Is Pawleys Island, South Carolina Good for Airbnb Investment?

To start an Airbnb in Pawleys Island, South Carolina, begin by researching Georgetown County's short-term rental regulations, which typically require a business license ($50-100 annually) and compliance with zoning ordinances that may restrict rentals in certain residential areas. Contact Georgetown County Planning Department at 843-545-3273 to verify your property's zoning allows short-term rentals and obtain necessary permits including a short-term rental permit ($200-300) and fire safety inspection. Find a suitable property within 1-2 miles of the beach, with 2-4 bedrooms typically renting for $150-400 per night depending on proximity to the ocean and amenities. Furnish the property with coastal-themed decor, quality linens, full kitchen appliances, WiFi, and beach equipment like chairs and umbrellas, budgeting $15,000-30,000 for a complete setup. Create your Airbnb listing with professional photos highlighting ocean views, beach access, and local attractions like Brookgreen Gardens and Huntington Beach State Park, setting competitive rates based on seasonal demand (peak summer rates 40-60% higher than off-season). For management, either handle bookings, cleaning, and guest communication yourself or hire local property management companies like Vacasa or RedAwning who charge 20-35% commission but provide full-service management including 24/7 guest support, professional cleaning between stays, and maintenance coordination.

To identify profitable short-term rental properties in Pawleys Island, South Carolina, focus on oceanfront or marsh-view locations within walking distance to the beach, particularly along the Hammock Coast between Huntington Beach State Park and Litchfield Beach, as these command premium rates of $200-400 per night during peak summer months. Target 3-6 bedroom properties built after 1990 with modern amenities, private pools, golf cart accessibility, and parking for multiple vehicles, as families and groups comprise 70% of visitors seeking authentic Lowcountry experiences. Analyze comparable properties using AirDNA and Mashvisor to identify optimal pricing strategies, noting that successful properties average 65-75% occupancy with gross yields of 8-12% annually, while monitoring seasonal fluctuations where summer rates can be 3x higher than winter months. Research competition through Airbnb, VRBO, and local management companies like Pawleys Island Realty and Litchfield Real Estate, identifying gaps in luxury amenities or underserved price points between $150-250 nightly rates. Utilize STR-specific tools like Rabbu and PriceLabs for dynamic pricing, partner with local property managers familiar with Georgetown County regulations, and leverage tourism data from the South Carolina Department of Parks, Recreation & Tourism showing Pawleys Island's consistent 4-6% annual visitor growth, while ensuring compliance with local zoning laws and HOA restrictions that may limit rental activities in certain developments.

To obtain an Airbnb/STR permit in Pawleys Island, South Carolina, you must first contact the Town of Pawleys Island Planning Department at Town Hall located at 323 Myrtle Avenue, as the town requires a Special Exception permit for short-term rentals in residential zones. Submit an application including a completed Special Exception form, site plan showing parking areas and property boundaries, proof of property ownership or lease agreement, floor plans indicating maximum occupancy, and a $350 application fee. Required documents also include a business license application, certificate of insurance with minimum $1 million liability coverage, septic system inspection if applicable, and a parking plan showing at least two off-street spaces per unit. The application undergoes a 30-45 day review process including neighbor notification requirements and potential Planning Commission hearing. Pawleys Island specific requirements include maximum occupancy limits of 2 people per bedroom plus 2 additional guests, no events or parties allowed, quiet hours from 10 PM to 8 AM, and mandatory posting of house rules including emergency contact information. Once approved, you must also obtain a Georgetown County business license ($50-100 annually) and register with the South Carolina Department of Revenue for accommodations tax collection, with the entire process typically taking 60-90 days from initial application to final approval.

Short-term rentals (STRs) are legal in Pawleys Island, South Carolina, but operate under Georgetown County's regulations since the town itself has limited municipal oversight. As of 2023, Georgetown County requires STR operators to obtain a business license and comply with occupancy limits, parking requirements, and noise ordinances. Properties must meet safety standards including smoke detectors and emergency egress requirements. The county prohibits STRs in certain residential zones and requires a minimum 7-day rental period in some areas to maintain neighborhood character. Recent changes in 2022 included stricter enforcement of the business license requirement and enhanced penalties for violations, with fines up to $500 per day for non-compliance. STR operators must also collect and remit accommodations taxes, and properties are subject to regular inspections. While not prohibited outright, the regulatory framework has become more stringent in response to community concerns about over-tourism and impacts on permanent residents, particularly in historic and residential areas near the beach.

The best areas for Airbnb investment in Pawleys Island, South Carolina include the beachfront district along the Atlantic Ocean where properties command premium rates due to direct beach access and stunning ocean views, attracting summer vacationers and weekend getaways year-round. The historic Pawleys Island village area offers charm with its traditional beach cottages and proximity to the famous Pawleys Island Hammock shops, appealing to tourists seeking authentic Lowcountry experiences. The south end near Litchfield Beach provides excellent investment potential due to its proximity to championship golf courses like Caledonia Golf & Fish Club and True Blue Golf Club, attracting golf tourism particularly during spring and fall seasons. The area near Brookgreen Gardens and Huntington Beach State Park draws nature enthusiasts and families, providing steady occupancy from educational tourism and outdoor recreation visitors. Properties near the causeway and mainland side offer more affordable investment options while still providing easy beach access, appealing to budget-conscious families and longer-term stays, with additional draw from nearby Murrells Inlet's restaurant scene and fishing charters creating diverse guest demographics throughout the tourist season from March through October.

