Hilton Head Island Short Term Rental Requirements

 

 Contributed by Justin Williams, Realtor®

 

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Purchasing property for rental income on Hilton Head Island can be both lucrative and enjoyable. However, as of January 2023, a new town ordinance requires all short-term rental property owners to obtain a business license, maintain a permit, and collect and pay taxes. Understanding these requirements is crucial to successfully managing your short-term rental.

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What is a Short Term Rental?

On Hilton Head Island, a short-term rental is any residential property rented for less than 30 days. All short-term rental permits are valid from January 1st through December 31st of the issuance year. Not all communities allow Short Term Rentals, so make sure you know for sure whether or not you can put a property on the Rental Market. Check with one of our experienced agents for more information.

Obtaining a Town Of Hilton Head Business License

Before applying for a short-term rental permit, you must first obtain a Town of Hilton Head Property Rental Business License. Here’s what you need to know:

1. Business License Fee: The fee is $10 as of 2023.
2. Annual Tax: License holders must pay an annual tax based on their gross rental revenues.
3. Tax Withholding: You are required to withhold 11% in state and local taxes for each rental. This includes:
   5% state sales tax
   2% state accommodation tax
   2% town beach preservation tax
   1% town accommodation tax
   1% Beaufort County Green Space tax

For more details, visit the Hilton Head Island government business license webpage.

Applying for a Short-Term Rental Permit

After obtaining your business license, you can register and complete your application for a short-term rental permit. Here’s how:

1. Registration: Visit the Hilton Head Island government short-term rental permit portal.
2. New User Registration: Register as a new user or link your existing business license profile to your rental property account.
3. Site Plan: A site plan is required for single-family residential properties. Villas/condos do not require a site plan.
4. Permit Fee: The permit fee is $250 per property as of 2023.
5. Approval Time: Application approval may take up to 30 days. You will be notified by email about the status of your application.

Requirements for Short-Term Rental Permits

Simply applying for and obtaining a permit is not enough. Hilton Head Island maintains specific requirements for short-term rental owners:

• Availability: The owner or rental agent must be available by phone at all times.
• On-Site Action: The owner or rental agent must be able to take responsible action within one hour of a complaint and prominently display contact information in the rental property.
• Outreach Materials: Display any town-provided outreach materials.
• Property Maintenance: Regularly inspect and maintain the property to ensure compliance.

• Notify Guests: Inform guests of the maximum number of vehicles allowed before making any agreement.
• Parking Spaces: Ensure parking spaces are at least 9 feet by 18 feet and on an improved surface.
• Off-Site Parking: Guests should not park on the street or grass.

• Display Instructions: Provide clear trash removal instructions, including pick-up times and any property owner association requirements.
• Storage Area: Maintain a designated, fenced, or screened trash storage area. Ensure trash containers are not visible from the street and are placed curbside no more than 24 hours before and removed within 24 hours after pick-up.

• Inform Guests: Notify guests of the town’s noise regulations before making any agreement.
• Display Regulations: Prominently display the following:
  • It is unlawful to unreasonably disturb the peace in homes and public places.
  • Quiet hours are between 10 pm and 7 am, but noise regulations are enforced 24/7.

• Smoke and CO Detectors: Maintain fully operational smoke and carbon monoxide detectors.
• Fire Extinguishers: Keep at least one fully operable and charged fire extinguisher.
• Escape Routes: Ensure unobstructed escape routes in case of fire.
• Pool Safety: Inform guests in writing about any pool or hot tub and related safety equipment before making any agreement.

For more information on short-term rental permits, requirements, and site plans, visit the Town of Hilton Head's short-term rental permit website.

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By following these guidelines, you can ensure your short-term rental complies with local regulations, providing a safe and enjoyable experience for your guests while maximizing your investment. If you have any questions about the permitting process or need assistance finding a property suitable for short-term rentals, our team at Luxury Homes of Hilton Head is here to help. Contact us today to get started. Sign up with us today and let our experts guide you through ways to make sure you're getting the most out of your valuable investment!