Guidelines for vacation rental success
As your vacation rental manager, Oaks & Palm will help you navigate the challenging world of regulation compliance.
Short-Term Rental Requirements for Owners
As your vacation rental property manager, Oaks & Palm requires that you abide by local Hilton Head regulations as well as certain insurance requirements.
The Town of Hilton Head Island has put into effect a short-term rental ordinance that applies to any privately owned properties used as vacation homes and short-term rentals (rentals less than 30 days). If you own a short-term rental property, the following regulations and requirements will apply:
Short-Term Rental Permit
Owners are required to obtain a short-term rental permit for each property they offer as a short-term rental.
- Short-term rentals include all residential properties rented for less than 30 days at a time.
- Owners can apply online using Hilton Head’s short-term rental portal.
- The permit application process includes compliance in the areas of noise, trash, parking, safety, and response time to issues.
- The fee is currently $250 per property and must be renewed every year.
- Property owners are required to obtain their rental permit prior to being listed for rent.
Learn more about short-term rental permit requirements for owners
Hilton Head Business License
Short-term rental property owners are required to obtain a business license issued by the town of Hilton Head Island.
- You must have a short-term rental permit before you can register for a business license.
- The business license application fee is $10.
- Each year, a Business License Tax must be paid by April 30th. The business license tax is calculated on gross revenue from the previous calendar year.
- Property owners are required to obtain their business license prior to being listed for rent.
Learn more about a business license for short-term property rentals
Accommodations Tax
Short-term rental property owners are required to collect 10% state and local accommodations tax.
- This tax must be paid when any party rents your short-term rental property for less than 90 days.
- State and local accommodations taxes are collected on gross rental income, which includes the rental rate and all applicable fees such as cleaning, insurance, etc.
- Oaks & Palm will collect and remit all accommodations taxes on behalf of the property owner for all short-term rental properties we manage.
Sea Pines Registration
Sea Pines property owners must register with the Sea Pines CSA Annual Rental Registration Program
- This applies to residential property owners in Sea Pines that rent their homes at any time during the calendar year.
- The Sea Pines rental registration fee is non-transferrable, non-refundable and not able to be prorated in the event of a property changing ownership.
- It is the owners’ responsibility to register rental property with Sea Pines and pay the annual fee, based on the number of bedrooms in the property, prior to being listed for rent.
Sea Pines Rental Registration Fee for 2024
One to Two Bedrooms……………$300
Three to Four Bedrooms…….….. $700
Five or More Bedrooms…………. $1,000
Learn more about the Sea Pines CSA Annual Rental Registration Program
Palmetto Dunes Registration
Palmetto Dunes property owners must complete the Palmetto Dunes Short Term Rental Registration
- This annual registration applies to residential property owners who rent their homes in the short-term rental market for any period of less than 90 continuous days for monetary consideration within Palmetto Dunes.
- Registration provides the necessary owner and property management information allowing the POA to quickly contact the appropriate individuals about property situations and guest needs.
- This annual registration is mandatory and remains valid from January 1st through December 31st. Registering your short-term rental property with the POA is both free and a separate requirement from the permit and business license required by the Town of Hilton Head.
- It is the owners’ responsibility to register rental property with Palmetto Dunes prior to being listed for rent.
Learn more about Palmetto Dunes Short-Term Rental Registration
Shipyard Registration
Shipyard property owners must complete the Shipyard Short Term Rental Registration
- The Short-Term Rental Registration is a free confidential registry for owners who rent their property within the short-term rental market in Shipyard. All owners who rent their property on a short-term basis must register two weeks prior to the first rental booking guest.
- All property owners are required to meet with the Membership Specialist at the Shipyard Welcome Center prior to receiving owner, guest/visitor, or rental passes.
- It is the owners’ responsibility to register rental property with Shipyard prior to being listed for rent.
Learn more about Shipyard Short-Term Rental Registration
Insurance Requirements
Any rental property managed by Oaks & Palm is required to maintain property and liability insurance.
The liability insurance coverage must be Commercial General Liability coverage with a limit of not less than $1,000,000 per occurrence and not less than $2,000,000 in the annual aggregate.
Oaks & Palm LLC must be added to your insurance policy as an “additional insured” and a “certificate holder”
- Adding Oaks & Palm as an “additional insured” ensures comprehensive coverage for all parties involved. This additional layer of protection is a common practice in rental management agreements and provides proper protection in the event liabilities arise directly related to your rental property.
- A Certificate of Insurance is proof of insurance coverage. As a certificate holder, Oaks & Palm will be notified of any lapses in coverage.
Preferred Vendor - Proper Insurance®
Oaks & Palm recommends Proper Insurance® for short-term rental property
Short-term vacation rentals don’t fit into one insurance category. Proper Insurance® has developed a specialty short-term rental insurance policy that covers both commercial and personal use of your vacation rental.
- Commercial Business Liability – Your most considerable exposure as a vacation rental owner is liability. What if a guest were injured while staying at your property? Or injured off-premise? What if you were found liable? The Proper short-term rental insurance policy provides $1,000,000 & $2,000,000 coverage options for commercial business liability so you can rest easy.
- Building and Contents Coverage – Proper provides unmatched property insurance coverage. Your building(s) and contents are upgraded to an ‘all-risk’ or exclusions-based coverage form. In addition, we reimburse with replacement cost valuation, meaning you get new for old at the time of a covered loss. Finally, we carry no occupancy restrictions, so complete coverage is always in place.
- Business Revenue Protection – You worked extremely hard to turn your short-term rental property into an income-generating short-term rental business. What if water, wind, or hail damage prevented you from renting your property? Our short-term rental insurance policy protects your income or revenue with “actual loss sustained” valuation and carries no time limit.