Airbnb properties in Pawleys Island, South Carolina are subject to multiple lodging taxes including the state accommodations tax of 2% and Georgetown County's accommodations tax of 3%, totaling 5% in combined lodging taxes on gross rental receipts. The state tax applies to stays of 90 days or less, while the county tax typically applies to short-term rentals under 30 days. These taxes are generally collected by Airbnb directly from guests at the time of booking and remitted to the appropriate tax authorities on behalf of hosts through Airbnb's automated tax collection service, which began in South Carolina around 2018. Hosts must register with the South Carolina Department of Revenue and Georgetown County to obtain the necessary tax licenses, and while Airbnb handles collection and remittance for most bookings made through their platform, hosts remain responsible for ensuring compliance and may need to file returns even when taxes are collected by Airbnb. Exemptions typically include stays exceeding 90 consecutive days for state tax purposes and certain government or charitable organization bookings, though hosts should verify current exemption criteria with local tax authorities as regulations can change.

The total cost to start an Airbnb in Pawleys Island, South Carolina is approximately $485,000-$565,000. Property purchase costs range from $350,000-$450,000 based on median home prices for vacation rental suitable properties near the beach. Furnishing costs typically run $25,000-$35,000 for a complete 3-4 bedroom coastal home including furniture, appliances, linens, and decor. Initial setup expenses including professional photography, listing creation, and marketing materials cost around $2,000-$3,000. Permits and fees including business license, short-term rental permit, and Georgetown County requirements total approximately $500-$800 annually. Insurance for short-term rental properties runs $3,000-$4,500 per year, significantly higher than standard homeowner's insurance. Utility setup and deposits for electricity, water, internet, and cable cost around $1,000-$1,500. First six months operating costs including utilities ($1,800), cleaning services ($3,600), maintenance and supplies ($2,000), property management if used ($6,000), and marketing ($1,000) total approximately $14,400. Additional considerations include potential HOA fees ($1,200-$2,400 annually) and property taxes ($3,500-$4,500 annually) that impact ongoing profitability.

Airbnb properties in Pawleys Island, South Carolina typically generate annual revenues between $35,000-$65,000 for oceanfront properties and $20,000-$40,000 for properties within 1-2 blocks of the beach, with peak summer months (June-August) commanding nightly rates of $200-$400 for beachfront homes and $120-$250 for inland properties. Operating expenses generally range from 40-55% of gross revenue, including property management fees (15-25%), cleaning costs ($75-$150 per turnover), utilities ($200-$400 monthly), insurance ($2,000-$4,000 annually), maintenance and repairs (8-12% of revenue), and local accommodation taxes (7-9%), resulting in net profit margins of 25-35% for well-managed properties. Success factors include proximity to the beach (properties within 200 yards typically outperform by 40-60%), professional photography, responsive property management, and amenities like private pools, golf cart access, and updated kitchens, with several property owners near the Pawleys Island Pier reporting occupancy rates of 70-85% during 2022-2023 and annual net profits of $25,000-$45,000 on properties valued between $400,000-$800,000, though performance varies significantly based on property condition, marketing effectiveness, and seasonal demand fluctuations.

Airbnb investments in Pawleys Island, South Carolina typically generate annual ROI of 12-18% based on the area's strong vacation rental market driven by beach tourism and proximity to Myrtle Beach. Cash-on-cash returns generally range from 8-14% annually, with properties averaging $150-300 per night during peak summer season (June-August) and $80-150 during shoulder seasons. Most investors achieve profitability within 18-24 months, with oceanfront or marsh-view properties commanding premium rates and faster returns. The market benefits from consistent demand from Charleston and Charlotte metro areas, with occupancy rates typically reaching 65-75% annually. Properties purchased in the $300,000-600,000 range with 20-25% down payments show the strongest performance metrics, while those requiring significant renovations may extend profitability timelines to 30-36 months but can achieve higher long-term returns of 15-22% once stabilized.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors, including in Pawleys Island, South Carolina. Local real estate agents who focus on investment properties in the Pawleys Island area include Century 21 The Harrelson Group, Keller Williams Realty, and Coldwell Banker Chicora Advantage, with agents like those at Pawleys Island Realty and Garden City Realty having expertise in vacation rental properties. National services that help investors find Airbnb properties include Mashvisor, which provides rental property analytics, AirDNA for market data and investment analysis, and Roofstock for turnkey rental properties. Additional local services include Pawleys Island Property Management for ongoing rental management, Coastal Property Solutions for investment consulting, and regional firms like Dunes Properties and Litchfield Real Estate that understand the Grand Strand vacation rental market dynamics and can identify properties with strong rental potential in this popular South Carolina coastal destination.