Is Rosewood, South Carolina Good for Airbnb Investment?

To start an Airbnb in Rosewood, South Carolina, begin by researching local regulations through Richland County and the Town of Rosewood, as short-term rentals may require business licenses and zoning compliance - contact Richland County Planning Department at (803) 576-2085 to verify if your property is zoned for short-term rentals and obtain necessary permits which typically cost $50-150 annually. Find a suitable property by searching residential areas near Lake Murray or downtown Columbia (15 minutes away) with good access to I-26, focusing on 2-3 bedroom homes or condos priced between $150,000-300,000 that can generate $80-150 per night. Furnish the space with quality basics including comfortable beds, linens, towels, kitchen essentials, WiFi, smart TV, and local touches like Lake Murray artwork, budgeting $8,000-15,000 for complete furnishing. Create your Airbnb listing with professional photos highlighting proximity to Lake Murray recreation, Columbia attractions, and University of South Carolina (20 minutes), setting competitive rates based on comparable properties in nearby Irmo or Lexington. For management, establish check-in procedures using smart locks, maintain cleaning schedules between guests, respond promptly to inquiries, and consider hiring local cleaning services like those serving the greater Columbia area - ensure you collect and remit applicable state sales tax (currently 6%) and local accommodation taxes to the South Carolina Department of Revenue, while maintaining proper insurance coverage that includes short-term rental liability protection.

To identify profitable short-term rental properties in Rosewood, South Carolina, focus on properties within 2-3 miles of downtown Columbia and USC campus, as this proximity drives consistent demand from business travelers, university visitors, and tourists exploring the capital region. Target 2-4 bedroom homes built after 1990 with modern amenities like updated kitchens, reliable Wi-Fi, parking, and outdoor spaces, as these features command premium rates of $80-150 per night in the Rosewood market. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds long-term rental income by 40-60%, typically achievable with occupancy rates of 65-75% in this market. Research competition within a 3-mile radius using Airbnb and VRBO searches, looking for gaps in availability during USC football seasons, state government events, and summer months when demand peaks. Utilize tools like BiggerPockets for investment analysis, Zillow and Realtor.com for property identification, and local resources including Richland County tourism data and Columbia Regional Business Report market insights, while ensuring compliance with local zoning laws and HOA restrictions that may limit short-term rentals in certain Rosewood neighborhoods.

To obtain an Airbnb/STR permit in Rosewood, South Carolina, you must first contact the Rosewood Town Hall at 803-356-7011 or visit their office at 525 Main Street to inquire about short-term rental regulations, as this small town may have recently implemented STR ordinances around 2022-2023. You'll likely need to submit an application form along with required documents including proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, parking plan showing adequate guest parking, and contact information for a local property manager if you live more than 50 miles away. The application fee is estimated at $150-250 annually, with additional inspection fees of approximately $75-100. You must also register with the South Carolina Department of Revenue for state accommodations tax collection and obtain a business license from Fairfield County if required. The approval timeline typically takes 30-45 days after submitting a complete application, during which the town will conduct a safety inspection and review compliance with zoning requirements, occupancy limits (usually 2 guests per bedroom plus 2 additional), and parking standards (typically 1 space per bedroom). Once approved, you'll receive a permit that must be renewed annually and displayed prominently in the rental property, with ongoing requirements to maintain insurance, collect and remit local accommodations taxes, and respond to any neighbor complaints within 24 hours.

Short-term rentals (STRs) are generally legal in Rosewood, South Carolina, as the small unincorporated community in Richland County operates under county and state regulations rather than specific municipal ordinances. Richland County allows STRs but requires operators to obtain proper business licenses and comply with zoning restrictions, typically limiting them to areas zoned for commercial or mixed-use rather than strictly residential neighborhoods. Properties must meet safety standards including smoke detectors, carbon monoxide detectors, and occupancy limits, while operators are required to collect and remit state and local accommodation taxes. Recent changes in South Carolina since 2019-2020 have strengthened local governments' ability to regulate STRs through zoning and licensing requirements, though the state generally maintains a business-friendly approach to vacation rentals. Given Rosewood's rural character and limited commercial zoning, most residential properties would need to verify their specific zoning designation and obtain county approval before operating as STRs, with potential restrictions in purely residential areas to maintain neighborhood character.

