Final measure sets caps, enforcement rules and neighborhood-based limits
By Delayna Earley
The Island News
After months of debate, revisions and public input, Beaufort City Council gave final approval April 28 to a new ordinance regulating short-term rentals, establishing caps, enforcement rules and operating standards across the city.
The vote came during a special called meeting and worksession, marking the second and final reading after council advanced a revised version on first reading April 21.
That earlier vote reset the process and incorporated amendments that shaped the final version approved this week.
What the ordinance does
The ordinance creates a new chapter in the city’s code governing short-term rentals and treats them as a regulated business requiring a license and ongoing compliance.
Short-term rentals are capped at 4 percent of allowable parcels citywide, with a stricter 3 percent cap within the National Historic Landmark District. A wait list system will be used once those caps are reached.
Only one short-term rental is allowed per parcel, and properties must be at least 300 feet apart unless they were already operating prior to the ordinance and maintain continuous use.
Accessory structures, including carriage houses and accessory dwelling units, may be used as short-term rentals, subject to the one-per-parcel limit.
Operational rules include a minimum two-night stay, occupancy limits based on bedrooms, restrictions on large gatherings and a prohibition on outdoor amplified music.
Enforcement and accountability
Council emphasized enforcement in the final version.
Property owners or their designated agents must respond to complaints within one hour, and a three-strike policy establishes escalating penalties.
The first violation results in a written warning, the second a $500 fine and the third can lead to suspension, revocation or nonrenewal of the business license.
The ordinance also requires notification to adjacent property owners when a short-term rental is approved and mandates compliance with inspections, parking requirements and local tax obligations.
What changed in the final ordinance
The approved version reflects several changes from earlier drafts, many made in response to public feedback.
Council eliminated the proposed “special exceptions” section, which would have allowed additional short-term rentals under certain circumstances. Residents argued it could create loopholes and undermine the cap system.
Council also revised how limits are calculated. Instead of using dwelling units, the ordinance now uses allowable parcels, setting a 4 percent cap citywide and a 3 percent cap within the historic district.
Existing short-term rentals are counted toward those caps, tightening the overall limit.
The ordinance removes a previous restriction that prohibited short-term rentals in The Point, placing that area under the same 3 percent cap as the rest of the historic district.
Accessory dwelling units are allowed to operate as short-term rentals without requiring the owner to live on the property, though only one short-term rental is allowed per parcel.
The final version also includes a limited incentive for buyers who rehabilitate abandoned or dilapidated properties, allowing those properties to operate as short-term rentals outside the cap if they meet specific criteria and timelines.
Continued debate at second reading
Even as council moved toward final approval, discussion April 28 highlighted disagreement over how the ordinance should be applied.
Council members raised concerns about how the 4 percent cap would function across the city, prompting an amendment to clarify its intent.
Mayor Pro Tem Mike McFee said the goal was not to create a single citywide pool of short-term rentals, but to distribute them more evenly across neighborhoods.
“I intended that to reflect that the individual neighborhoods … would continue to maintain their neighborhood-based caps,” McFee said.
Without that clarification, a single cap could have allowed rentals to concentrate in certain areas while leaving others with few or none. Instead, the ordinance is intended to limit the percentage of rentals within each neighborhood.
Remaining concerns
Even with final approval, some council members signaled concerns about how parts of the ordinance will function in practice.
Discussion included the incentive allowing certain rehabilitated properties to operate outside the cap, raising questions about fairness and whether it could create unintended exceptions.
Council members also noted that some language may need refinement to ensure the ordinance is clear, enforceable and legally defensible as it is implemented.
A long process concludes
Council member Josh Scallate has said the goal was to create a system that is clear, enforceable and balanced.
The ordinance is the result of months of meetings and revisions as council worked to address competing concerns from residents, property owners and business interests.
With final approval in place, the ordinance will take effect following adoption, establishing new rules for how short-term rentals operate within the city.
Delayna Earley, who joined The Island News in 2022, formerly worked as a photojournalist for The Island Packet/The Beaufort Gazette, as well as newspapers in Indiana and Virginia. She can be reached at delayna.theislandnews@gmail.com.