Charleston, South Carolina, remains a highly lucrative market for short-term rentals, boasting an average daily rate of $225.1, annual revenue of $32,100, and a strong market score of 86, despite some recent declines in summer occupancy rates.
Thriving Short-Term Rental Market in Charleston, South Carolina
Charleston, South Carolina, continues to shine as a top destination for short-term rentals, attracting a diverse and affluent tourist base. Despite some recent fluctuations, the market remains robust. As of the summer of 2023, vacation rentals in the Charleston region are seeing an occupancy rate of 42%, although this is down from 47% the previous year.
However, the average daily rate has increased by 3.5% to $706, helping to mitigate the occupancy decline. This upward trend in rates, combined with Charleston's enduring appeal due to its historic charm, vibrant culture, and culinary excellence, ensures that short-term rental operators can still achieve significant revenue. With an annual revenue potential of $32,100 and an average daily rate of $225.1, Charleston remains an attractive and lucrative market for investors and hosts.
Short-Term Rental Regulations in Charleston, South Carolina for 2024
General Requirements
- Primary Residence: The property must be the owner's primary residence to qualify for a short-term rental license. Investment properties are only eligible for commercially zoned rentals.
- Occupancy Limits: No more than four adults (aged 18 and over) can occupy a short-term rental at once. Families with children can exceed this limit, but the number of minors must be reasonable given the space.
Licensing and Permits
- Short-Term Rental License: Homeowners must obtain a short-term rental license from the City of Charleston's Department of Planning, Preservation, and Sustainability. The license must be renewed annually by the original date of issuance.
- Business License: A business license is required and must be renewed annually by April 30.
Zoning and Location
- Zoning Restrictions: Short-term rentals are only permitted in specific zones, including the Old and Historic District, other areas on the Charleston peninsula, and incorporated areas like West Ashley, James Island, and others. Commercially zoned properties have different regulations.
- Short-Term Rental Overlay Zone: Properties within the Cannonborough-Elliotborough area have specific regulations if commercially zoned.
Safety and Inspections
- Fire Safety Inspections: Mandatory fire safety inspections are required to ensure the property meets the same standards as permanent residences. This includes smoke alarms, fire extinguishers, and other safety measures.
- Building and Fire Inspections: Inspections are required prior to the approval of a short-term rental permit.
Hosting Requirements
- Owner Presence: The homeowner must inhabit the home while hosting short-term guests, though they do not need to be physically present at all times. At least one full-time resident must sleep there each night of the renters' stay.
- Local Responsible Party: A local responsible party must be designated and available 24/7 to handle any issues that arise during the rental period.
Parking
- Off-Street Parking: At least one off-street parking space is required per bedroom rented, with a maximum of four spaces allocated for the STR unit. Parking must be on the property and cannot be shared or located on the street.
Advertising and Signage
- Advertising Limits: The maximum occupancy and STR permit number must be included in all listings and advertising. No signs other than the STR decal issued by the City and a small sign identifying the unit as an STR are allowed.
Taxes and Fees
- Taxes: Short-term rentals are liable for state, county, and city taxes, including sales tax, accommodations tax, and other local taxes.
- Application Fees: A $250 application fee is required for new permits, and $100 for renewals.
Compliance and Enforcement
- Annual Renewal: All permits and licenses must be renewed annually. Failure to comply can result in fines, penalties, or revocation of the permit.
- Enforcement: The City of Charleston strictly enforces these regulations, and violations can result in fines, revoking of the permit, or even incarceration.
Additional Restrictions
- No Whole House Rentals: Short-term rentals of whole houses are banned in Charleston. Only accessory units within the primary residence can be rented short-term.
- No Events: Hosting events such as weddings, parties, or similar gatherings is not allowed on the property.
Top Neighborhoods for Airbnb Revenue in Charleston, South Carolina
Downtown Charleston
- Appeal: Downtown Charleston offers a prime location with easy accessibility to the city's vibrant attractions, including local shops, restaurants, galleries, and historical sites. Guests can experience unique neighborhood vibes, and the area is known for its safety and friendly locals. Properties range from cozy studio apartments to luxurious townhouses, ensuring something for every preference.
- Highlights: Walking distance to King Street, historic Ansonborough neighborhood, pet-friendly options like the Mary Scott House, and beautifully restored historic homes such as the Jacob Rabb House and the Brick House with Courtyard.
West Ashley
- Appeal: West Ashley is ideal for those seeking a peaceful retreat without sacrificing convenience. It offers affordable pricing, proximity to outdoor recreation areas, and easy access to beach attractions and Charleston Harbor. The neighborhood is perfect for nature lovers and those looking to escape the city's hustle and bustle.
