Richland County, South Carolina Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Richland County, South Carolina?

Richland County, South Carolina recently passed new regulations for short-term rentals like Airbnb and VRBO. The county aims to monitor these rentals, ensure taxes are being paid, and address any public safety or nuisance complaints.

Starting a Short-Term Rental Business in Richland County

As of April 2024, short-term rentals in unincorporated Richland County are required to:

• Obtain a business license from the Richland County Business Service Center
• Register the rental property through the county's Etrakit Web Portal, providing owner contact info and property details
• Remit a monthly 3% accommodations tax on rental revenue

Property owners renting out more than one residential unit must also complete a Residential Rental Property Registration form in addition to the business license application.

Short-term rentals are only allowed in certain zoning designations under the county's new land development code that took effect in March 2024. Some rental operators are urging the county to revisit the code to allow more short-term rentals, citing high demand from visitors coming for sporting events, Congaree National Park, Fort Jackson graduations, and more.

Richland County expects the new rules to generate over $70,000 annually in business license taxes and $1.5 million in accommodation taxes if 500 short-term rentals become licensed. The regulations are similar to those passed by the City of Columbia in 2023.

Free business planning assistance and other resources are available from the Richland County Library and local organizations like Destination Mansfield-Richland County. With some planning and following the new county rules, entrepreneurs can successfully launch a short-term rental business in Richland County.

Short-Term Rental Licensing Requirement in Richland County

As of April 2024, short-term rental operators in unincorporated Richland County are required to obtain a business license and register their property. Here are the detailed steps:

1. Register the short-term rental property through the county's Etrakit Web Portal, providing:

1. Owner's mailing address, phone number, and email
2. Rental property address
3. Authorized agent information if the owner lives more than 50 miles from the rental property

2. Obtain a business license from the Richland County Business Service Center. Submit a New Business License Application along with the Residential Rental Property Registration form.

3. Remit a monthly 3% accommodations tax on short-term rental revenue to the county.

Business license applications can be submitted online through the Business Service Center website or in-person at their office located on the 1st floor of the County Administration Building at 2020 Hampton Street, Columbia SC.

Business license fees are based on business activity and gross receipts. Failure to obtain the required business license can result in penalties.

The typical processing time for a new business license application is approximately 2-4 weeks. For the short-term rental property registration, allow up to 10 business days for the county to process the registration.

Short-term rental operators who fail to obtain the required business license or register their property may face fines and penalties. The county has the authority to issue citations and pursue legal action against non-compliant short-term rentals.

By implementing this new licensing and registration process, Richland County aims to monitor the growing short-term rental market, ensure proper tax collection, and quickly address any public safety or nuisance complaints at these properties. The county expects the regulations to generate significant new tax revenue to benefit the community if widely adopted by short-term rental owners.

Required Documents for Richland County Short-Term Rentals

According to the new Richland County short-term rental ordinance, the following documents and information are required to register a short-term rental property and obtain a business license:

1. Completed Residential Rental Property Registration through the county's Etrakit Web Portal, providing:

1. Owner's mailing address, phone number, and email
2. Rental property address
3. Authorized agent information if the owner lives more than 50 miles from the rental property
4. This registration is required for all short-term rentals and helps the county maintain a database of these properties for monitoring and addressing any issues.

2. New Business License Application submitted to the Richland County Business Service Center, including:

1. Business name and rental property address
2. Owner contact information
3. NAICS business activity code
4. Estimated gross receipts
5. This business license is required to legally operate a short-term rental in unincorporated Richland County. The license fees are based on estimated revenue.

3. Residential Rental Property Registration form submitted along with the business license application for owners renting out more than one unit.

This form provides additional details on owners with multiple rental properties in the county.

4. Proof of accommodation tax registration and remittance

Short-term rental operators must collect a 3% accommodations tax from guests and remit it to the county monthly. Proof of registration and payment is required to maintain a valid business license.

