • Most state taxes are handled by platforms; county fees typically require direct compliance by the host.
  • Build a compliance calendar, maintain documentation, and adopt neighbor-friendly operational practices to protect your investment and your community standing.
Anderson

Market Saturation Score

036912
Moderate Saturation
5/ 12
months with declining YoY revenue
5–7 declining months: moderate saturation risk - market may be nearing capacity.
View Full Anderson Market Analysis →

Photos of Anderson

Overview of Anderson

Anderson, South Carolina, often referred to as the "Electric City" due to its historical pioneering use of electricity, is located in the northwestern part of the state. The city has a population of approximately 28,000 people and is situated about 120 miles northeast of Atlanta, Georgia, which is the closest major city. Its proximity to lakes and mountains makes it an appealing destination for visitors.

One of the key landmarks in Anderson is the Anderson County Museum, which showcases the region's rich history and culture. More information can be found on their website. Another notable location is the Anderson Sports and Entertainment Center, which includes the Civic Center, a large amphitheater, and the Anderson Memorial Stadium, providing numerous recreational opportunities (for details, check their website).

The downtown area is another attraction, offering a variety of shops, restaurants, and historic sites such as the old Anderson County Courthouse and Carolina Wren Park. Information on local events and activities can be found on the city's official tourism website.

Given these attractions and its strategic location, Anderson presents a strong appeal for short-term rentals. Visitors can enjoy the mix of historic and modern amenities, as well as natural beauties like Lake Hartwell, which is a popular spot for fishing and boating (details at the U.S. Army Corps of Engineers).

In summary, Anderson, SC, with its combination of historical significance, recreational facilities, and proximity to major cities and natural landscapes, provides an enticing environment for short-term renters looking to explore the unique blend of urban and rural experiences.

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