Short-term rental regulations on Hilton Head a step closer to reality. What’s next?
New regulations for short-term rentals like Airbnbs and Vrbos on Hilton Head Island seem poised to go into effect in the coming months.
The island’s Town Council in a 7-0 vote Tuesday approved the new rules on first reading, which means the council still needs to pass the proposed regulations once more before they become local law.
The council’s second reading of the rules will be held at 3 p.m. May 17 in Town Hall.
The effort to regulate the rentals has sparked debate, but short-term rental operators seemed to acknowledge Tuesday that council members show no signs of rejecting the regulations.
Instead, both members of the vacation rental community and the Town Council appeared to be looking ahead to future discussions about how to potentially regulate short-term rentals in other ways beyond the draft rules that the council is currently reviewing.
Anne Cyran, the town’s interim community planning manager, said for example, “We want to consider occupancy limits based on the number of bedrooms.”
Details about those expected conversations will likely be fleshed out later this year.
“Bringing ‘phase two’ forward quickly,” said Ward 4 representative Tamara Becker, “is really, incredibly important. ... It’s long overdue.”
Dru Brown, a founder of the vacation rental company Island Time Hilton Head, meanwhile, said he knows the currently proposed regulations will pass through the Town Council, and he believes they are “acceptable,” but he also asked the elected officials, “Where do we go next? Where do we push our community?”
There are 7,000 to 10,000 short-term rentals on the island, the town has estimated. The U.S. Census Bureau reported last year that Hilton Head’s 2020 population was 37,661 people.
Several Hilton Head gated communities already restrict or ban short-term rentals, including Hilton Head Plantation, Indigo Run, Port Royal and Wexford, among others, according to the town.
What are the proposed rules?
The rules that the Town Council passed on first reading Tuesday do not block short-term rentals from operating in certain zoning districts or set occupancy limits.
Here’s what the town plan would do:
▪ All short-term rentals would need to apply for and receive a special type of permit. Town staff members have recommended that the annual permits cost $250 each — for now — and that the Town Council reevaluate and set the cost of the permits every year during its budget adoption process. The permits would be non-transferable.
▪ The new rules would go into effect after being approved on second reading, but the town would not enforce them until Jan. 1, 2023. The town would open up a new online portal for applicants to request short-term rental permits this fall.
▪ The regulations would not cover hotels, motels, hospitals or timeshares, according to town records.
▪ The town would mandate that: short-term rental owners or agents be capable of being physically present at their rental to respond to a complaint about guests, or be capable of taking some other “responsive action,” within one hour of being notified of a complaint; maintain smoke and carbon monoxide detectors, as required by law; maintain fire escape routes and at least one fire extinguisher; display information about Hilton Head’s 10 p.m. to 7 a.m. quiet hours and other town noise rules; have a designated trash storage area with a fence or screen so garbage cans are not visible from public streets and neighboring property except during pick-up times; and designate the number of parking spaces that are available for guests, among other things.
▪ A violation of the new rules could result in a fine of up to $500 or up to 30 days in jail, or both, under an existing section of town code.
▪ Hilton Head would be allowed to suspend and potentially revoke a short-term rental permit if a property was declared a nuisance; an owner failed to pay taxes or fees; or more than two convictions for town code violations “arising from activities at, or connected with,” a short-term rental occurred during a 12-month period, among other things.
▪ The Town Council would hold a hearing on whether a permit suspension should be upheld and whether that permit should be revoked, during which a short-term rental owner could have an attorney and provide testimony or evidence. The owner also could appeal the council’s decision in the matter.
Cyran, the town’s interim community planning manager, has said that Hilton Head plans to contract with a third-party company to man a hotline or offer a web form where residents can submit complaints against short-term rentals.
The company, Cyran has said, will call the short-term rental owners or agents about the alleged problem, and the town will obtain data on each complaint so staff members can track the outcomes.
If a complaint is not resolved, the town’s code enforcement team can follow up on the matter. If a code enforcement officer issues a citation for an alleged violation, the defendant will head to magistrate court.
Millions of dollars in fees and expenses
The town estimates that with a $250 permit fee, it will collect between $1.7 million and $2.5 million in fees each year.
To support its regulation of short-term rentals, the town expects annual expenses of $1.5 million to $2.1 million.
The town wants to hire a public safety director, four code enforcement staff members, a contract manager and an inspector to help manage the new program, among other things.
Town staff members have recommended that short-term rental owners inspect and verify that their properties meet the regulations’ various safety requirements, with Fire Rescue and town inspectors investigating any fire or building complaints.
The new inspector also could conduct “spot inspections” on safety compliance, the town has suggested.