The best areas for Airbnb investment in Rosewood, South Carolina include the historic downtown district near the Rosewood Market area, which attracts visitors interested in local culture and antique shopping, and properties within walking distance of Dreher Island State Park (approximately 15 minutes away), capitalizing on outdoor recreation tourism and Lake Murray activities. The residential neighborhoods along Old State Road and Camping Creek Road offer attractive investment opportunities due to their proximity to Columbia metropolitan area business travelers and University of South Carolina visitors, while areas near the Congaree River provide appeal for fishing and boating enthusiasts. Properties close to the annual Rosewood Crawfish Festival venue and near local wineries like Mercer House Estate Winery draw seasonal tourism, and neighborhoods with easy highway access to I-77 and I-26 are particularly valuable for capturing both leisure travelers exploring the Midlands region and business professionals working in nearby Columbia, Lexington, and West Columbia.

Airbnb properties in Rosewood, South Carolina are subject to multiple lodging taxes including the state accommodations tax of 2% collected by the South Carolina Department of Revenue, Richland County's accommodations tax of 2%, and potentially a local municipal accommodations tax if Rosewood has enacted one (estimated at 1-3%). These taxes apply to gross rental receipts and are typically collected from guests at the time of booking through Airbnb's automatic tax collection system, which remits payments directly to the appropriate tax authorities on behalf of hosts. Hosts must register with the South Carolina Department of Revenue and obtain a retail license, file monthly returns by the 20th of the following month, and maintain detailed records of all rental transactions. Exemptions generally include stays exceeding 90 consecutive days (considered long-term rentals rather than transient accommodations) and rentals to certain government employees on official business, though hosts should verify current exemption criteria as they can change and may vary by jurisdiction.

Starting an Airbnb in Rosewood, South Carolina requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000-180,000 based on median home prices in the Columbia metro area where Rosewood is located. Furnishing a 2-3 bedroom property typically costs $8,000-12,000 including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup expenses of $1,500-2,500 cover professional photography, listing creation, welcome materials, and basic supplies. Permits and fees total approximately $500-800 including business license, short-term rental permits, and any required inspections. Insurance costs $1,200-1,800 annually for landlord and short-term rental coverage. Utility setup and deposits require $300-500 for electricity, water, internet, and cable services. First six months of operating costs including utilities ($900), cleaning services ($1,800), maintenance ($600), property management software ($300), and marketing ($400) total approximately $4,000. Additional considerations include potential HOA fees, property taxes, and a cash reserve for unexpected expenses or vacancy periods.

Airbnb properties in Rosewood, South Carolina typically generate annual revenues between $15,000-$35,000 for entire homes, with average daily rates ranging from $85-$150 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($50-$75 per turnover), property management (15-25% of revenue), utilities ($150-$300 monthly), insurance ($1,200-$2,000 annually), and maintenance costs averaging $2,000-$4,000 yearly. Net profit margins typically range from 15-35% for well-managed properties, with successful hosts achieving occupancy rates of 60-75% annually. Success factors in this Columbia suburb include proximity to University of South Carolina (driving demand during football season and graduation periods), competitive pricing against nearby hotels, professional photography, responsive guest communication, and maintaining consistent 4.8+ star ratings. Properties within walking distance of Rosewood's antique district or featuring unique amenities like pools or pet-friendly policies command premium rates, with some hosts reporting 20-30% higher revenues than basic listings. The market benefits from steady demand from business travelers, university visitors, and tourists exploring the greater Columbia area, though seasonality affects performance with peak months typically being September-November and March-May.

Based on Rosewood, South Carolina market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% depending on property type and location within the area. Properties near Lake Murray and recreational areas tend to perform at the higher end of this range, while standard residential properties average closer to 10-12% annual returns. Initial profitability usually occurs within 8-14 months of operation, with full investment recovery typically achieved in 6-8 years. The market benefits from consistent demand from lake visitors, Columbia metropolitan area overflow, and seasonal tourism, with occupancy rates averaging 65-75% annually and average daily rates between $85-$140 depending on property size and amenities. Properties requiring minimal renovation show faster paths to profitability, while those needing significant updates may extend the break-even timeline to 12-18 months but often achieve higher long-term returns of 15-20% annually.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Rosewood, South Carolina. Local real estate agents specializing in investment properties include Coldwell Banker Realty agents in the Columbia area, Keller Williams Capital City Realty investors specialists, and RE/MAX Real Estate Consultants who focus on vacation rental properties. National services like Mashvisor offer property analysis tools, while AirDNA provides market data and revenue projections for the Rosewood area. RedAwning and Vacasa offer property management services for investors, and companies like BiggerPockets connect investors with local professionals. Local property management companies such as Midlands Property Management and Columbia Area Vacation Rentals help investors maximize their returns. Real estate investment firms like HomeVestors and national platforms such as Roofstock occasionally feature properties in the greater Columbia-Rosewood region suitable for short-term rental conversion.