Despite current summer occupancy rates being lower than the previous year, Hilton Head Island's short-term rental market remains robust, with increased average daily rates, a strong average occupancy rate of 60%, and opportunities for last-minute bookings and optimized revenue management.
Thriving Despite Challenges: Hilton Head's Short-Term Rental Performance
Despite some year-over-year declines, the short-term rental market in Hilton Head, South Carolina, remains robust and promising. As of the summer of 2023, occupancy rates on Hilton Head Island stood at 47%, although this is down from 56% in the same period last year.
However, the average daily rate has seen a 4% increase to $815, helping to mitigate the impact of lower occupancy. This resilience is a testament to the island's enduring appeal as a premier vacation destination. With a historical average occupancy rate of 60%, surpassing the US average, Hilton Head continues to attract visitors who appreciate its unique charm and extended stay opportunities, with an average length of stay of 5.5 days.
The shorter booking windows and increased last-minute bookings also indicate that there is still significant potential for growth and optimization in the market. As travelers continue to flock to the island, savvy operators are well-positioned to capitalize on these trends and maintain a strong performance in the short-term rental sector.
Short-Term Rental Regulations in Hilton Head, South Carolina for 2024
General Requirements
Short-Term Rental Permit: Required for all residential properties rented for less than 30 days. The permit fee for 2024 is $250 per property, and each permit must be renewed annually.
Business License: A business license is mandatory before obtaining a short-term rental permit. The application fee is $10, and a Business License Tax, calculated on gross rental revenue, must be paid by the end of April each year.
Tax Obligations
- State and Local Taxes: Owners must collect and remit 10% state and local accommodations taxes on gross rental income. This can be done by the owner or through a SC Licensed Property Manager.
Operational Requirements
Responsible Agent: The owner or a designated agent must be available by phone at all times and able to respond on-site or take responsible action within one hour of any complaint.
Noise Regulations: Owners must notify guests of the Town’s noise regulations, which include quiet hours between 10 PM and 7 AM. Noise regulations are enforced 24/7.
Trash Regulations: Owners must provide designated trash areas, display trash removal instructions, and ensure trash containers are not visible from the street and are not placed curbside more than 24 hours in advance or left there more than 24 hours after pickup.
Parking Regulations: Owners must notify guests of the maximum number of vehicles permitted, ensure parking spaces are at least 9 feet by 18 feet with an improved surface, and prevent off-site parking on streets or grass/pine straw.
Safety Regulations
- Fire and Safety Compliance: Owners must maintain fully operational smoke and carbon monoxide detectors, at least one fully operable and charged fire extinguisher, and unobstructed escape routes in the event of a fire. Owners must also notify guests about pool or hot tub safety equipment if applicable.
Additional Requirements
Site Plans for Single-Family Homes: Owners of single-family dwellings must upload a site plan showing designated parking and trash areas for review by town staff.
Property Maintenance: Owners must properly maintain and regularly inspect their properties to ensure continued compliance with all regulations.
Community-Specific Regulations
Sea Pines Rental Registration: For properties in Sea Pines, owners must register their rental properties and pay an annual fee based on the number of bedrooms.
Palmetto Dunes Short-Term Rental Registration: For properties in Palmetto Dunes, owners must register their short-term rental properties with the POA by April 30th each year. This registration is separate from the town’s permit and business license requirements.
Top Airbnb Revenue-Generating Neighborhoods in Hilton Head, South Carolina
1. Sea Pines
- Location and Amenities: Sea Pines is a 5,200-acre community known for its picturesque landscapes, including sandy beaches, world-class golf courses, tennis courts, and bike paths. It features the famous Harbour Town Marina, numerous dining options, shopping, and entertainment venues.
- Appeal: The combination of luxury homes, extensive amenities, and the annual RBC Heritage golf tournament makes Sea Pines highly desirable for guests, ensuring strong rental income, especially during peak seasons.
2. Palmetto Dunes/Shelter Cove
- Location and Amenities: Palmetto Dunes is a 2,000-acre community with stunning beachfront properties, world-class amenities, and a mix of single-family homes, villas, and condos. It includes golf courses, tennis facilities, and the Shelter Cove Harbour & Marina.
- Appeal: Guests are attracted to the resort-like atmosphere, convenient beach access via the Dunes Buggy shuttle, and the variety of accommodations available, making it an ideal spot for both families and couples.
3. Shipyard Plantation
- Location and Amenities: Shipyard Plantation is a gated community with a serene environment, beautiful landscapes, and convenient access to the beach. It features miles of bike paths, a private beach club, golf courses, and tennis facilities.
- Appeal: The family-friendly atmosphere, proximity to beaches, and extensive amenities make Shipyard Plantation appealing to families looking for a quieter beach experience.
