Thinking about renting your Isle of Palms second home when you are not in residence? You are not alone. With strong vacation demand and a small-island setting, the opportunity is clear, but so are the rules. In this guide, you will learn how licensing, taxes, safety, and day-to-day operations work on Isle of Palms, with links to official sources so you can verify every step. Regulations evolve, so always confirm details on the City of Isle of Palms site before you list. Let’s dive in.
Confirm eligibility first
Before you plan calendars or rates, make sure your property can be rented legally.
- Check municipal rules. Review the City’s policies and code to confirm that short-term rentals are allowed for your address and property type. Start with the City of Isle of Palms official website and the Code of Ordinances.
- Check zoning. Verify zoning and permitted uses for your parcel. Use the Charleston County GIS to view zoning layers, then confirm with City Planning.
- Check your HOA or condo documents. Private covenants may prohibit or limit rentals, even when the City allows them. HOA rules control inside the community.
- Consider flood and coastal constraints. Isle of Palms is a barrier island. Check your flood zone on the FEMA Flood Map Service Center and understand elevation, insurance, and evacuation factors.
Licensing and local registration
Most beach communities require owners to register rental activity and renew annually.
- City permits. Expect to apply for a city-issued rental authorization and to renew it on a regular schedule. You may need to provide owner information, a local contact, insurance, and occupancy details. Start with the City of Isle of Palms website for current forms and instructions.
- Business license. Many municipalities require a local business license for rental income earned in the city. Confirm the current requirement and process on the City site.
- Display and disclosure. The City may require you to display a license or permit number inside the home and include it in any online listing. Verify the exact posting rules in the Code of Ordinances.
Taxes you should expect
Short-term rentals typically trigger both state and local taxes in South Carolina.
- State taxes. The South Carolina Department of Revenue administers sales and accommodations taxes on short-term lodging. Register, obtain the appropriate tax accounts, and review filing schedules with the South Carolina Department of Revenue.
- County accommodations taxes. Charleston County administers local accommodations or tourism-related taxes and reporting. Review setup and remittance with the Charleston County Treasurer.
- Platform collection. Some listing platforms collect and remit certain taxes for you. Even so, you are responsible for verifying what is covered and filing any remaining returns. Confirm requirements with SCDOR and Charleston County.
Minimum stay, occupancy, and parking
Minimum-stay rules and occupancy limits can come from the City, your HOA, or both.
- Minimum stay. The City’s code defines rental categories and may set minimum stay lengths. Read the current language in the Code of Ordinances, and set your listing policies to meet or exceed the rule.
- Occupancy and parking. Maximum occupancy, on-site parking, and guest conduct standards are commonly regulated. Check for any posted-occupancy and parking requirements, and confirm what must be shown on-site or in your listing.
Safety, inspections, and guest information
Guest safety and clear instructions protect you and your neighbors.
- Safety equipment. Expect requirements for smoke detectors, carbon monoxide alarms, fire extinguishers, safe egress, and visible address numbers. Verify any inspection or documentation steps on the City of Isle of Palms website.
- Evacuation and storm readiness. Provide guests with hurricane and evacuation guidance, including routes and alerts. Use the Charleston County Emergency Management resources and include instructions in your house manual.
- House rules. Post quiet hours, trash and recycling guidance, parking rules, beach and dune protections, and your local contact information inside the home if required.
How to get set up: a simple checklist
Use this plain-language path to evaluate and launch your rental legally.
- Confirm eligibility and restrictions
- Review City allowances in the Code of Ordinances.
- Verify zoning for your parcel using the Charleston County GIS and follow up with City Planning.
- Read HOA or condo covenants for rental limits.
- Apply for City approvals
- Complete any required Isle of Palms rental permit or registration.
- Obtain a City business license if applicable. Start with the City of Isle of Palms website for current forms and timelines.
- Register for taxes
- Create tax accounts with the South Carolina Department of Revenue for state-level sales and accommodations taxes.
- Register with the Charleston County Treasurer for county accommodations taxes and filing.
- Prepare the property
- Install and test smoke and CO alarms, place fire extinguishers, verify exits, and post emergency procedures.
- Complete any required inspections and keep records.
- Set operating standards
- Post any required permit number and local contact information inside the home and in listings, if applicable.
- Align guest rules with City noise, parking, trash, and beach protections.
- Secure insurance and plan for storms
- Inform your insurer that the home will be used as a short-term rental and secure appropriate coverage.
- Review your flood zone on the FEMA Flood Map Service Center and maintain an evacuation plan.
- Keep records and renew
- Track bookings, permits, inspection reports, and tax filings.
- Calendar renewal dates and monitor City and County updates.
Operating well on a small island
Isle of Palms is neighborly and enforcement-focused, especially in peak season. A responsive local contact helps resolve noise, parking, or trash issues quickly. Make it easy for guests to follow the rules with clear, simple instructions and a one-page house guide. Good operations are the easiest way to avoid complaints and citations.
Penalties and enforcement
Cities typically enforce with fines, permit suspension, or revocation for repeated violations. Isle of Palms publishes its enforcement and penalties in the Code of Ordinances. If cited, you may be required to stop renting until you are back in compliance, and additional violations can increase penalties. Keep communication and documentation organized in case you need to show good-faith compliance.
Insurance and risk on the coast
Short-term rental activity changes your risk profile, and coastal hazards add another layer. Ask your insurance agent about vacation-rental endorsements, liability limits, and exclusions. If your property is in a Special Flood Hazard Area, your lender will likely require flood insurance. Verify your zone at the FEMA Flood Map Service Center, and document how guests should respond to watches and warnings.
A local, trusted path forward
If you want a clear-eyed view of rental potential as part of your purchase or sale strategy, start with the rules above, then layer in seasonal demand, HOA realities, and long-term ownership goals. For authoritative answers, consult the City’s public resources and speak with a local property attorney or accountant when setting up tax accounts. If you are weighing a purchase or evaluating value for a sale, schedule a confidential conversation with Robertson Allen for market guidance tailored to Isle of Palms and the surrounding islands.
FAQs
Are short-term rentals allowed on Isle of Palms?
- Yes, subject to City rules, zoning, and any HOA covenants; review current allowances in the Code of Ordinances and confirm with the City.
Do I need a City permit or license to rent my second home?
- Isle of Palms requires approvals for rental activity; start on the City of Isle of Palms website for application forms and renewal requirements.
Is there a minimum stay requirement on IOP?
- The City’s code defines rental categories and may set minimum stay lengths; check the latest text in the Code of Ordinances before setting your listing policies.
What taxes apply to vacation rentals on Isle of Palms?
- Expect state sales and accommodations taxes via the South Carolina Department of Revenue and county accommodations taxes via the Charleston County Treasurer.
Does my platform collect taxes for me on IOP?
- Some platforms collect certain taxes, but you remain responsible for full compliance; verify what is covered with SCDOR and Charleston County using their official pages.
What safety and inspection steps should I plan for?
- Install smoke and CO alarms, provide fire extinguishers and clear egress, and post emergency and evacuation instructions; confirm any inspections on the City of Isle of Palms website.
Can my HOA or condo association block short-term rentals?
- Yes, private covenants can prohibit or limit rentals even when the City allows them; read your HOA or condo documents in full and comply with both sets of rules.
