Short-term rentals in Kiawah Island, explained properly.

Section 14-502(3) sets the annual application fee for the rental business license, including lot applicants, at $500.00 for any property in the R1 or R2 zoning districts subject to caps and $200.00 for all other properties. If a license is not granted because licenses are capped, the application fee is suspended until the application is approved and a license is awarded. All fees related to STR business licenses must be paid in full at the time of application. Section 14-504(b) adds a $1,000.00 late fee, plus all applicable fees, for a renewal request submitted on or after May 1. The fee is read from the code text; the section's history note ends with Ord. No. 2020-07 (8-4-2020) and no separate Town fee schedule was read, so the effective date of each amount is not confirmed.

A short-term rental business license expires annually on April 30th, and license holders have until April 30th to renew without penalty. From May 1, a renewal request for an R-1 or R-2 property whose cap has not been reached is renewable with the $1,000.00 late fee plus applicable fees; for properties in all other zones the license is renewable with the same late fee. If an R-1 or R-2 property is subject to caps and no license can be issued solely because of the caps, a new application can be filed and the applicant goes on the waiting list. Late renewals after the close of business on April 30th are not permitted for non-conforming use properties previously holding a valid STR business license, including destination or vacation clubs. At renewal the license holder must provide proof of accommodation tax payments for the previous year, and failure to pay all required accommodation taxes is grounds not to renew.

Section 14-505(1)(e) says a license may be subject to expiration or may not be renewed should an owner report under $3,000.00 of annual rental revenue. In that case the owner needs to demonstrate that the short-term rental property was available and advertised for rental throughout the previous year. The code says may, so the Town's decision is discretionary on the text read.

Section 14-502(5) makes the STR owner responsible for reporting all gross income generated by each STR property under sections 4-304 and 4-306 of the Town's Municipal Business License Ordinance. The report can come through a property management company's application covering total gross income, or, if the manager reports only the income it generates, through a separate business license application from the owner covering the rest. Failing to fully report all gross income is a violation of section 14-507(a)(2) and of section 4-307 of the business license ordinance. Sections 4-304, 4-306 and 4-307 were not read.

Section 14-502(2) requires a rental business license application for each STR, completed by the owner or its authorized agent, signed as a legal and binding agreement acknowledging that all town ordinances and rental regulations will be adhered to for the license's duration, and submitted and reviewed annually. Section 14-502(4) requires an applicant who is not the owner to submit a copy of the owner's written authorization and, where the property is leased to the applicant, a copy of the lease.

Section 14-503(d) requires all first-time STRs applying for a license, and any property requesting a change in the number of bedrooms or in parking capacity, to pass a rental property inspection before the STR rental business license is issued. Section 14-503(e) adds that all rental properties must remain compliant with all currently adopted codes and ordinances and are subject to inspection, with proper notification, at any time.

The chapter defines a short-term rental property as an accommodation rented or leased for less than 30 consecutive days, used in a manner consistent with the residential character of the dwelling, when the property is assessed for county property tax purposes as residential property. Properties available for rent for a period not to exceed 14 calendar days in a calendar year are exempt from the chapter. A property leased long-term and re-let short-term by the lessee is an STR and both lessor and lessee are subject to the chapter. Vacation time-sharing plans are not short-term rentals and are not allowed under section 14-201 of the Town code, which was not read.

Section 14-507(a)(7) makes it a violation to rent out only a portion of the rental or individual rooms of a property, including detached homes, villas, cottages and any other property designation, and says no rental business license will be issued unless the subject property is to be rented in its entirety.

Section 14-507(a)(6) makes it a violation to advertise or rent separate guest houses or pool houses as an independent rental unit. The code says such units can be included under a rental business license issued to a single address but cannot be rented as a stand-alone unit.

Section 14-506(c) sets the maximum occupancy for all short-term rental properties at two occupants per code-compliant bedroom, plus two additional occupants per dwelling unit; children under two are not included. The number of bedrooms is based on Charleston County property tax records; an applicant claiming more bedrooms must have the Town code enforcement office review and decide before renting, and temporary conversion of dining rooms, living rooms, studies and similar rooms into bedrooms for rental is not permitted. Expanding the allowable occupancy or parking without a new license, or advertising more overnight occupants than permitted, is a violation.

Section 14-506(d) limits overnight vehicles for each single-family dwelling unit to the parking spaces defined on the rental application. Vehicles may park only on permanent paved or gravel parking surfaces approved by the town or other entity having jurisdiction; parking on grass or landscaped areas is prohibited at all times. Vehicles must allow free passage of emergency vehicles, and overnight parking in driveways must allow emergency vehicles to within 25 feet of the residence. Where a garage is counted toward allowable parking, access to it must be provided whenever the STR is operating. Parking for villa units must be in parking lots integral to the villa complex. Pickups greater than one-half ton, cargo vans greater than 12 passengers, recreation vehicles, buses, trailers, boats and other large vehicles are prohibited from parking overnight at residential dwellings, and vehicles may not be used for sleeping. Driveway clearance for fire trucks must be a minimum of ten feet wide for straight drives with a height clearance of 13.6 feet. Subsection (d) applies at all times, including when the property is in use by the owners.