- Highlights: Cozy and charming Airbnbs in quiet streets, short drive to beaches and Charleston Harbor, and access to the West Ashley Greenway for biking and jogging.
Mount Pleasant
- Appeal: Mount Pleasant is an upscale neighborhood known for its high-end amenities, beautiful beaches, and parks. It is perfect for families and offers a range of shopping and dining options within walking distance. The area provides a laid-back atmosphere with stunning views of nearby waterways.
- Highlights: Exclusive accommodations, proximity to Shem Creek & Marina for kayaking and paddle boating, and easy access to historic Downtown Charleston. Properties like the Coastal Getaway offer a clean, cozy, and ideally located stay.
Avondale
- Appeal: Avondale is central to all parts of Charleston, making it easy to drive to various attractions. The neighborhood is known for its modern and newly renovated properties, free off-street parking, and walking distance to dozens of bars, restaurants, and coffee shops.
- Highlights: Private, modern studio apartments with kitchenettes, grills, outdoor seating, and access to beach equipment. It is also close to the West Ashley Greenway for outdoor activities.
These neighborhoods are highly appealing due to their unique blend of historical charm, modern amenities, and convenient locations, making them top choices for generating Airbnb revenue in Charleston, South Carolina.
Furnishing and Design Tips for an Inviting Airbnb in Charleston, South Carolina
Reflecting Charleston's Unique Style
1. Choose Timeless, Sturdy Furniture
Opt for furniture that is both durable and easy to maintain. Select pieces with a classic, timeless design that aligns with Charleston's historic and elegant vibe. Consider solid beds, sofas with washable covers, and sturdy dining tables that can withstand the wear and tear of frequent guests.
2. Incorporate Smart Storage
Utilize smart storage solutions such as beds with drawers, wall hooks, pegboards in the kitchen, and stackable containers to keep the space tidy and organized. This helps in maintaining a clutter-free environment and makes the space feel more spacious.
3. Use Mirrors to Enhance Space
Mirrors can make your Airbnb feel bigger and brighter. Place full-length mirrors strategically to reflect natural light and create the illusion of more space. This is particularly effective in smaller rooms and can add a touch of elegance to the space.
4. Select Furniture with Big Functionality
Opt for space-saving furniture with multiple functions, such as sofa beds, folding tables, or ottomans with hidden storage compartments. These versatile pieces allow you to transform the layout of your space according to your guests' needs.
5. Maintain a Clean and Inviting Atmosphere
Ensure that the space is meticulously clean and well-maintained. Guests put a premium on cleanliness, so regular cleaning and refreshing of the space is crucial. Consider including basic supplies like toilet paper, shampoo, and soap in bulk to ensure they are always available.
6. Reflect Charleston's Style
Charleston is known for its historic charm and unique styles such as shabby chic and farmhouse. Incorporate these styles into your decor to create a cozy and welcoming atmosphere. Use bold colors and eclectic options to appeal to guests seeking a unique experience.
7. Ensure Accessibility and Compliance
Given Charleston's strict regulations, ensure that your Airbnb is accessible and compliant with local rules. This includes maintaining occupancy limits, obtaining necessary permits, and ensuring the property meets all required standards.
8. Provide Essential Amenities
Stock your kitchen with essentials like a coffee maker, microwave, toaster, and kettle. Also, provide amenities such as a hairdryer, basic toiletries, and a first-aid kit to enhance the guest experience. High-quality, durable towels in neutral colors are also a must.
9. Pay Attention to Lighting and Colors
Use lighting and colors that reflect Charleston's warm and inviting atmosphere. Neutral colors for towels and linens can provide a hotel-like feel, and darker colors for furniture can hide stains better and add practicality.
10. Add Local Touches
Highlight the unique aspects of Charleston in your decor and description. Mention historic neighborhoods, nearby attractions, and local amenities to make your listing appealing and informative for guests.
Discovering Charleston: Local Attractions and Insider Tips for Your Guests
Must-Visit Attractions
Historic Sites and Landmarks
- Magnolia Plantation & Gardens: A historic site with stunning gardens and a nature center.
- Middleton Place: Known for its well-preserved 18th-century architecture and beautiful gardens.
- Old Exchange and Provost Dungeon: A historic building with a rich history, including serving as a British dungeon and a meeting place for the ratification of the Constitution.
- Charles Towne Landing: The birthplace of South Carolina, featuring a replica village and sailing ship.
Parks and Outdoor Spaces
- Riley Waterfront Park: A popular park with waterfront views, walking paths, and the iconic Pineapple fountain.
- Charleston Waterfront Park: Offers beautiful views of the harbor and Cooper River.
- Arthur Ravenel Jr. Bridge: A great spot for sunset views and a pedestrian path for walking and biking.
Unique Experiences
- Rainbow Row: A colorful series of 13 historic houses with fascinating histories.
