Isle Of Palms, South Carolina

Isle of Palms permits short term rentals citywide and there is currently no cap on the number of licenses. Owner occupancy and primary residence are not required. Every owner renting a residential unit must hold a Short-Term Rental Business License from the city Building, Planning and Zoning Department. The fee is tied to the prior year’s gross rental income: $450 on the first $2,000 plus $4.60 per additional $1,000. Licenses are annual and must be renewed by April 30 to avoid penalties, and owners file a Rental Revenue Affidavit and year end revenue statements. Guests staying 30 days or less pay roughly 14% in combined lodging taxes, which include state sales tax, state accommodations tax, local accommodations taxes, and a 1% Isle of Palms Beach Preservation Fee. Airbnb and VRBO remit the state taxes automatically, but owners remain responsible for local and county taxes. Detached homes must be rented in their entirety, and owners cannot offer private or shared individual rooms. Overnight occupancy is limited to two people per bedroom plus two, up to 12, and daytime occupancy is capped at twice the overnight figure or 40 people, whichever is less. Owners must provide a 24/7 contact and a local representative who can be on site within one hour of a complaint. Enforcement is rated moderate, and a license can be revoked after five or more complaints of unlawful activity in a calendar year. In November 2023, voters rejected a referendum by about 54% that would have capped licenses at 1,600 for investor and second home properties, so no cap is in place. Confirm current rules with the city before buying.