Section 14-506(b) requires an owner or authorized agent who does not reside within the Charleston Metro Area to identify one or more local contacts authorized and able to respond to emergencies, complaints and inquiries from entities having jurisdiction. A local contact must be present within the Charleston Metro Area and available to respond within two hours after notice of an emergency from a guest or a town employee during any 24-hour period. The owner or authorized agent must have a 24-hour contact phone number posted in a visible location within each unit. A change of local contact must be reported in writing to the Town of Kiawah Island business license department within three business days. The code defines an authorized agent as someone normally available and authorized to respond to any issue within two hours.

Section 14-503(c) sets these four required items for the advertisement of any STR property. Under section 14-503(b) no owner or agent may advertise an STR in a way that would violate the chapter, and the owner and authorized agent are jointly responsible for the accuracy of advertising. Advertising a rental for more overnight occupants than permitted, or advertising before complying with the chapter, is a violation under section 14-507.

Section 14-506(a) has the Town promulgate and distribute rules for rental of residential property to property management companies and owners; the owner or authorized agent furnishes a copy to each rental guest and posts a copy in a visible location within each rental unit. Section 14-503(a) makes the STR owner solely responsible, directly or through an agent, for notifying and educating guests of all applicable STR rules. Section 14-503(e)(9) requires each unit to display the property's address and the owner's or agent's contact information inside the unit in a visible place.

Section 14-503(e) lists inspection items that include smoke alarms (each bedroom and the hall leading to the bedroom), a carbon monoxide detector, sprinkler system documentation of an annual inspection where a sprinkler system exists, a fire extinguisher meeting 1-A:10-B:C under the kitchen sink in all rental units, verification of parking spaces and bedroom count, structural elements (decks, stairs, handrails and guardrails including boardwalks), enclosed trash receptacles, posted address and contact information, and minimum ceiling heights (not less than seven feet for habitable space, hallways and basement portions containing these spaces, and six feet eight inches for bathrooms, toilet rooms and laundry rooms, with listed exceptions). The list is not limited to these items.

Section 14-506(e)(1) requires rental dwelling units to subscribe to back-door trash collection two times per week, including recycling, and to store receptacles in an enclosed garage or approved screened enclosure so they are not visible from the street. Villas use provided dumpsters with pick-up frequent enough to avoid overflow, stored on an approved screened pad. Under subsection (f), bicycles and beach gear may not be visible from the street side or adjoining properties from dusk to dawn, and clothing or beach towels may not be draped over railings or deck chairs or be visible beyond property lines at any time. Under subsection (g), exterior lighting must comply with the Town's beach lighting chapter (article 16, chapter 1), which protects sea turtle hatchlings and was not read. Subsections (d) to (g) apply at all times, including when the owners use the property.

Section 14-507(a)(8) lists operating a commercial business in a STR property as a violation, with catering, telemarketing and distribution of goods as examples that are not a complete list. Section 14-507(a)(9) separately makes pruning or altering vegetation and dunes without the required permits a violation.

Section 14-508(a) sets these penalties for any person violating a provision of the chapter and says punishment does not relieve the offender of liability for delinquent taxes, penalties and other costs. The owner is not relieved of personal responsibility for noncompliance by an authorized agent, local contact, renter or guest, and a property management firm or authorized agent is jointly and severally liable for violations on its managed STRs in the Town.

Section 14-509 makes failure of the licensee to comply with any section of the chapter grounds for suspension or revocation, conducted by the treasurer or designee under the municipal business license chapter (section 4-315, not read). A property with three violations during any 12-month rolling period, found guilty by admission or by the municipal judge, is cause for revocation, and the owner or agent may reapply for a new license no sooner than 12 months after revocation. On notice of revocation or suspension the owner must immediately stop operating and all advertisements for future rentals must cease; fines are levied if the property is advertised or occupied afterward.

Section 14-510 lets a person aggrieved by the Town's decision to revoke, suspend or deny a rental business license appeal to the town council. The written appeal sets out a concise statement of the reasons, and timely filing stays the revocation, suspension or denial pending the council's decision. The council considers the appeal in an open hearing at a regular or special meeting within 30 calendar days after receipt of the request.

South Carolina charges a 7% tax on rent for rooms, lodgings or sleeping accommodations furnished to transients, including rentals of a residence (S.C. Code § 12-36-920(A)). The South Carolina Department of Revenue (SCDOR) describes this as 5% sales tax plus 2% accommodations tax, together with any local sales and use taxes that SCDOR collects for counties. SCDOR's ST-575 chart lists the total accommodations rate for each county and city.

SCDOR applies accommodations tax to sleeping accommodations of any kind rented to guests for less than 90 consecutive days, including rooms or spaces in your own home and condos. Rentals to the same person for 90 continuous days are not taxed. A home with six or fewer bedrooms is exempt only when the owner or operator lives on the same premises at the time and does not use a rental agency or online travel company to rent the rooms.

SCDOR says owners who book short-term rentals directly must hold a Retail License to file and pay accommodations tax, with one license for each rental location. If you rent only through a property management or online travel company that takes the reservation and the payment, that company remits the tax for the full booking and you do not need a Retail License. A license is also not required if you rent a room or space for no more than one week each calendar quarter, but the tax must still be filed and paid once a year.

Accommodations tax returns and payments must be filed electronically (SCDOR's MyDORWAY or approved software), by the 20th of the month following the end of the filing period.

Under the Local Accommodations Tax Act, a city or county may add a local accommodations tax of up to 3% on stays taxed under S.C. Code § 12-36-920(A). A county may not charge more than 1.5% inside a city or town without that municipality's consent. SCDOR notes that many local accommodations taxes are not administered by SCDOR, so owners must contact the city or county where the rental is located to report them.