Thinking about buying a Folly Beach home and renting it by the week or weekend? The rules can shape your returns, your guest experience, and your exit strategy. You want clarity before you write an offer. In this guide, you’ll learn what to verify about permits, transfer rules, occupancy, parking, taxes, and enforcement, plus the exact places to confirm details with the city and state. Let’s dive in.
What counts as an STR
A short-term rental is typically a stay of less than a month, but the exact threshold and definitions are set by city ordinance. To avoid confusion, read the definitions section in the Folly Beach municipal code and confirm how the city classifies your intended use. Start with the Folly Beach Code of Ordinances.
If your plan involves a specific dwelling type, such as a single-family home, condo, or an accessory unit, confirm applicability and any exemptions. When in doubt, contact the city directly through the City of Folly Beach website for written clarification.
Permit basics to expect
Folly Beach regulates short-term rentals through permit or registration processes. The city will outline how to apply, what to submit, when to renew, and how enforcement works.
Application and renewal
Permit procedures are typically managed by planning, zoning, building inspections, or business licensing. Verify where to apply and the current fee schedule with the City of Folly Beach. Expect to provide ownership information, a site or floor plan, a parking layout, proof of tax registration, and a 24-7 local contact. Confirm renewal timing and any late penalties in the Code of Ordinances.
Inspections and posting
Many coastal cities require life-safety inspections before issuing a short-term rental permit and may require you to display the permit number in the property and in advertising. Review Folly’s requirements in the ordinance and request any inspection checklists from the city so there are no surprises during onboarding.
Local responsible agent
Most resort communities expect a local, on-call contact who can respond to complaints and emergencies. Ask the city if Folly requires a local agent, the maximum response time, and how they verify compliance. If you plan to use a manager, confirm they meet the city’s criteria.
Caps and location limits
Some beach towns cap the number of short-term rental permits citywide or by zoning district, and they may use waitlists, lotteries, or “grandfathered” status. To understand whether caps or geographic limits apply to your address, check the relevant sections of the Folly Beach Code of Ordinances and request current permit counts or maps from planning staff. If caps are reached, ask how new permits are issued and whether any exceptions exist.
Buying a property with an STR
Whether an existing permit transfers with a sale can materially affect value and cash flow. Rules vary by city and can change.
- Ask the seller for a copy of the current Folly Beach STR permit and permit number, then verify it with the city.
- Request written confirmation from the city on whether the permit is transferable, whether reinspection or reapplication is required, and deadlines tied to closing.
- If transfer is not allowed, confirm whether a new permit can be issued at your address under current caps or zoning.
Nontransferable permits or frozen caps can limit future income potential. Get the city’s guidance in writing before you remove contingencies.
Occupancy, parking, and house rules
Occupancy and parking standards are central to STR compliance and neighborhood relations. The code will specify how maximum occupancy is calculated and how many on-site spaces are required. It may also limit on-street parking and set rules for trash, quiet hours, and posted house rules.
- Verify the occupancy formula and any guest limits for your property type in the Code of Ordinances.
- Measure on-site parking and confirm how the city counts spaces. Ask whether on-street parking is allowed for guests and how many vehicles are permitted.
- Review nuisance standards, including noise, trash collection, and signage expectations, so your manager can train guests and avoid complaints.
Taxes and licensing you will need
Short-term rental operators are typically responsible for a city business license and multiple tax registrations. In South Carolina, you should register for lodging-related taxes with the state and confirm any county-level accommodations or hospitality taxes.
- Register and confirm filing obligations with the South Carolina Department of Revenue.
- Check Charleston County for any county tax or administrative requirements at the Charleston County website.
- Confirm with the City of Folly Beach whether a local business license is required and how often it must be renewed.
Your booking platform may collect some taxes on your behalf, but you are responsible for ensuring complete and accurate registration and remittance.
Enforcement and penalties to understand
Beach towns actively enforce STR rules. Verified complaints can lead to warnings, fines, suspensions, or revocation. Ask the city for the current penalty schedule, how complaints are logged, response timelines, and appeal rights. The specifics should be detailed in the Folly Beach Code of Ordinances.
If you are evaluating a property that has operated as an STR, request the city’s record of any prior complaints or violations. A clean enforcement history can be a good sign; repeated issues may signal management or design problems that require budget and planning to fix.
Practical buyer checklist
Before you write an offer, verify these items and gather documentation:
- Confirm whether the property has a valid Folly Beach STR permit. Obtain the permit number and a copy of the permit; verify with city records.
- Confirm whether the permit transfers to a new owner. Ask the city to outline any required inspections, reapplications, or fees. Get it in writing.
- If there is no current permit, ask planning staff if new permits are available for the parcel’s zoning district and whether caps or waitlists apply.
- Verify occupancy limits and required on-site parking for the unit. Measure spaces and clarify whether on-street parking counts.
- Request HOA or condominium documents to confirm whether the community allows short-term rentals and under what conditions.
- Ask the city for the property’s enforcement history, including any recorded complaints, fines, or suspensions.
- Check safety requirements in the STR ordinance, such as smoke and CO detectors, egress, and any posting requirements. Request copies of prior inspection reports if available.
- Confirm state and local tax registration. Request proof of recent filings to confirm compliance.
- Identify your 24-7 local contact or property manager and confirm they meet any city requirements for response and proximity.
- Check flood zone status and insurance availability, especially for coastal properties where specialized coverage and premiums may apply.
- Seek written confirmation from planning or code enforcement that summarizes the parcel’s zoning, current permit status, transfer rules, and any caps.
Who to contact and next steps
Here is where to verify each step directly with official sources:
- Review definitions, permits, and penalties in the Folly Beach Code of Ordinances.
- Contact city planning, zoning, code enforcement, or business licensing through the City of Folly Beach website for parcel-specific answers and written confirmations.
- Register and confirm state lodging tax requirements with the South Carolina Department of Revenue.
- Check county taxes or administrative steps with Charleston County.
When you assemble your offer, include contingency language for STR permit verification, transferability, and caps. Ask the seller to provide permits, inspection reports, tax registrations, and HOA documents as part of your due diligence.
A local, boutique approach to STR buying
Buying a Folly Beach home with STR potential is as much about regulatory clarity as it is about views and beach access. You deserve a calm, thorough process that protects your goals and timeline. If you want help pressure-testing a property against Folly’s current rules, coordinating calls with the city, or sourcing a qualified local manager, our boutique team can guide every step.
Ready to evaluate a specific address or plan a private tour? Connect with Tricia Peterson for a confidential consultation tailored to your goals.
FAQs
Are short-term rentals allowed in Folly Beach and what do I need?
- Yes, Folly Beach regulates STRs through local ordinances and permits. Review the Folly Beach Code of Ordinances and confirm current application steps with the City of Folly Beach.
Does a Folly Beach STR permit transfer to a new owner at closing?
- Transfer rules depend on the ordinance and current policy. Ask planning or code enforcement for written confirmation and cite the relevant section of the Code of Ordinances.
What are the occupancy and parking limits for a Folly Beach STR?
- The ordinance sets the method for calculating occupancy and required on-site parking. Verify the exact standards in the Code of Ordinances and confirm details for your parcel with the city.
What taxes must I collect and file for a Folly Beach vacation rental?
- Register for lodging-related taxes with the South Carolina Department of Revenue and confirm any county or city obligations with Charleston County and the City of Folly Beach.
How can I check a property’s STR complaint or violation history in Folly Beach?
- Request records from the city’s planning or code enforcement staff via the City of Folly Beach and ask for the current penalty schedule in the Code of Ordinances.
