New rules on horizon for Hilton Head short-term rentals. Here’s what they say
Tighter regulations for short-term rentals on Hilton Head may be just around the corner.
The Hilton Head Community Services and Public Safety Committee discussed new amendments to the town’s short-term rental ordinance at a special meeting Monday.
For Hilton Head leaders, the new regulations are about tackling “quality of life” issues for residents.
“It’s not the put anybody out of business,” said Mayor Alan Perry, who stepped up to the podium to give comments during the meeting. “First and foremost, it’s about the safety and security of our residents. When we hear about challenges of residents being able to pull out of their driveway in the morning, that’s a quality of life issue.”
This week’s discussion on short-term rental rules comes nearly eight months after council members failed to come to a consensus on proposed amendments at a February meeting.
How we got here
As short-term rentals increase in numbers in Hilton Head neighborhoods, residents have voiced concerns about parking, noise, trash and a loss of a sense of community.
Ward 4 council member Tamara Becker has long been vocal about resident issues. A resident of Bradley Circle, she chose to run for town council after watching her once-quiet neighborhood become transformed into a tourism hotspot.
“The quality of life on Hilton Head for residents, and frankly the visitor experience, has been diminished over time,” Becker said the Monday meeting.
In some neighborhoods, short-term rentals make up as much as half of all residences. They are found in high concentrations in neighborhoods zoned for single-family residential use rather than commercial or resort use.
Often, these are neighborhoods close to the beach that are not gated communities and do not have a Homeowner’s Association, such as Forest Beach and Folly Field.
That leaves few options for Hilton Head residents who want to live in a quiet, peaceful neighborhood that’s walking distance to the beach without having to deal with the headaches of living under an HOA.
Hilton Head first introduced new short-term rental regualtions in 2022, and they took effect Jan 1, 2023. That decision introduced the permitting system, and was a first step towards addressing parking, noise and trash issues.
“That was a beginning stage,” Becker said. “It has become apparent that there are additional rules and regulations that might be necessary.”
In February, the town council discussed new short-term rental regulations related to fire safety, occupancy and minimum parking requirements. However, the council did not come to a consensus.
Some realtors, short-term rental owners and town council members have pushed back against proposed regulations they see as too strict.
They fear prospective short-term rental owners will choose another resort community with fewer rules to conduct their business. Realtors worry too much regulation could have a domino effect of declining property values as investors pull out. This, they say, could lead to a declining tax base for the town, which could impact Hilton Head’s ability to fund public projects.
However, Becker continues to advocate for stronger regulations, with a focus on improving the quality of life of residents.
“If you look across the country, in fact, if you look across the world, you’ll note that almost every resort residential community has rules and regulations,” Becker said. “Hilton Head is one of the few, even with those that we currently have in place, that has a limited amount of rules and regulations.”
New rules on horizon
The committee discussed new proposed rules for short-term rentals at the Monday meetings.
After many public comments from residents and stakeholders in the short-term rental industry, the committed passed forward the amended ordinance.
The amendments will be reviewed by the town council at a special meeting on Oct 13.
The council could still further amend the rules, or bounce the ordinance back to committee.
If passed in its current form, here’s what the new rules would be:
Occupancy
New rules would place restrictions on the maximum number of people that can stay in a short-term rental.
The proposed occupancy limit would only apply between the hours of 10:00 p.m. and 7:00 a.m.
Here’s how the maximum occupancy for a short-term rental property would be calculated:
- For a studio, the maximum occupancy is always 2.
- For 1-plus bedrooms, the maximum occupancy is two times the number of bedrooms plus two. For a seven-bedroom property, that means the maximum occupancy is 16.
What it would mean: If you’re staying a short-term rental, you can host a large gathering during the daytime that exceeds the maximum occupancy of the property. But you’ll need to send your guests home after 10 p.m., which is when the town’s noise ordinance kicks into effect.
Why it’s a concern: Limiting occupancy, especially overnight, could reduce noise problems and improve fire safety.
Parking
Parking must be off-street and within a driveway. There must be enough space for all the cars to be able to park without blocking the sidewalk. A space of at least nine feet by 18 feet is required for each vehicle.
The new rules would limit the number of parking spaces per site plan to six.
What it means: If you’re staying in a short-term rental, you are not allowed to park on the street, on the grass or off-site. If you own a short-term rental, you’re responsible for proving there is adequate parking on-site, and you can face sanctions if your tenants violate parking rules.
Why it’s a concern: Residents have expressed concerns about short-term rental visitors taking up street parking in their neighborhoods, sometimes blocking driveways, sidewalks and mailboxes. When all the street parking is taken up, residents have seen contractors, delivery drivers and cleaners park in the right-of-way, blocking traffic.
Fire and life safety
“Fully operable” smoke and carbon monoxide detectors would be required in short-term rental properties, under proposed regulations. If propane is used inside the unit, like in a gas oven or gas stove, a combustible gas detector would be required. A working fire extinguisher must also be kept in the property.
A fire suppression system, such as a sprinkler system, would be required in properties larger than 3,600 square feet. If there is no fire suppression system in the property, working fire alarms must be installed in every bedroom, sleeping area, in every room on the path to exit from a bedroom and on every floor, including basements. The fire alarm system must be monitored remotely by a third party agency.
Exterior gas grills will need to be equipped with an automatic shut-off timer.
What didn’t make the cutting floor?
The committee also discussed a proposal that would require short-term rental property owners to insure their businesses against personal injury, including death. However, the committee chose not to move forward with that suggestion.
Another suggestion was that floor plans should be posted on each floor of the short-term rental property. Each floor plan would have needed to include the location of fire extinguishers and show a fire escape plan. The floor plan requirement was dropped from proposed amendments; town leaders cited concerns that the creation and review of floor plans could add too much of a burden to both town staff and short-term rental owners.
The council debated whether the fire suppression requirements would apply to all properties or just properties larger than 3,600 square feet. They opted to recommend that the rules only apply to the large properties.
What it means: If you operate a short-term rental on Hilton Head, you must take steps to reduce the risk of a fire in your property. However, you’re not required to hold liability insurance, although it still might be a good business practice in the event of injury or death.
Why it’s a concern: Fire and life safety is a huge concern in short-term rentals. A Palmetto Dunes short-term rental home burned down in 2022, killing one tourist and critically injuring another. The Hilton Head Fire Rescue responds to frequent fire calls to short-term rentals, and many fires stem from outdoor gas grills.
Inspections
Any short-term rental property would be subject to inspections, under the proposal. The town would need to give a 48-hour notice prior to entering the property.
Fees
Proposed permit fees are:
- 0-4 bedrooms: $500
- 5+ bedrooms: $1000
The change would mark an increase from the current short-term rental permit fee of $250 per property, regardless of size. The committee debated whether fees should be as much as $2,500 for large properties, but opted to suggest $1,000 to town council.
