Overview: Are Short-Term Rentals Allowed in Folly Beach?

Yes, short-term rentals are allowed in Folly Beach, SC, but they are heavily regulated. The city has implemented a comprehensive licensing system with strict caps and requirements. As of current regulations, Folly Beach allows short-term rentals through a capped licensing system that limits the total number of investor short-term rental (ISTR) licenses to 800 properties. The cap is currently maxed out, meaning new ISTR licenses are only available through inheritance or medical hardship exceptions.

How to Start a Short-Term Rental Business in Folly Beach

License Types Available

Folly Beach issues four distinct types of rental licenses:

1. Long Term Rental (LTR) License

• For properties rented 30+ days at a time
• Does not allow any rentals less than 30 days
• Available to any property owner
• Starting cost: $45 (covers $2,000 income) + $2.75 per additional $1,000

2. Owner Occupied Short Term Rental (OSTR) License

• For properties with 4% property tax rate
• Allows rentals 29 days or less
• Mixed rentals allowed (both short and long-term)
• Important: Owner-occupied properties rented more than 72 days in a calendar year may lose 4% property tax status
• Starting cost: $245 (covers $2,000 income) + $2.75 per additional $1,000

3. Investor Short-Term Rental (ISTR) License

• For properties with 6% property tax rate
• Allows rentals 29 days or less
• Mixed rentals allowed
• No limit on total nights rented
• Currently unavailable due to 800-license cap
• Starting cost: $245 (covers $2,000 income) + $2.75 per additional $1,000

4. Provisional Short-Term Rental License (PSTR)

• Temporary 90-day license for new owners
• Allows compliance with SC Vacation Rental Act
• Only for properties with existing valid ISTR or OSTR licenses
• Valid only for pre-booked rentals made before closing
• Expires at the end of the last authorized rental period

Step-by-Step Application Process

1. Determine Property Eligibility

   • Verify property tax status (4% for owner-occupied, 6% for investor)
   • Confirm license availability (ISTR licenses are currently capped)

2. Gather Required Documents

   • Charleston County Property Records (proof of ownership + bedroom count)
   • 2024 Accommodation Tax payment proof
   • Proof of minimum 28-night stays with confirmation numbers and payment proof
   • Date of last septic inspection
   • 2024 gross revenue documentation

3. Submit Application

   • Email applications to renewals@follybeach.gov
   • Or visit City Hall Monday-Friday, 1:00PM-5:00PM

4. Pay Associated Fees

   • Business license fee (based on income)
   • Rental registration permit: $17.50 per $1,000 of reported income
   • Additional taxes (see tax requirements below)

Required Documents, Permits, Licenses, and Guidelines

Essential Documents

• Charleston County Property Records showing ownership and bedroom count
• Proof of 2024 Accommodation Tax payments
• Confirmation numbers and proof of payment for minimum 28-night stays
• Last septic inspection date
• 2024 calendar year gross revenue

Required Permits and Licenses

• Business License (varies by type and income)
• Rental Registration Permit (OSTR and ISTR only)
• Accommodation Tax Registration (state requirement)

Tax Requirements

• State Sales and Accommodations Taxes (contact SC Department of Revenue)
• Local Accommodation Taxes (contact Charleston County)
• Property Tax Compliance (4% or 6% rate maintenance)

Operational Guidelines

• Properties must be rented minimum 28 days per year to maintain license
• No license transfers allowed
• Advertising more bedrooms than approved is a violation
• All rental nights count toward property tax status limits

Specific Regulations: City, County, and State

City of Folly Beach Regulations

• License Cap: 800 maximum ISTR licenses (currently reached)
• No License Transfers: All new owners must reapply
• Minimum Rental Requirement: 28 nights per year
• License Types: LTR, OSTR, ISTR, PSTR (as detailed above)
• Renewal Deadline: April 30 annually
• Registration Renewal: June 1 annually

Charleston County Regulations

• Property Tax Assessment: 4% for primary residences, 6% for investment properties
• 72-Day Rule: Owner-occupied properties rented >72 days may lose 4% tax status
• Accommodation Tax: Local tax collection and reporting

South Carolina State Regulations

• SC Vacation Rental Act: Requires temporary licensing for ownership transitions
• Sales and Accommodations Taxes: State-level tax obligations
• Minimum Rental Compliance: State-mandated temporary licensing provisions

Contact Information for Local Authorities

City of Folly Beach

General Licenses & Business License Questions

• Email: licenses@follybeach.gov
• Phone: (843) 513-1830 ext. 1866
• Hours: Weekdays 1:00PM-5:00PM
• Location: City Hall, weekdays 1:00PM-5:00PM

License Renewals

• Email: renewals@follybeach.gov
• Phone: (843) 588-2447 ext. 1866
• Hours: Weekdays 1:00PM-5:00PM
• Location: City Hall, Monday-Friday 1:00PM-5:00PM

Business License Specialist

• Contact: Stacee Freeman
• Email: sfreeman@follybeach.gov
• Phone: (843) 588-7017

STR Verification (for visitors)

• Phone: (843) 588-7017
• Email: licenses@follybeach.gov

City of Folly Beach Main

• Phone: (843) 588-2447
• Address: PO Box 4821, Center St, Folly Beach, SC 29439
• Non-Emergency: (843) 588-2433
• Emergency: 911

Charleston County

Accommodation Tax Questions

• Contact: Britt Miller
• Email: bmiller@charlestoncounty.org
• Phone: (843) 202-6095

Property Tax Assessment

• Contact: Charleston County Assessor's Office
• Phone: (843) 958-4100

South Carolina State

Sales and Accommodations Taxes

• Phone: (844) 898-8542 Option 6 (toll-free)
• Phone: (803) 898-5000 (local)

Links to Source Pages

• City of Folly Beach Short-Term Rental Information: cityoffollybeach.com/short-term-rental
• City of Folly Beach STR Verification: cityoffollybeach.com/short-term-rentals
• Live 5 News STR Ordinance Report: www.live5news.com/2024/02/20/second-reading-folly-beach-short-term-rental-ordinance-lead-new-changes/
• Smith Spencer Real Estate Analysis: smithspencer.com/folly-beach-short-term-rental-rules/
• Charleston County Property Tax Application: www.charlestoncounty.org/files/forms/tax/LegalRes4.pdf?430
• STR Concerns/Complaints Portal: complaints-str.deckard.com/follybeach-sc-str-complaints

Important Note for Investors: Due to the current 800-license cap being reached, new ISTR licenses are unavailable except through inheritance or medical hardship. Prospective investors should consider Long-Term Rental (LTR) licenses or properties in nearby municipalities with more permissive STR regulations. The city continues to enforce strict compliance measures, and violations can result in license suspension or revocation.