- Angel Oak: A 400- to 500-year-old tree with an otherworldly presence, located just outside the city.
- Charleston City Market: One of the nation’s oldest public markets, offering local goods, cuisine, and cultural experiences.
Museums and Educational Sites
- Patriots Point Naval & Maritime Museum: Home to the USS Yorktown and other naval and maritime exhibits.
- Gibbes Museum of Art: Features a premier collection of American art and promotes Charleston's cultural heritage.
Insider Tips
Booking and Planning
- Annual Dickens Dinner: Book early or add your name to the waitlist, as this event sells out quickly.
- Tours and Attractions: Advance reservations are recommended for popular tours, such as those offered by Old South Carriage Co..
Local Weather
- Charleston Strolls Holiday Walking Tours: Check the local weather before setting out, as December temperatures can be warmer than expected.
Dining and Events
- Yorktown Countdown: Eat dinner before attending this event, as only hors d'oeuvres are served on-board the USS Yorktown.
- Charleston City Market: Spend a day here trying local cuisine, shopping for souvenirs, and interacting with locals.
Additional Tips
- Transportation: Consider using the pedestrian path on the Arthur Ravenel Jr. Bridge for a scenic walk or bike ride.
- Nature and Wildlife: Visit the Sea Turtle Care Center at the South Carolina Aquarium to see endangered sea turtles being rehabilitated.
- Nightlife: Enjoy live music and fine dining at one of Charleston’s many award-winning restaurants and pubs.
By sharing these attractions and insider tips, you can help your guests have a memorable and enriching experience in Charleston, South Carolina.
Practical Tips to Run a Successful Short-Term Rental Business in Charleston, South Carolina
To ensure a smooth and compliant short-term rental operation in Charleston, South Carolina, several practical tips can make a significant difference. Here are some key considerations:
Noise Regulations and Guest Communication
Inform your guests about the city's noise regulations and quiet hours to avoid complaints and potential penalties. Including this information in your digital and physical house manual helps set clear expectations and maintains a positive relationship with neighbors.
Comprehensive House Manual
Create a detailed digital and physical house manual that includes essential instructions, Wi-Fi passwords, and other important details. This manual should also outline the rules and regulations specific to Charleston, such as the limit of four adults per unit and the requirement for owners to be generally available.
Simplified Check-in Process
Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide clear instructions on how to use the smart locks and ensure that guests have all the necessary information before their arrival.
Parking Instructions
Include detailed parking instructions with photos in your house manual to help guests navigate any specific parking requirements. This is particularly important given that properties must have at least one off-street parking space exclusively designated for the rental tenant.
By following these tips, you can enhance the guest experience, ensure compliance with Charleston's strict regulations, and maintain a successful and profitable short-term rental business.
Here is a brief list of house cleaning providers in Charleston, South Carolina:
House Cleaning Providers in Charleston, SC
The Cleaning Authority of Charleston
- Offers detailed house cleaning services using an environmentally responsible Detail-Clean Rotation System.
- Services include bathrooms, kitchens, living areas, and sleeping areas.
- Fully bonded and insured, with professionally trained staff.
Palmetto Maids
- Provides maid and home cleaning services with safe products for families and pets.
- Offers various packages for apartments and houses of different sizes.
- Known for personable employees and additional touches like special treats.
Castle Keepers House Cleaning
- Specializes in eco-friendly and sustainable house cleaning services.
- Offers instant online quotes and customized, personalized maid services.
- Serving Charleston and surrounding neighborhoods since 1994.
The Cleaning Crew Charleston
- Offers routine cleaning, deep cleaning, and move-in/out packages.
- Provides online booking, online payments, and a satisfaction guarantee.
- Services include standard cleaning, deep cleaning, and specialized cleaning needs.
Molly Maid of Greater Charleston
- Provides customized cleaning plans with no contracts and a 24-hour warranty.
- Trained professionals use modern cleaning techniques to meet individual customer needs.
- Guarantees satisfaction with their Neighborly Done Right Promise.
Charleston, South Carolina: Understanding Short-Term Rental Management Fees
In Charleston, South Carolina, short-term rental management fees can vary significantly, typically ranging from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management, which includes comprehensive services such as guest communication, marketing, pricing optimization, and maintenance, tends to be on the higher end of this spectrum, often starting at around 15% of the revenue generated.
Basic services, which may include only the essential tasks like listing creation and booking management, can be less expensive, sometimes starting as low as 10% per booking. Additionally, property owners may incur extra fees for services like professional cleaning, repairs, and interior design, which can further impact the overall cost of management. These fees are influenced by factors such as property size, location, and the level of demand in the area, making it important for property owners to carefully evaluate the services and fees associated with each management company.