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Complete Guide To Get A Vacation Rental License in Hilton Head, SC [UPDATED 2024]

Table of contents

Defining Short-Term Rentals in Hilton Head, SC

Hilton Head, SC, defines short-term (Airbnb) rentals (STRs) as any residential dwelling or part thereof rented out to guests on a short-term basis. These rentals encompass public transient lodging facilities rented for periods of thirty days or less at one time. 

It's important to note that in this context, the terms "vacation rental" and "short-term rental" are interchangeable.

Ownership of Multiple Vacation Rental Properties

Investors can own more than one vacation rental property in Hilton Head, SC. The city allows investors the flexibility to own multiple vacation rental properties without specific restrictions, as long as they comply with local laws and regulations.

Zoning Restrictions for STRs

Hilton Head, SC, imposes zoning restrictions for short-term rentals (STRs). These regulations and zoning requirements may vary depending on the zoning district where the property is situated. Property owners should take the time to understand the local zoning ordinances and any relevant restrictions or requirements set forth by the town of Hilton Head, SC.

Please note: The specific regulations may vary and it's advisable for property owners to consult the town's ordinances directly for accurate information.

Ownership and Operation of Airbnb Properties as Business Entities in Hilton Head, SC

In Hilton Head, SC, investors are permitted to own and operate their Airbnb properties through a business entity without facing any specific restrictions. The local regulations do not prohibit the use of a business entity for owning and managing vacation rental properties in the area.

Registration of Various Property Types as Vacation Rentals

In Hilton Head, SC, investors have the option to register various property types, including accessory dwelling units (ADUs), duplexes, and multi-family homes, as vacation rentals. However, this registration is subject to compliance with the relevant zoning and licensing requirements established by the local authorities.

Requirements for Obtaining a Vacation Rental License

To obtain a Vacation Rental License in Hilton Head, SC, property owners must adhere to the following requirements:

Business License: 

Owners must obtain a business license if they rent residential property in the town, regardless of whether it's for short-term (Airbnb) or long-term rentals.

Short-Term (Airbnb) Property Rental Business License Checklist:

  • Provide necessary documents such as Articles of Organization, Articles of Incorporation, or Partnership Agreement for business entities.
  • Out-of-state business entities must obtain a Certificate of Authorization as a Foreign Entity from the SC Secretary of State.
  • Complete the Town of Hilton Head Island Property Rental Business License Application, signed by the owner or an authorized representative.
  • Include a $10 non-refundable application fee with the completed business license application.
  • Submit the application via mail or fax as per the provided instructions.

Property owners must ensure compliance with all requirements, including the submission of necessary documentation and fees, to obtain a Vacation Rental License in Hilton Head, SC.

Costs Associated with Obtaining a Vacation Rental License in Hilton Head, SC

The cost linked with securing a Vacation Rental License in Hilton Head, SC is an Airbnb Rental permit fee of $250 for each property offered for short-term rental. This fee is mandatory to acquire the license for operating a vacation rental property in Hilton Head, SC.

Vacation Rental Occupancy Limits in Hilton Head, SC

Hilton Head, SC does not enforce specific occupancy limits for vacation rentals. However, it's advisable to stay updated about any potential changes to local regulations and consult the relevant authorities or official sources in Hilton Head, SC, to ensure accurate and current information regarding vacation rental occupancy limits.

Inspection Requirements for Obtaining an STR License

Hilton Head, SC does not mandate an inspection for investors to obtain a short-term (Airbnb) rental (STR) license.

Responsible Agent Requirements

Hilton Head, SC has responsible agent requirements for vacation rentals. The owner or Short-Term (Airbnb) Rental Agent must be available on-site or take responsible action within one hour of receiving a complaint. 

Additionally, they are obligated to prominently display contact information in the rental property to ensure easy access for guests or authorities if needed.

Insurance Requirements for Vacation Rentals in Hilton Head, SC

Apart from maintaining typical property insurance, there are no specific insurance requirements for vacation rentals in Hilton Head, SC.

Duration and Renewal Terms of Hilton Head, SC Vacation Rental License

In Hilton Head, SC, the duration of a Vacation Rental license or short-term (Airbnb) rental permit typically spans from January 1st to December 31st. This follows a calendar year basis, meaning the permit remains valid for the entirety of the calendar year.

Taxation Policies for Airbnb and VRBO Hosts in Hilton Head, SC

Platforms like Airbnb in Hilton Head, SC, do not remit taxes on the host’s behalf. If renting independently or through a non-licensed property management company like Airbnb, owners are responsible for collecting the three percent Local Accommodations Tax from guests and submitting it directly to the Town of Hilton Head Island.