4. Forest Beach (Coligny)
- Location and Amenities: Forest Beach, particularly the Coligny area, offers direct beach access, bike paths, and close proximity to Coligny Plaza, which features numerous shops, restaurants, and entertainment options.
- Appeal: The lively atmosphere, regular events, and convenient access to amenities make Forest Beach a favorite among families and young professionals seeking a vibrant beach lifestyle.
5. Folly Field
- Location and Amenities: Folly Field is known for its family-friendly environment, beach access, parks, and a mix of condominiums and single-family homes. It is close to various dining and shopping options.
- Appeal: This area is attractive due to its affordability, direct beach access, and the availability of budget-friendly accommodations, making it a popular choice for families seeking a cost-effective beach getaway.
These neighborhoods are highly appealing to guests due to their combination of natural beauty, extensive amenities, and convenient access to beaches and other attractions, ensuring strong demand and significant Airbnb revenue.
Tips for Furnishing and Designing an Inviting Airbnb in Hilton Head, South Carolina
Update and Furnish to Reflect Local Charm
- Update your property to make it appealing to potential guests. This includes painting, installing new appliances, and adding furniture and decor that align with Hilton Head's coastal and natural beauty.
Choose Coastal and Beach-Inspired Decor
- Incorporate coastal themes that use natural materials, reflecting the city’s waterfront vibes. This can include light colors, beach-inspired artwork, and furnishings that evoke a sense of the ocean.
Add Modern Amenities
- Provide modern amenities such as smart TVs, high-quality bedding, and stylish kitchenware to enhance the guest experience and attract discerning travelers.
Incorporate Local Artwork and Crafts
- Use local artwork and crafts to add a unique and authentic touch to your property. This helps guests connect with the local culture and enhances the overall ambiance.
Ensure Comfort and Practicality
- Furnish your property with comfortable and practical items. This includes fully-equipped kitchens, free Wi-Fi, beach chairs, umbrellas, and other amenities that make guests feel at home.
Highlight Outdoor Spaces
- If your property has outdoor spaces, highlight them. This can include screened balconies, access to pools, tennis courts, and other recreational facilities that guests can enjoy.
Maintain a Clean and Well-Maintained Property
- Ensure that your property is clean and well-maintained. This includes regular cleaning, maintenance, and emergency repairs to keep the property in top condition and attract positive guest reviews.
Optimize for Family-Friendly and Pet-Friendly Options
- Consider adding family-friendly and pet-friendly features to cater to a broader audience. This can include bunk beds for children, pet-friendly amenities, and spacious living areas.
Utilize High-Quality Photos and Detailed Descriptions
- When listing your property, use high-quality photos and write detailed descriptions to showcase its best features and attract potential guests.
Reflect the Local Aesthetic
- Use decor styles that align with Hilton Head's unique aesthetic, such as rustic furniture for a historic charm or modern, minimalistic designs for a contemporary feel.
Provide Additional Amenities
- Offer additional amenities like free bikes, beach towels, and other items that enhance the guest experience and make the stay more enjoyable and convenient.
Discovering Hilton Head: Local Attractions and Insider Tips for Your Guests
Beaches and Water Activities
Coligny Beach Park
- Location: Heart of Hilton Head
- Amenities: Restrooms, showers, changing rooms, benches, gazebos, coffee shops, ice cream shops, seafood restaurants, umbrella and beach chair rentals
- Insider Tip: Free beach access 24/7 during summer months. Lifeguards are on duty from 6 am to 9 pm (March to October) and 6 am to 6 pm (November to February).
Folly Field Beach Park
- Location: Central Hilton Head
- Amenities: Playgrounds, picnic tables, volleyball courts, basketball courts, walking paths, pier with benches
- Insider Tip: Explore the walking paths through wooded areas to spot deer and birds.
Historical and Cultural Sites
Harbour Town Lighthouse
- Location: Yacht Basin, Harbour Town
- Attractions: Museum with lighthouse history, Lighthouse Legends Tour, Coast Guard Exhibit
- Insider Tip: Climb to the top for breathtaking views and learn about local history. Wear comfortable shoes for the stairs.
Pinckney Island National Wildlife Refuge
- Location: Near Hilton Head Island
- Attractions: Wildlife viewing, hiking trails
- Insider Tip: Ideal for nature lovers and birdwatchers. Bring binoculars and comfortable hiking shoes.
Outdoor Adventures
Kayaking and Paddleboarding
- Locations: Various waterways and marshes
- Operators: Kayak Hilton Head, Sea Monkeys Watersports
- Insider Tip: Plan excursions during warmer months or early mornings/late afternoons for calmer waters. Use tandem kayaks for younger children and bring waterproof cameras.
Ziplining
- Operator: My Adventure Hilton Head
- Insider Tip: Opt for cooler hours (morning or late afternoon) and check the website for tour details and availability.
Bike Rentals
- Operators: Various bike rental shops
- Insider Tip: Use the over 50 miles of hard-packed beaches and paved public pathways to explore the island. Perfect for families and those looking for a leisurely ride.
