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Hilton Head Island Town Council Committee Proposed Short-Term Rental Ordinance

An ordinance that sets standards for how short-term rentals should operate on Hilton Head Island will move forward to Town Council for consideration at its May 3rd meeting. This ordinance applies to all of Hilton Head Island, including properties in Palmetto Dunes. We encourage you to read through the proposed ordinance and give us your feedback by April 27.

At a meeting on March 24, members of the council’s Public Planning Committee approved the following recommendations:

  • That Town Council review and approve a draft ordinance to establish performance standards for short-term rentals.
  • That the committee support developing a preliminary framework for the examination of high occupancy short-term rentals.

The proposed short-term rental ordinance addresses the following:

  1. Licenses, permits, fees and taxes.
    • Any owner who offers a property on the short-term rental market (offered for lease or occupancy for less than 30 days) must first obtain:
      • a short-term rental permit from the Town of Hilton Head Island ($250 annual fee for the short-term rental permit) and
      • a valid and current business license for a Short-Term Rental Property
    • Pay all applicable fees and taxes associated with the permit and business license
  2. General regulations.
    • Owner of the short-term rental property shall be available during the short-term rental period to respond to a complaint related to the operation or behavior of any rental guest
    • Owner of the short-term rental property shall be available by phone at all times during the short-term rental period and capable of being physically present or taking other responsive action within one hour of notification of a complaint
    • Owner shall display contact information in the unit of the person responsible for responding to complaints
    • All units must have smoke and carbon monoxide detectors, and fire extinguishers, as well as unobstructed escape routes in case of a fire
    • Owner shall notify renters of any swimming pool or hot tub and any related safety equipment prior to making the rental agreement
  3. Parking regulations.
    • This only applies to short-term rental properties not located in a community offering twenty-four (24) hour private security personnel available to resolve parking complaints and violations
    • Therefore, parking regulations in the ordinance do not apply to Palmetto Dunes
  4. Noise regulations.
    • Prominently display the Town of Hilton Head noise standards inside the short-term rental property
    • It should include:
      • it is unlawful to unreasonably disturb the peace and quiet of those in their homes and public places
      • Quiet hours are between 10pm and 7am
    • Shall communicate in writing the above provisions to the rental guest prior to their arrival
  5. Trash storage and removal.
    • Owners shall maintain a designated trash storage area for use by short-term renters that is fenced or screened
    • Owners shall prominently display instructions for managing trash disposal, including designated pick-up times and property owner association requirements
  6. Violations
    • If an owner is delinquent in the payment to the Town of any tax or fee, the property has been declared a nuisance, or the owner has been convicted of more than two violations in a 12-month period, then the short-term rental permit may be suspended or revoked.

Town staff recommended that an annual fee be assessed for short-term rental permits.  The fee would help recover costs associated with identifying short-term rental properties, ensuring compliance with permitting and business licenses requirements, and addressing violations.

Should Town Council approve the proposed ordinance as drafted, it would become effective on January 1, 2023. The period leading up to that date will allow staff sufficient time to develop and execute an implementation plan, said Anne Cyran, the Town’s Interim Community Planning Manager.

A recording of the Town’s March 24th meeting, the presentation made by staff, and the proposed ordinance are available on the Town’s website by clicking here. The public may submit feedback about short-term rentals through a link on the website.

Please also consider reaching out to your Town Council Representative, Tamara Becker, at TamaraB@hiltonheadislandsc.gov or other members of Town Council:

Click here for a draft of the Town of Hilton Head Island’s Short-Term Rental Ordinance.

The Association Wants Your Opinion on the Town’s Proposed Ordinance!