These documents help Richland County monitor the growing short-term rental market, ensure proper tax collection, and quickly address any safety or nuisance complaints. Failure to provide this information and obtain the required business license can result in fines and penalties for short-term rental owners. Applications and forms can be submitted online through the county's Business Service Center website or in-person at their office in Columbia, SC.

Richland County Short-Term Rental Taxes

Short-term rental operators in Richland County are subject to several state and local taxes. Here's a breakdown of each tax that applies:

State Sales Tax on Accommodations (7%)

1. The South Carolina Department of Revenue requires short-term rental operators to collect a 7% state sales tax on the gross proceeds from rentals of less than 90 continuous days.
2. This tax is remitted to the state along with the required state sales tax return.

State-Administered Local Sales Tax (1-3%)

1. Depending on the rental property's location, a local sales tax of 1-3% may also apply in addition to the state sales tax.
2. This local tax is administered and collected by the state, so it is remitted to the Department of Revenue along with the state sales tax.

Local Accommodations Tax (3%)

1. Richland County levies a 3% local accommodations tax on the gross proceeds from short-term rentals.
2. This tax is collected by the short-term rental operator and remitted directly to Richland County on a monthly basis.

Local Hospitality Tax (2%)

1. A 2% local hospitality tax applies to prepared meals and beverages in Richland County, which can impact short-term rentals that offer these amenities.
2. If a short-term rental provides meals or beverages to guests, the 2% hospitality tax must be collected and remitted to the county.

In total, short-term rental operators in Richland County can expect to collect and remit 11-13% in combined state and local taxes on their rental revenue. It's crucial to keep accurate records and file the required tax returns on time to avoid penalties and interest.

Some possible tax deductions for short-term rental businesses in Richland County may include:

1. Mortgage interest
2. Property taxes
3. Rental insurance premiums
4. Cleaning and maintenance costs
5. Utility expenses
6. Depreciation on furniture and equipment
7. Advertising and platform fees (like Airbnb or VRBO)
8. Accounting and legal fees

Short-term rental operators should consult with a tax professional to determine which deductions apply to their specific business and to ensure proper tax compliance at the federal, state, and local levels. By understanding the applicable taxes and taking advantage of available deductions, short-term rental entrepreneurs can optimize their business operations in Richland County.

South Carolina Wide Short-Term Rental Rules

In South Carolina, short-term vacation rentals are subject to state-level taxation, which consists of state sales and accommodations taxes. Here are the key statewide regulations that impact Richland County short-term rental hosts:

State Sales Tax (7%)

Short-term rental operators must collect a 7% state sales tax on the gross proceeds from rentals of less than 90 continuous days.

State Accommodations Tax (2%)

• A 2% state accommodations tax also applies to short-term rentals in South Carolina.
• Hosts are exempt from collecting this tax if they rent out their property for less than 15 days during the taxable year or if they rent out six bedrooms or less in their primary residence.

Tax Registration and Filing

• Before collecting state taxes, short-term rental operators are required to register with the South Carolina Department of Revenue for a retail license.
• If a host provides accommodations for less than one week in any calendar quarter, they don't need to register for a retail license but must still collect and remit lodging taxes.

Tax Collection by Rental Platforms

• If a host rents exclusively through a booking platform like Airbnb or Vrbo, they are not required to register with the state or collect state short-term rental taxes, as the platform collects these on their behalf.
• However, hosts are still responsible for collecting and remitting any local taxes not administered by the state.

Proposed Statewide Legislation (H. 3253)

• In January 2023, South Carolina lawmakers introduced a bill that would prohibit local governments from banning short-term rentals.
• If passed, this law would preempt any local ordinances prohibiting short-term rentals, although reasonable regulations would still be allowed.

While these statewide rules provide a framework for short-term rentals in South Carolina, it's important for Richland County hosts to also understand the county-specific regulations covered in the previous sections. By complying with both state and local requirements, hosts can legally operate their rentals and avoid potential fines or penalties.