Family-Friendly Activities
Pirate Adventures
- Operator: Pirates of Hilton Head
- Insider Tip: Best for ages 2-10. Reservations recommended, especially during peak season. Bring sunscreen, hats, and water.
The Sandbox Children's Museum
- Location: Hilton Head Island
- Attractions: Hands-on play and learning areas
- Insider Tip: A premier destination for early childhood education and fun. Check the museum's schedule for special events and activities.
Golf and Sports
Harbour Town Golf Links
- Location: Sea Pines Resort
- Attractions: Watch golfers play, host of the RBC Heritage tournament
- Insider Tip: Even if you're not golfing, the area offers great restaurants and shops. If you don't have a car, cabs are available outside the resort gates.
Tennis and Pickleball
- Locations: Various resorts and facilities
- Insider Tip: Many resorts offer programs and clinics for all skill levels. Ideal for families and those looking to improve their game.
Dining and Shopping
Local Dining
- Recommendations: Fresh seafood, Gullah-inspired soul food, award-winning hot wings
- Insider Tip: Explore local eateries and restaurants in Harbour Town and Coligny Beach Park for a variety of dining options.
Shopping
- Locations: Harbour Town, Coligny Beach Park, various boutiques and specialty stores
- Insider Tip: Check out unique boutiques and designer shops. Don't miss the local farmers’ market for organic produce.
Nature and Wildlife
Nature Tours
- Operators: Outside Hilton Head, Island Skiff Adventure Tours
- Insider Tip: Choose guided tours to explore the island's natural beauty, spot dolphins, and learn about the local ecosystem.
Lowcountry Celebration Park
- Location: Hilton Head Island
- Attractions: Adventure Playground, Open Pavilion, Setting Sun Sculpture
- Insider Tip: Perfect for families with kids. Enjoy the lighted perimeter walk and relax on the lawn.
Practical Tips to Run a Successful Short-Term Rental Business in Hilton Head, South Carolina
To ensure a smooth and enjoyable experience for both you and your guests, here are some practical tips for managing a short-term rental business in Hilton Head, South Carolina.
Noise Regulations and Guest Communication
Ensure compliance with Hilton Head's noise regulations by informing your guests about the quiet hours between 10 PM and 7 AM. This can be done through a digital and physical house manual that outlines all the important rules and guidelines, including noise restrictions.
Comprehensive House Manual
Create a detailed house manual that includes essential instructions, such as Wi-Fi passwords, trash removal schedules, and safety information about pools or hot tubs. This manual should be easily accessible both digitally and in a physical format within the rental property.
Simplified Check-in Process
Streamline the check-in process by utilizing smart locks, which eliminate the need for physical key exchanges. Provide clear instructions on how to access the property, and consider including photos to help guests navigate the premises.
Parking Instructions
To avoid parking issues, include detailed parking instructions in your house manual, complete with photos. Ensure that guests are aware of the designated parking areas and any specific rules, such as the prohibition on street or grass parking.
By following these tips, you can enhance guest satisfaction, reduce potential issues, and maintain a positive reputation for your short-term rental business in Hilton Head, South Carolina.
Here is a brief list of house cleaning, and related maintenance providers in Hilton Head, South Carolina:
House Cleaning and Maintenance Providers
Housekeeping Services of Hilton Head, LLC
- Provides resort housekeeping, residential maid service, business janitorial services, carpet and window cleaning, and commercial laundry services.
Merry Maids
- Offers comprehensive home cleaning services, including whole-home solutions with proven methods and advanced techniques.
Maid For You of Hilton Head
- Provides cleaning services for vacation homes, private residences, and business properties. Services include departure cleans, mid-stay cleans, deep cleans, and emergency cleaning. They also offer commercial cleaning for various business locations.
HH Cleaning Services, LLC
- Provides commercial and residential cleaning services, including one-time cleaning, regular cleaning, housekeeping, interior cleaning, post construction cleaning, and commercial laundry services.
These companies are well-established and offer a range of cleaning and maintenance services tailored to different needs in the Hilton Head area.
Short-Term Rental Management Fees in Hilton Head, South Carolina
In Hilton Head, South Carolina, the management fees for short-term rentals typically range from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management, which includes guest communication, marketing, and maintenance, tends to be on the higher end of this spectrum, often ranging between 20% to 30%.
For instance, companies like Vacation Homes of Hilton Head and Beach Properties of Hilton Head offer comprehensive services that include dynamic pricing, social media marketing, and 24/7 emergency assistance, with fees ranging from 15% to 25% or even higher in some cases.
On the other hand, basic services such as on-call property management for repairs and housekeeping can be more affordable, sometimes starting at around 10% of the rental revenue. Additional fees may also apply for services like cleaning, repairs, or design enhancements.