Buying an AirBnB in Charleston

"I'd like to buy a second home to AirBnB when I'm not there."

We hear this all the time, and while it's a fantastic idea in theory, it doesn't really work in Charleston. Here's why...

Partly because the hotel & tourism industry is so powerful, and even more due to  preservation efforts, short term rentals (STR) are strongly opposed off the beaches. Charleston is beloved for its character, charm and authenticity. Our City officials are committed to maintaining that atmosphere, so they've adopted stringent eligibility criteria. Outside of one distinct area, you can't operate an STR without living on the property and being onsite/available during the rental period.

The best spots for AirBnB success are Isle of Palms, Folly Beach, and commercially zoned properties in the Short Term Rental overlay district (Cannonborough-Elliotborough above Calhoun St and below the Crosstown). But the best you could do is subsidize the cost of owning a second home. Any rental income would be offset by the acquisition costs, taxes, insurance, and maintenance expenses.

Downtown Charleston: outside of that commercial overlay district Calhoun to the Crosstown, it's near impossible to operate an STR. In addition to you living onsite, the property has to be at least 50 years old and/or listed on the National Register of Historic Places.

Other parts of the city like West Ashley, James Island, Johns Island, Daniel Island are only eligible for AirBnB if you live on the property and you have a dedicated parking spot just for the rental.

Mt Pleasant is a suburban community full of HOA-governed neighborhoods that don't allow rentals less than 6+ months. For properties outside of HOA control, the Town has limited STR permits to 400 total, and you have to reapply every year. There’s a long wait list that hasn't gotten any shorter since it was started. 

However, there is a strong market for "executive rentals", which are furnished and leased by the month with utilities included. Aside from any superseding HOA rules, monthly rentals are allowed in all towns and can most certainly be profitable.

There's an even stronger market for unfurnished long term rentals. Although it won't allow you seasonal use of the property as a second home, this is a lucrative way to invest in Charleston without the carrying costs.

Here is a complete breakdown of short-term rental (STR) rules across Charleston County.

Key Takeaways for Investor Clients

1. Turnkey Non-Owner Occupied Opportunities

• Isle of Palms (Commercial/Resort Zones): The cleanest play for traditional non-owner investor short-term rentals, particularly inside resort boundaries like Wild Dunes or commercially zoned island districts.

• Downtown Commercial STR Overlay: High-revenue potential, but inventory is extremely limited, priced at a premium, and strictly bounded to specific commercial/mixed-use corridors.

2. The "Unincorporated County" Strategy

• In areas like West Ashley, James Island, and Johns Island, properties that sit outside municipal boundaries fall under Charleston County Zoning (ZLDR Chapter 6).

• Charleston County allows non-owner STRs under their Commercial Guest House (CGH) classification or Extended Home Rental (EHR). Verification of municipal tax maps is essential to ensure the parcel is truly unincorporated.

3. Permit Transfer Restrictions

• Licenses do not automatically transfer upon sale. A buyer cannot simply assume a seller’s existing STR permit.