What the Folly Beach Short-Term Rental Ruling Means for You

By Mikki Ramey

Mikki Ramey, a trailblazer in the world of real estate, has carved an inspiring path marked by dedication, expertise, and a profound commitment to her clients’ well-being.

If you’ve been following Folly Beach over the last couple of years, you know there’s been a lot of fiery debate over short-term rental restrictions, and it just took another turn. Let me break down what’s actually going on behind the scenes, and, more importantly, what it means if you’re thinking about buying here.

First, a quick definition. A short-term rental is simply a vacation rental, a property rented out for 30 days or less. Because Folly Beach is a beautiful beach and tourism area, a lot of owners have wanted to buy property here and rent it to vacationers. Back in 2023, voters approved an ordinance that created a registration fee and a cap on investor short-term rentals, capping them at 800. If you owned a property and wanted to run it as an investor short-term rental once that cap was hit, you’d go on a waitlist, and you could only get a license once one of the 800 fell out of eligibility.

Then in mid-August, a judge voided the ordinance. The ruling struck down both the cap and the registration fee, and it’s worth being precise about why, because it matters: the judge’s ruling was about how the ordinance was adopted, not about whether a cap is allowed. The court found the fee was essentially an improper tax and that the power to tax and regulate rests with city council rather than a voter referendum. In other words, the ruling didn’t say a cap can never exist; it said this particular one wasn’t put in place correctly.

Reactions split right down the middle. On one side, many homeowners were thrilled, they feel they own their property and should have the right to do what they want with it, including renting it short-term. On the other side, plenty of Folly Beach homeowners love that it’s a small beach town with more full-time residents than vacationers, and they want to protect that character. That tension, property rights versus community feel, has driven this fight since 2023, and there are strong, sincere feelings on both sides.

Here’s where things stand right now. In late August, town council voted to appeal the ruling, and they also put a temporary moratorium in place that pauses new short-term rental license applications while a third-party study of the cap plays out. Because of the appeal, the cap is staying in effect for now. This is a fast-moving situation with more chapters to come, so it’s genuinely one to keep watching.

My honest take as an agent. I do love that you can generally do what you want with property you own, so I understand why a cap feels frustrating to some owners. That said, restrictions like this are common, anyone in a homeowners association is subject to that HOA’s rules, and many cities around Charleston have their own short-term rental ordinances, just like Folly Beach. Isle of Palms, for instance, considered a cap a few years ago that ultimately didn’t pass, so it isn’t capped there. The point is, “can I short-term rental this property?” is a real question across a lot of areas, not just Folly Beach.

What this means if you’re buying on Folly Beach. This is the part I really want you to hear. Right now, I’d strongly encourage you to purchase a property without depending on being able to short-term rental it, because there’s no guarantee you’ll be able to. With the cap in place and a moratorium on new applications, buying as your primary residence, as a second home, or as something you’d rent long-term (over 30 days) are all solid, fully allowed options today. If short-term rental is your goal, you can still apply to get on the waitlist, but you shouldn’t count on it as a sure thing when you buy.

This is going to be a fascinating story to watch unfold over the coming months. If you’d like to look at properties, or you have questions about what would make sense for you, whether as a long-term rental, a second home, or simply a place to enjoy, reach out and I’d love to help. Call or text me at 843-701-9186, email me at mikramey@gmail.com, or visit healthy-realty.com. Have a great day.