Hilton Head STR Rules: What You Need to Know!

Hilton Head STR Rules: What You Need to Know!

So, you’re thinking about diving into the short-term rental (STR) scene on Hilton Head Island? It’s a fantastic place, no doubt, with those gorgeous beaches and golf courses drawing folks in year-round. But, like anything popular, it’s got its own set of rules now. The town’s been busy updating its regulations to keep the island’s charm intact while still welcoming visitors. If you own property there or are looking to get into the STR game, you’ll want to pay attention to this.

Understanding the Island’s STR Regulations

Hilton Head Island isn’t just a vacation spot; it’s home to many, and the town council wants to make sure everyone’s quality of life is considered. That’s why, as of January 2023, a pretty detailed Short-Term Rental Ordinance is in play for any private residential property rented for less than 30 days. It’s all about finding that balance, you know?

Permits and Licenses: The Nitty-Gritty

First things first, you absolutely need a permit from the town to legally operate an STR. This permit costs $250 annually and needs to be renewed between November and December for the following year. On top of that, you’ll need a business license. The application fee is just $10, but there’s an annual Business License Tax based on your previous year’s earnings, due by the end of April. And get this: you can’t even apply for the business license without that STR permit first. It’s a bit of a process, but essential.

Owner and Agent Duties

If you’re an owner or have an agent handling things, you’ve got responsibilities. You’ve got to be reachable by phone at all times and ready to respond to any complaints about the rental property, whether it’s you or your agent, within an hour. That means being able to get there or sort it out quickly. Make sure your contact info is visible inside the rental, and give your guests any town materials about the rules. Keeping the property in good shape and passing inspections is also part of the deal.

Keeping the Peace: Noise and Community Standards

Nobody likes a noisy neighbor, right? Hilton Head is no different. Owners have to let guests know in writing about the island’s noise rules before they book. Inside the rental, it’s a must to display the rules: basically, don’t disturb the peace. Quiet hours are from 10 PM to 7 AM, but honestly, the town can enforce noise rules pretty much anytime, 24/7. It’s all about respecting the neighbors and keeping things chill.

Taxes: Don’t Forget ‘Em!

You’re legally required to collect and send in state and local accommodation taxes. Usually, that’s about 10% total. Good news for some: starting in 2025, platforms like Airbnb and VRBO automatically collect and send the state sales tax and hotel occupancy tax. But, you’re still on the hook for making sure the local taxes, like the town’s Accommodations Tax and the Beach Preservation Fee, are collected and remitted correctly. You’ll need an account with the town’s Revenue Services Office and file lodging tax returns quarterly. Even if Airbnb handles some of it, VRBO doesn’t automatically collect local taxes, so double-check! There are some exceptions, like if you rent for less than 15 days a year, but it’s always best to be sure you’re covered.

Gated Communities: Their Own STR Rules

Hilton Head Island has a bunch of gated communities, and here’s where it gets a little more complex: each one can have its own rules about short-term rentals. Some have outright bans, while others have specific limitations.

Communities with STR Restrictions

• Hilton Head Plantation: This is the biggest community, and they flat-out don’t allow short-term rentals. The minimum lease is six months.
• Indigo Run: Yep, another ban here to keep the neighborhood feel.
• Long Cove: Similar to Indigo Run, they’ve banned STRs and require a minimum six-month lease.
• Leamington (in Palmetto Dunes): While Palmetto Dunes is generally okay with STRs, Leamington has restrictions – no STRs for houses, but villas are fine.
• Sea Pines: STRs are allowed, but watch out for specific areas with restrictions. Plus, you need to register annually with the Sea Pines Property Owners Association, separate from the town’s requirements.
• Palmetto Dunes: Generally allows STRs, except for houses in Leamington. Owners need to register annually with the Palmetto Dunes Property Owners Association, which has its own fees.
• Windmill Harbor: This one also prohibits short-term rentals, aiming for a private residential vibe.

Other Communities to Note

• Shipyard: STRs are permitted here, and you just need a one-time registration with no fees.
• Forest Beach and Folly Field: These areas outside the gated communities have seen a rise in STRs. They tend to have less HOA oversight, which has led some residents to complain about parking, traffic, and noise.

Resident Concerns and the Future of STRs

It’s not all smooth sailing. Many long-term residents are concerned about how the increase in STRs is changing the island’s character. They worry about noise, traffic, and parking issues, feeling that the constant flow of visitors can disrupt the close-knit feel of their neighborhoods. Some residents are even fighting new developments they believe will become STRs, fearing they’ll bring more disturbances.

Homeowners’ Associations (HOAs) and covenants also play a big role. These private agreements can have their own STR rules, sometimes banning them entirely. Many residents feel these HOA rules are the best way to handle STR issues. Economically, STRs bring in tourism revenue, which is great for businesses. But property owners also see them as a way to cover high property costs. Still, there’s a strong sentiment among residents that preserving the island’s peaceful, residential atmosphere is key, and they worry that too much commercialization is a threat.

The conversation about STRs on Hilton Head is ongoing. The town council is always looking at the regulations and encourages residents to share their thoughts. It seems like things will continue to evolve as the island community works to find the best path forward.

For more details, check out the Town of Hilton Head Island’s official STR page and the Palmetto Dunes Property Owners Association for their specific rules.