Executive Summary: STR Allowance Status

Short-term rentals ARE ALLOWED in Columbia, SC, but with significant restrictions and regulatory requirements. The City of Columbia has implemented a comprehensive regulatory framework for short-term rentals (STRs) that includes both permitting requirements and a current moratorium on new permits in residential districts. As of June 17, 2025, Columbia City Council established a 365-day moratorium on the issuance of any new Short-Term Rental permits within residentially zoned districts, affecting applications received after Monday, June 9, 2025. Current STR permits with expiration dates of June 30, 2025, may still renew prior to July 1, 2025, but are not transferable to new owners.

How to Start a Short-Term Rental Business in Columbia, SC

Step-by-Step Process

1. Pre-Application Assessment

   • Verify your property zoning is not subject to the current moratorium
   • Confirm your property meets all regulatory requirements
   • Assess whether you qualify as owner-occupied or non-owner-occupied

2. Business License Acquisition (REQUIRED FIRST)

   • Contact the Business License office at 803-545-3345
   • Email: businesslicensemail@columbiasc.gov
   • This must be obtained before applying for an STR permit

3. STR Permit Application

   • Download and complete the STR application from Columbia PD website
   • Submit via email to the provided address
   • Pay applicable fees once approved

4. Payment and Permit Issuance

   • Make online payment at: access.columbiasc.gov/selfservice
   • Permit will be mailed upon payment confirmation

Key Eligibility Requirements

• Responsible Local Representative: Must have residence or business office within 45 miles of the STR property
• Ownership Structure: Owner or designated representative must be eligible for permit issuance
• Zoning Compliance: Property must be in an approved zoning district

Required Documents, Permits, and Licenses

Primary Permits and Licenses

1. Business License (MANDATORY FIRST STEP)

   • Contact: 803-545-3345
   • Email: businesslicensemail@columbiasc.gov
   • Must be obtained prior to STR permit application

2. Short-Term Rental Permit

   • Owner-occupied: $100 per year per unit + $50 application fee
   • Non-owner-occupied: $250 per year per unit + $50 application fee
   • Effective July 1st to June 30th annually
   • Late renewal fee: $100 (after July 1st)

Required Documentation

• Completed STR application and checklist
• Business License proof
• Property ownership documentation
• Responsible local representative designation (if applicable)
• Parking arrangement verification
• Compliance with occupancy limits

Specific Regulations for Short-Term Rentals

Current Moratorium (Effective June 2025)

365-Day Moratorium on New STR Permits in Residential Districts:

• Effective Date: June 17, 2025 (Ordinance 2025-054)
• Affected Zoning Districts:
  • T/C: Transitional/Conservation District
  • LL-R: Large Lot - Reserve District
  • RSF-1: Residential Single Family - Large Lot District
  • RSF-2: Residential Single Family - Medium Lot District
  • RSF-3: Residential Single Family - Small Lot District
  • RD: Residential Two-Family District
  • RD-MV: Residential Two-Family - Mill Village District
  • RM-1: Residential Mixed District
  • RM-2: Residential Mixed District

Operating Requirements

Definition: Short-term rental means the use and enjoyment of a dwelling unit, or portion thereof, for a duration of less than 30 consecutive days in exchange for valuable consideration. Hotels, motels, bed and breakfast establishments, and inns are excluded.

Minimum Stay Requirements:

• Property must not be available for occupancy for less than two nights (up from one night)

Occupancy Limits:

• Maximum occupancy: Two people per bedroom (excluding children) plus two additional people
• Total occupancy applies at any time of day, not just overnight stays

Parking Requirements:

• Two parking spaces must be made available on the property for each dwelling unit
• All parking must be off-street or on-site

Age Restrictions:

• Guest making the booking must be at least 25 years of age (raised from 18)

Guest Screening Requirements:

• Hosts must screen bookings for guests who live within 30 minutes of the property
• Verification required to ensure legitimate overnight stay, not parties or events

Neighbor Notification:

• Owners or representatives must notify adjacent homes that they are operating a short-term rental

Business License Requirements

Both the property owner and the person responsible for offering the unit must have a business license.

Permit Validity and Renewals

• Permit Period: July 1st to June 30th each year
• Renewal Deadline: Applications must be received on or prior to July 1st
• Late Fee: $100 for renewals received after July 1st
• Transferability: Current permits expiring June 30, 2025, are not transferable to new owners

Responsible Local Representative Requirements

• Must have residence or business office within 45 miles of the STR property
• Designated as agent responsible for operating the property in compliance with city ordinances
• Authorized to accept service of process on behalf of the owner under South Carolina Rules of Civil Procedure

Enforcement Powers

• Police chief or designee has power to immediately revoke license for extreme infractions
• Code Enforcement Division monitors compliance

Contact Information for Local Authorities

Primary STR Authority

Code Enforcement Division
ATTN: Audrey Lewis
920 Hemlock Drive
Columbia, SC 29201
Phone: (803) 545-3430
Website: columbiapd.net/short-term-rentals/

Business License Authority

Business License Office
Phone: (803) 545-3345
Email: businesslicensemail@columbiasc.gov

Online Services

• STR Application Submission: Via email to Code Enforcement
• Payment Portal: access.columbiasc.gov/selfservice
• Online Service Requests: columbiapd.net/service-requests/

State-Level Regulations (South Carolina)

Tax Requirements

South Carolina State Taxes for STRs:

• Rentals less than 90 continuous days are subject to state sales tax, state accommodations tax, and local tax
• Must register for retail license with South Carolina Department of Revenue (sc.gov/DOR)

Exemptions:

• Property rented less than 15 days during taxable year
• Six bedrooms or less in owner's primary residence (if not using marketplace platforms)

Marketplace Compliance:

• Owners using only STR marketplaces (Airbnb, VRBO) may not need state registration
• Still must file state lodging tax returns (may result in zero returns)

HOA Considerations

While South Carolina doesn't have statewide STR restrictions, Homeowners Associations can impose their own limitations:

• Many HOAs restrict or prohibit short-term rentals
• Restrictions should appear in association governing documents
• Common limitations include rental caps, prerequisites for renting, and tenant responsibility requirements

Source Links and References

1. Columbia Police Department - Short-Term Rentals: columbiapd.net/short-term-rentals/
2. Ordinance 2023-037 (STR Regulation): columbiapd.net/wp-content/uploads/2023/04/O_2023_037_Amending_1998_Code_of_Ordinances_Chapter_5.pdf
3. Columbia Municipal Code - Short-Term Rentals: library.municode.com/sc/columbia/codes/code_of_ordinances?nodeId=COOR_CH5BUBURE_ARTIXSHTERE
4. STR Application and Checklist: columbiapd.net/wp-content/uploads/2023/05/STR-checklist-application-5-30.pdf
5. STR Renewal Application: columbiapd.net/wp-content/uploads/2024/09/STR_Renewal_Application_2024_04_20.pdf
6. WLTX News - Columbia STR Ordinance Changes: www.wltx.com/article/news/local/columbia-sc-new-short-term-housing-rules/101-d31e44a4-e843-48c7-b12d-c3d0e711df9f
7. Airbnb Help - Columbia SC Regulations: www.airbnb.com/help/article/3606
8. South Carolina Department of Revenue: dor.sc.gov/

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Important Note for Investors: The current moratorium significantly impacts new STR investments in residential areas. Existing permit holders may continue operations, but expansion opportunities are limited during the 365-day moratorium period. Consider monitoring city council meetings for updates on potential ordinance changes and moratorium expiration.