Preparing for the Fight Ahead: What South Carolina’s Short Term Rental Industry Must Demand in the First 2026 Legislative Session

As South Carolina lawmakers revisit short term rental policy, it is critical that legislation addresses the full scope of regulatory imbalance facing professional property managers, homeowners, and consumers.

Recent media coverage has focused narrowly on preventing local bans on short term rentals. While that discussion matters, it is incomplete. Any serious legislative solution must also confront the systemic advantages granted to large technology platforms operating outside the same licensing, tax, and consumer protection rules required of South Carolina based businesses.

This session will not be easy. It will be a David versus Goliath fight. That is precisely why preparation, clarity, and unified action are essential.

Eliminating Bans Is Not Enough

Proposals that limit local governments from banning short term rentals address only one symptom of a much larger problem. Without parallel reforms focused on revenue, licensing, and compliance, South Carolina risks reinforcing a system that favors large platforms at the expense of local professionals, homeowners, and taxpayers.

Any legislation addressing short term rentals must include additional guardrails to ensure fairness, accountability, and consumer protection.

The Core Issues Lawmakers Must Address

1. Licensing and Regulatory Parity

Professional vacation rental managers in South Carolina operate under state licensing laws. They handle consumer funds, charge commissions, maintain trust accounts, and are subject to audits and enforcement.

Large technology platforms perform similar functions but are not held to the same standards.

No regulatory framework should allow one segment of the industry to operate under strict licensing rules while another handles consumer money without equivalent oversight.

2. Tax Collection and Remittance Must Be Universal

South Carolina based vacation rental managers are required to collect and remit all applicable taxes. Many large platforms continue to resist consistent, enforceable obligations across jurisdictions.

This creates:

• • An uneven competitive landscape

• • Confusion for local governments

• • Lost revenue for the state

• • Increased enforcement costs

All entities facilitating short term rental transactions must be required to collect and remit taxes just like any other business operating in South Carolina.

3. Preventing Unauthorized and Duplicate Listings

One of the most serious and under discussed issues is the ability of platforms to list properties without the consent of professional managers who hold exclusive rental and marketing agreements.

This practice creates multiple risks:

• • Double listing the same property for both owner and agent

• • Sending guest funds to the wrong party

• • Violating trust account requirements

• • Exposing consumers to booking confusion and disputes

This is not just a business issue. It is a consumer affairs issue that undermines trust, transparency, and fair dealing.

Legislation must prohibit platforms from listing properties under exclusive management agreements without written authorization from the licensed manager.

4. Centralized Registration for All Short Term Rentals

South Carolina currently lacks a comprehensive, statewide registration system for short term rentals.

As a result:

• • Anyone can operate without registering

• • Underground rental activity continues unchecked

• • Tax revenue is lost

• • Enforcement becomes reactive and fragmented

SCVRA supports a simple, online registration portal for all short term rentals, similar to how hunting or fishing licenses are issued. This would improve compliance without burdening responsible operators.

Why This Matters to Communities and Consumers

Unregulated, anonymous operations fuel the very complaints that lead to local bans and extreme regulatory proposals. When no one is accountable, neighbors suffer, cities react, and responsible professionals are caught in the middle.

Fair regulation that emphasizes licensing, registration, tax compliance, and local accountability protects:

• • Homeowners and their investments

• • Guests and consumer trust

• • Neighborhood stability

• • The long term viability of tourism

The SCVRA Position

South Carolina can support tourism, protect property rights, and strengthen communities at the same time. But that requires lawmakers to look beyond headlines and address the real structural issues in today’s short term rental marketplace.

SCVRA will continue to provide factual analysis, policy recommendations, and advocacy resources as this legislative battle unfolds.