By Doug Rich
In Beaufort County, much of the recent debate around short-term rental (STR) regulations has centered on housing availability and community character. But there’s another side to this story that hasn’t received as much attention: the growing number of local vacation property owners left in financial limbo after new restrictions took effect.
With Beaufort’s 6% cap on STR permits in residential areas, many vacation homeowners who once relied on part-time rental income to offset costs are now facing tough choices. These aren’t just speculative investors or corporate landlords. In my experience speaking with property owners across the Carolinas, it’s often retirees and local families who are suddenly left scrambling, often having spent years saving for the perfect family vacation home.
Unexpected financial strain
Over the past year, I’ve heard from a wide range of Beaufort homeowners affected by the cap, people who bought vacation homes assuming they could legally rent them out for part of the year. Many of these families used STR income projections to qualify for mortgages or justify the costs of property taxes and upkeep. Now, without the ability to rent, some are struggling to cover monthly expenses.
Several retirees I’ve spoken with, for example, purchased homes in the Lowcountry planning to spend winters here while renting out their properties in summer to stay financially afloat. Those calculations have been upended. For others, inherited family properties have become unsustainable to maintain, especially with rising insurance premiums and property tax bills.
Selling isn’t always an easy fix, either. Soft market conditions in certain pockets of the county, combined with emotional ties to legacy properties, are making some owners reluctant to sell quickly or at a loss.
Beyond Beaufort: A regional pattern emerges
Beaufort is not alone in imposing stricter rules. We’re seeing similar scenarios unfold across South Carolina. For example, Charleston has a hard cap of 4 adults per STR, regardless of property size, while Folly Beach implemented an 800-permit hard cap in 2024 that has already been reached, with new applications indefinitely wait-listed. In each case, owners who made responsible decisions based on existing rental laws have found themselves stuck after rapid policy changes.
While local governments are rightly concerned about affordable housing and neighborhood stability, these sudden restrictions have left many local vacation homeowners in a bind, often with little warning or support to transition their financial plans.
Exploring alternative solutions
In response, we’re seeing some vacation homeowners turn to creative alternatives. A growing number are exploring fractional ownership structures, where they retain a portion of the property but reduce their carrying costs by sharing ownership with like-minded buyers.Others are converting homes to long-term rentals, though in many cases this fails to generate the same income as seasonal short-term renting.
We’ve also heard from property owners considering property swaps: exchanging partial stakes in their Lowcountry homes for similar properties in areas with more flexible rental laws. These approaches aren’t perfect solutions, but for some, they provide a way to avoid a forced sale or prolonged financial strain.
A need for balance in policy
As more counties across the Carolinas revisit STR regulations, it’s important to recognize the nuance of these local dynamics. Not every STR owner is an investor seeking to flip properties or run mini-hotels. For many, short-term renting was a practical way to afford a family vacation home, preserve a multigenerational property, or retire near the coast.
Going forward, policymakers will hopefully consider targeted strategies, like grandfathering provisions or limited-use allowances, to soften the blow on residents who made decisions under very different regulatory assumptions. A one-size-fits-all cap may address some housing challenges, but it also risks unintended financial hardship for a segment of homeowners who are still a part of the fabric of these communities.
The Beaufort STR debate is ultimately about more than just zoning and permits, it’s about balancing housing goals with the economic realities faced by local families. That conversation deserves more attention, and more empathy ahead.
Doug Rich is CEO of Plum CoOwnership, a tech-enabled platform that makes it easy for people to buy, sell, and manage fractional shares of vacation homes through structured co-ownership arrangements. You can sign up to his newsletter at https://dougrichplum.beehiiv.com/subscribe.