As short-term rentals continue to grow in popularity across South Carolina, state and local laws may evolve to address new concerns and considerations. Richland County hosts should stay informed about any updates to statewide vacation rental regulations that could impact their businesses.

Does Richland County Strictly Enforce STR Rules?

Based on discussions in real estate investing forums like Bigger Pockets and Reddit, it appears that Richland County is taking a measured approach to enforcing its new short-term rental regulations. The county seems to be focusing more on registering STRs and collecting taxes rather than aggressively cracking down on rule-breakers.

Compared to some other cities and counties with very restrictive STR policies, Richland County is relatively Airbnb-friendly. The regulations allow short-term rentals in most commercial and mixed-use zones, although they are prohibited in single-family residential areas. This provides opportunities for investors and hosts while aiming to preserve neighborhood character.

Despite the new rules, many hosts continue to operate STRs in Richland County, even in areas where they may not be explicitly allowed. Several Reddit users reported successfully running Airbnbs in Columbia and other parts of the county without major issues. They noted the importance of being a responsible host, maintaining positive relationships with neighbors, and promptly addressing any complaints.

However, hosts should be aware that operating an STR without the proper permits and tax registrations carries risks. The county has the authority to issue citations and fines for non-compliance. Some Bigger Pockets members cautioned that the enforcement of STR rules could increase over time as the county adapts to the new regulations.

Overall, while Richland County may not be the most lax location for STRs, it appears to strike a balance between allowing short-term rentals and maintaining oversight. Hosts who follow the registration process, obtain the required permits, and operate responsibly can likely run successful STRs in the county. However, those considering investing in STR properties should carefully review the zoning restrictions and be prepared to navigate the evolving regulatory landscape.

How to Start a Short-Term Rental Business in Richland County

Starting a short-term rental business in Richland County requires careful planning and compliance with local regulations. Here's a step-by-step guide to help you get started:

Research zoning and regulations

• Review Richland County's zoning map and land development code to ensure your property is in an area that allows STRs.
• Familiarize yourself with the county's STR ordinance and licensing requirements.
• Consider consulting with a local real estate attorney or land use expert to navigate the regulatory landscape.

Develop a business plan

• Define your target market, pricing strategy, and marketing approach.
• Estimate your startup costs, operating expenses, and revenue potential.
• Determine your legal business structure (sole proprietorship, LLC, etc.) and register your business with the state.

Prepare your property

• Ensure your rental property meets all safety and building code requirements.
• Furnish and equip the property to provide a comfortable and inviting experience for guests.
• Consider hiring a professional photographer to showcase your property's best features in your listing.

Register your STR with Richland County

• Submit a Residential Rental Property Registration through the county's Etrakit Web Portal.
• Provide all required information, including owner contact details, property address, and authorized agent information if applicable.

Obtain a business license

• Apply for a business license from the Richland County Business Service Center.
• Submit a New Business License Application along with the Residential Rental Property Registration form.
• Pay the applicable business license fees based on your estimated gross receipts.

Set up tax collection and remittance

• Register with the South Carolina Department of Revenue for a retail license to collect state sales and accommodations taxes.
• Set up processes to collect the 3% Richland County accommodations tax from guests and remit it to the county monthly.
• Consider using a tax management software or service to streamline tax compliance.

Create your listing and start marketing

1. Choose a platform like Airbnb, Vrbo, or Booking.com to list your property.
2. Craft a compelling listing description and title that highlights your property's unique features and location.
3. Set competitive rates based on your market research and revenue goals.
4. Develop a marketing plan to attract guests, such as promoting your listing on social media or offering special deals.

Manage your STR business

1. Establish clear check-in and check-out procedures for guests.
2. Develop a system for cleaning and maintaining the property between stays.
3. Respond promptly to guest inquiries and feedback to maintain a positive reputation.
4. Monitor your financial performance and adjust your strategies as needed.

