So, if you know us you know we are all about honing in on the real estate market in ways that can maximize our clients’ return. For some, that involves a focus on earning passive income through a short term rental portfolio, and we agree that there are some great opportunities in our local market. In fact, a quick google of the good ole’ holy city will reveal that Charleston is routinely ranked among the top ten places for short term rental investment.
This all being said, one thing any savvy investor must know is there are some real obstacles to owning a short term rental in Charleston County and aligning with a local expert will keep you abreast of the ever-changing landscape. (We’re looking at you Folly Beach!)
So, here’s our top picks and the skinny on what you need to know.
1. Downtown: If you are lucky enough to get your hands on a coveted downtown, you’ll be ahead of the game, as they are not a dime a dozen. In fact, there are really just a couple of main areas including Canonborough & Elliotborough that lie in the Overlay Zone. The other 3 Categories have very specific and restrictive terms which leave very little room for opportunity. Also, please note that even though a property might be located in the Overlay Zone, it is not a guarantee to a property’s ability to gain an STR Permit. We like to be extra careful here and would advise reaching out to the City of Charleston at: [email protected] for specific information.
2. Park Circle: Out of all of our top picks, this vibrant downtown area of North Charleston is a winner due to it’s affordability, convenience to both downtown and the suburbs, and favorable STR laws. Though there are requirements such as no more than 8 guests per dwelling, and a 24 hour emergency contact within 30 minutes of the property, the process if fairly straightforward and can be highly lucrative.
3. Isle of Palms: Dear ole IOP, you still have us at beachfront and occupancy rate. And while we don’t forsee anything changing that would be unfavorable to this vibrant STR area, we also didn’t think that would happen out on Folly Beach either, so again you must stay up to date on the local laws and do your due diligence on each specific property.
4. Seabrook Island: This barrier island has always been home to a successful rental community, and though we’ve seem some recent developments that are making it more difficult to short term rent, as of this writing Seabrook remains a good option, especially for those out of towners who want to double up on a beach getaway and rental. Keep in mind all areas have their drawbacks, and the extra costs associated with the club fees and hoas do eat into profit margins here.
So there you have it, now take our advice, always reach out to a local real estate expert who can help you navigate the market, and always ensure you know all the ins and outs of each municipality’s ordinances and HOAs covenants. Happy renting!
Source: Kelly Stradling, Realtor ©
