🎯 STRisker: Bulletin - Folly Beach, SC
Folly Beach Revisits STR Rules with Small Tweaks but Big Implications
Fine-Tuning the Rules: Folly Beach Moves Forward on Short-Term Rental
Nearly two years after Folly Beach voters approved a citizen-led referendum capping short-term rentals, the city is still ironing out how that cap works in practice. At its December 9 meeting, Folly Beach City Council unanimously advanced the first reading of five targeted amendments aimed at clarifying and tightening the rules around renovations, taxes, and rental requirements, without changing the overall cap itself.
The 2023 referendum limits short-term rentals on the island to 800 properties. At the time of the vote, there were 1,125 rentals, representing roughly 43% of Folly Beach’s housing stock. While more than 185 homeowners remain stuck on a waiting list for permits, city officials acknowledged these proposed changes won’t significantly reduce that backlog. Instead, they’re designed to clean up administrative gray areas that have frustrated both homeowners and staff.
One of the most notable clarifications centers on renovations. Under the proposed ordinance, property owners who make upgrades that do not trigger the loss of a certificate of occupancy would not lose their short-term rental license. City officials said this change is meant to reassure owners who are improving their properties that routine renovations won’t jeopardize their permits, as long as inspections and documentation remain up to date.
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Related to that, owners with “investment short-term rental” licenses would be temporarily exempt from the requirement to rent their homes for at least 28 days per year while renovations are underway. This exemption would require proper approvals and documentation and mainly addresses rare cases where renovation work appears stalled for extended periods.
Another amendment tackles tax classification issues that have quietly caused problems for homeowners. Folly Beach has seen cases where errors in Charleston County’s property tax records which classify homes as either owner-occupied or investor-owned resulted in unintended permit losses. Going forward, the tax status at the time of a short-term rental license application would control the classification, protecting owners from bureaucratic missteps that could cost them a permit in a tightly capped system.
The proposed changes also bring the city into closer alignment with state law for military homeowners. The ordinance would eliminate the local 72-day rental limit for service members who receive a military tax exemption, provided the home is their primary residence.
Finally, the amendments would require emergency contact information to be clearly posted inside all short-term rental units, giving neighbors and guests a direct line during urgent situations.
The changes now await further readings and a final vote, but they underscore how deeply short-term rentals remain woven into Folly Beach politics an issue that continues to shape elections, policy debates, and community conversations across the island.
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