By following these steps and staying informed about local regulations, you can launch a successful short-term rental business in Richland County. Remember to prioritize guest experience, maintain open communication with the county and your neighbors, and continuously adapt to changes in the market and regulatory environment.

Who to Contact in Richland County about Short-Term Rental Regulations and Zoning?

For questions about Richland County's short-term rental regulations and zoning, here are the key contacts and resources:

Richland County Planning Department

1. Phone: (803) 576-2190
2. Email: landdevelopmentcode@richlandcountysc.gov
3. Address: 2020 Hampton St., First Floor, Columbia, SC 29204

The Planning Department can assist with questions about the county's Land Development Code, zoning districts that allow short-term rentals, and the permitting process.

Richland County Business Service Center

1. Phone: (803) 576-2287
2. Email: bsc@richlandcountysc.gov
3. Address: 2020 Hampton Street, First Floor, Columbia, SC 29204

Contact the Business Service Center for questions about business licenses, the Residential Rental Property Registration, and local accommodations taxes for short-term rentals.

In addition to these official resources, short-term rental hosts in Richland County may find support and advice from local real estate investing groups and online communities:

1. Midlands Real Estate Investors Association (REIA): A local group that holds monthly meetings and provides networking opportunities for real estate investors, including short-term rental operators.
2. Richland County Real Estate Investing Forum on BiggerPockets: An online community where local investors discuss the Richland County market, regulations, and strategies for short-term rentals.
3. Columbia, SC Airbnb Hosts Facebook Group: A private group for Airbnb hosts in the Columbia area to share experiences, ask questions, and stay updated on local regulations.

By engaging with these local government resources and connecting with the Richland County short-term rental community, hosts can stay informed about the evolving regulatory landscape and get support to run successful and compliant vacation rental businesses.

What Do Airbnb Hosts in Richland County on Reddit and Bigger Pockets Think about Local Regulations?

Based on discussions in local real estate investing forums and social media, here are some insights into what Richland County short-term rental hosts think about the local regulations:

Bigger Pockets Forum - "Taxes for investment properties in Columbia SC" thread

One investor noted that under South Carolina law, counties reassess property values every 5 years, which can significantly impact property taxes. They cautioned that this reassessment could negatively affect cash flow, especially for non-owner occupied investment properties taxed at the higher 6% rate compared to 4% for owner-occupied homes.

Reddit r/columbiasc - "Moving to Irmo/Richland County" thread

In a discussion about moving to the Richland County suburbs, one commenter mentioned that Columbia charges extra property taxes on rental properties, resulting in high rents and low supply of desirable units. This suggests the tax treatment of rentals, including short-term rentals, is a concern for both tenants and landlords.

Bigger Pockets Forum - "Non-Owner Occupied Property Taxes" thread

An investor looking to purchase a property in Columbia to live in initially and then rent out expressed confusion about how the 6% tax rate on non-owner occupied properties would be assessed compared to the 4% rate for owner-occupied. The 2% difference and its impact on effective property tax liability was a point of concern and uncertainty for this prospective host.

Reddit r/ColumbiYEAH - "What is up with renting in Columbia?" thread

Commenters discussing the high cost of renting in Columbia pointed to the extra property taxes levied on rental properties as a key factor. One noted that houses on their street that are the same size as their own rent for $500 more per month than their total mortgage, taxes and insurance. Another mentioned landlords are able to charge high rents to make money. This conversation, while focused on long-term rentals, underscores how Columbia's tax policies affect the rental market.

While these forum discussions don't provide a comprehensive view, they suggest that Richland County's short-term rental hosts are likely concerned about the county's property tax treatment of non-owner occupied properties and its impact on their ability to operate profitably. The 6% tax assessment on investment properties appears to be a point of confusion and concern. As the county implements new short-term rental regulations, hosts will need to factor in these tax implications as they make decisions about their rental businesses.

Disclaimer: While we here at BNBCalc strive to keep all of our regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.