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Short Term Rental Regulations

The Town of Hilton Head Island has put into effect a short term rental ordinance that applies to any privately owned properties used as vacation homes and short-term rentals (rentals less than 30 days).  If you own a short term rental property the following rules and regulations will apply:

1. Short Term Rental Property owners are required to have a permit for each rental property owned

– This includes all residential properties rented for less than 30 days at a time.
– The Town is accepting applications through its online portal.
– The permit application process includes compliance in the areas of Noise, Trash, Parking, Response Time and Safety:                            Short Term Rental Permit Requirements for Owners

Each year, the Short Term Rental Permit must be renewed.  In 2023, the fee is $250 per property.

Short Term Rental Permit Information and Portal on Town Website

2. Short term rental property owners are required to have a business license

– You must have a short-term rental permit before you can register for a business license.
– Whether you own one rental property or multiple properties, only one business license per owner is required.
– The business license application fee is $10.

Each year, a Business License Tax must be paid by the end of April.  Business License Tax is calculated on gross revenue from the previous calendar year per the following example:

For a rental property with $149,300 in Gross Rental Revenue:

  • Round up to nearest thousand, $150,000
  • Pay $92.50 for first $2,000 of rental revenue
  • $150,000 - $2,000 = $148,000 (remaining gross revenue balance)
  • Divide remaining balance ($148,000) by 1000 and multiply that number by 1.7
  • $148,000/1000 = 148 
  • 148 x 1.7 = $251.60
  • Add $92.50 + $251.60 = $344.10 (Busines License Tax Due)

Short Term Rental Business License Information and Application on Town Website

3. Short-term rental property owners are required to collect 10% state and local accommodations taxes

– This is for anyone renting residential property to the same person for less than 90 days.
– You may collect and remit the taxes yourself or have a Licensed Property Manager collect and remit the rental taxes for you.
– The state and local taxes are collected on gross rental income.
Destination Vacation collects and remits all accommodations taxes, on behalf of the property owner, for all of our properties.

4. (Sea Pines Property Owners, only)  Sea Pines/CSA Rental Registration Program

– This final regulation applies to residential property owners in Sea Pines that rent their homes at any time during the calendar year. 
– Owner must register rental property with Sea Pines and pay the annual fee associated with the # of bedrooms in the home or villa.
– Rental Registration Program fee is non-transferrable, non-refundable and not able to be prorated in the event of a property changing ownership.

2023 Rental Registration Fee

  • # of Advertised Bedrooms:  Annual Fee
  • One to Two Bedrooms:       $300
  • Three to Four Bedrooms:   $700
  • Five or More Bedrooms:   $1,000

Sea Pines/CSA Rental Registration Program Information (FAQs, Fees, Registration Process, etc.)

5. (Palmetto Dunes Property Owners, only)  Palmetto Dunes Short Term Rental Registration

-This annual registration applies to residential property owners who rent their homes in the short-term rental market for any period of less than 90 continuous days for monetary consideration within Palmetto Dunes.

-Registration provides the necessary owner and property management information allowing the POA to quickly contact the appropriate individuals about property situations and guest needs.

-This annual registration is mandatory and remains valid from January 1st through December 31st. Registering your short-term rental property with the POA is both free and a separate requirement from the permit and business license required by the Town of Hilton Head. To ensure compliance with the Association, your 2024 short-term rental registration must be submitted by April 30th.

Palmetto Dunes Short-Term Rental Registration Portal