Questions about Investing in STR - Charleston, SC

[Meghan McGill]

Has anyone invested in STRs in the Charleston, SC market? That is my local market and I started doing some research on it yesterday. It seems that in both the town I live in (outside of Charleston County) and in most parts of the City of Charleston, you can only have a STR IF you also live in it. Am I misinterpreting the regulations? Does anyone have any first hand experience with this? Are their loopholes? It said that the way they regulate this is by; the address on your driver's license, where you are registered to vote, and if you are getting the primary residence discount on your property taxes. I can't STR any of the rooms in my current house due to the HOA rules and I don't really have any space to rent out. Moving isn't completely out of the question, but would not likely be my best option. I could look in other markets, but hoped to start in my local market. I'd love to hear your experience in this market in particular or suggestions for next steps.

I've also considered doing a STR on a lake or river near me instead, which would probably put me outside of these heavily regulated municipalities, but I only found a couple of Airbnb's on the river I was considering. So, it is hard to determine the per night pricing and such when I am analyzing a deal. Do you think that a river would be less popular if there is a beach within 45 minutes of it? I'd prefer a river over the beach, but I may be in the minority. Have you invested in an area that didn't have a lot of comps? How did you overcome that hurdle? TIA!

[Sarah Young]

Hi Meghan! I live on James Island and have a STR in my home. You are right that in order to be legal in most jurisdictions, you must live on the property. If you are in the City of Charleston, there area a few other items you must check off on (age of home in relation to vicinity to downtown, etc.). Many places do not enforce their ordinances unless a neighbor complains (As in the case of James Island). The City of Charleston is another issue....they are pretty strict.