Folly Beach Short-Term Rental Regulations

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Permit & Licensing

Investment Short Term Rental (ISTR) Business License (also issued as Medical Hardship ISTR (MISTR) for qualifying hardship cases, or as a Provisional STR (PSTR) transitional license for purchasers of an existing licensed STR)

This permit type does not require primary residence.

Owner-Occupied Short Term Rental (OSTR) Business License

The property must be your primary residence. This means investment properties are not eligible for this permit type.

Application Process

Renewals are processed directly through the City of Folly Beach (not via a third-party portal); required renewal documents include Charleston County property records showing ownership and bedroom count, proof of prior-year Accommodations Tax reporting/payment, proof of the 28-night minimum stay requirement, date of last septic inspection, and gross revenue for the prior calendar year; payment by credit card (3% surcharge) or check; applications/renewals submitted by email or in person at City Hall

Note: Document requirements vary by permit type. See individual permit sections above for eligibility details.

Tax Obligations

Combined rate: 13% of gross rental income.

Collection: If directly booking short-term rentals, the owner/operator must hold a Retail License and file/pay Accommodations Tax directly

Filing: Filed and paid electronically; returns due by the 20th of the month following the end of the filing period

Rental Limits

Folly Beach annual day limit: 72 days–unlimited (varies by permit type).

Zoning & Restrictions

Check with local government

Insurance & Safety

Insurance

Folly Beach does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage. No insurance requirement specified.

Safety & Operating Requirements

• Date of last septic inspection must be reported as part of registration renewal

Penalties for Non-Compliance

• Civil fine of up to $500 per violation; each day of continued violation is a separate offense
• Denial, revocation, suspension, or non-renewal of the business license (§§ 110.14/110.15, appeal under § 110.16)
• Three-strike system: violations result in strikes; 3 strikes within a rolling 12-month period triggers revocation/suspension/non-renewal of the STR business license
• Progressive strike notices: 1st strike = warning, 2nd strike = warning of pending suspension/revocation, 3rd strike = initiation of revocation procedures
• Noise ordinance violations on the property result in a notice strongly encouraging the owner to install noise monitoring

Compliance Checklist

Follow these steps to legally operate a short-term rental in Folly Beach:

1. Determine your permit type. Folly Beach has 2 permit types. Identify which applies to your property (Investment Short Term Rental (ISTR) Business License (also issued as Medical Hardship ISTR (MISTR) for qualifying hardship cases, or as a Provisional STR (PSTR) transitional license for purchasers of an existing licensed STR), Owner-Occupied Short Term Rental (OSTR) Business License).
2. Meet safety requirements. Date of last septic inspection must be reported as part of registration renewal.
3. Apply for your STR permit. Submit application + $245 fee. See permit types above to determine which applies.
4. Register for tax accounts. Set up lodging tax accounts with South Carolina Department of Revenue (SCDOR).
5. Collect and remit taxes. 13% on all bookings.
6. Renew annually. $245 renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Folly Beach?

Yes. Folly Beach requires a short-term rental permit to operate an Airbnb or Vrbo, and there are 2 permit types — one requires the property to be your primary residence, and another allows non-owner-occupied (investment) use. See the permit types above to find which applies to your property.

How much does a short-term rental permit cost in Folly Beach?

A short-term rental permit in Folly Beach costs $245.

Does Folly Beach require a short-term rental to be your primary residence?

It depends on the permit type. At least one Folly Beach permit requires the property to be your primary residence, while another allows non-owner-occupied (investment) use — see the permit types above.

How many days a year can you short-term rent in Folly Beach?

Folly Beach's annual rental limit depends on the situation: 72 days–unlimited (varies by permit type).

What taxes do you pay on a short-term rental in Folly Beach?

Short-term rental stays in Folly Beach are subject to a combined 13% in lodging taxes. This combines 6% SC State Sales Tax + 2% SC State Accommodations Tax + 1% Charleston County Local Option Sales Tax + 1% Charleston County Transportation Tax + 2% City of Folly Beach Municipal Accommodations Fee (§ 113.03(A)) + 1% City of Folly Beach Beach Preservation Fee (§ 151.39(C)). The host is responsible for collecting and remitting them.

What happens if you run a short-term rental without a permit in Folly Beach?

Operating without a permit can cost up to $500 per violation, with each day of continued violation treated as a separate offense.