Is Spartanburg, South Carolina Good for Airbnb Investment?

To start an Airbnb in Spartanburg, South Carolina, begin by researching local regulations as the city requires short term rental operators to obtain a business license from the City of Spartanburg and comply with zoning ordinances that may restrict rentals in certain residential areas.

Launch checklist

• Contact the Spartanburg Planning Department at 864 to 596 2040 to verify your property's zoning allows short term rentals and obtain necessary permits including a business license ($50 to 100 annually) and potentially a conditional use permit if required.
• Find a suitable property by searching areas near downtown Spartanburg, Converse College, or Wofford College where demand is higher, considering properties priced between $80,000 to $200,000 for good investment potential.
• Furnish the space with quality basics including comfortable beds, linens, towels, kitchen essentials, WiFi, and local guidebooks, budgeting approximately $3,000 to $8,000 for a complete setup.
• List your property on Airbnb and VRBO with professional photos highlighting Spartanburg's proximity to BMW Manufacturing, Hub City attractions, and outdoor activities, pricing competitively at $60 to $120 per night based on local market rates.
• Manage your listing by responding to inquiries within an hour, maintaining a 4.8+ star rating, coordinating cleaning between guests (budget $30 to $50 per turnover).

To identify profitable short term rental properties in Spartanburg, South Carolina, focus on locations within 10 to 15 minutes of downtown, near Wofford College, Converse University, or the growing medical district around Spartanburg Medical Center, as these areas generate consistent demand from business travelers, visiting families.

What to prioritize

• Target 2 to 4 bedroom single family homes or condos built after 1990 with modern amenities, parking, and outdoor spaces, as properties near the Hub City Railroad Museum and Morgan's Point Resort on Lake Bowen command premium rates.
• Analyze comparable nightly rates using AirDNA and Mashvisor, targeting properties that can achieve $80 to 150 per night depending on size and location, with occupancy rates of 60 to 75% being realistic for well positioned properties.
• Research competition by studying existing Airbnb and VRBO listings within a 3 mile radius, identifying gaps in amenities or underserved areas, particularly around the BMW manufacturing plant in nearby Greer which drives corporate travel demand.
• Utilize tools like Rabbu, AirDNA, and local MLS data through Spartanburg Board of Realtors, while connecting with property management companies like Vacasa or RedAwning who operate in the market.

To obtain an Airbnb/STR permit in Spartanburg, South Carolina, you must first contact the Spartanburg City Planning Department at City Hall located at 145 W Broad Street to determine if short term rentals are permitted in your specific zoning district.

Documents and approvals

• Submit an application for a conditional use permit along with a detailed site plan, proof of property ownership or lease agreement, a floor plan showing the rental space, parking plan demonstrating adequate off street parking.
• Required documents include a completed application form, property survey, photographs of the interior and exterior, proof of liability insurance with minimum $1 million coverage, and a good neighbor agreement outlining house rules and noise policies.
• The application fee is approximately $500 to 750 for the conditional use permit, plus additional fees for public notices estimated at $200 to 300.
• You must also obtain a business license from the City Clerk's office for around $50 to 100 annually and register for local accommodations tax collection.
• The timeline typically takes 60 to 90 days as applications require public notification, planning commission review, and potential city council approval.
• Spartanburg specific requirements include maintaining a guest registry, posting maximum occupancy limits, providing 24/7 local contact information, ensuring compliance with fire safety codes.

Short term rentals (STRs) are generally legal in Spartanburg, South Carolina, as the city has not implemented a comprehensive ban on such properties.

Core operating requirements

• However, STRs must comply with existing zoning regulations and business licensing requirements, with most residential areas allowing them as accessory uses to primary residences.
• The city requires STR operators to obtain proper business licenses and adhere to occupancy limits, parking requirements, and noise ordinances.
• Certain historic districts and neighborhoods may have additional restrictions through homeowners associations or overlay districts.
• As of 2023 to 2024, Spartanburg has been considering more specific STR regulations similar to other South Carolina cities like Charleston and Greenville, which have implemented registration systems and operational standards.
• Property owners should verify current zoning compliance and may need to register with the city, maintain liability insurance, and ensure properties meet safety codes.

The best areas for Airbnb investment in Spartanburg, South Carolina include the Historic Downtown District, which attracts visitors to the Hub City Railroad Museum, local festivals, and business travelers to nearby corporate headquarters like BMW Manufacturing and Milliken & Company; the Converse Heights neighborhood.

In Spartanburg, South Carolina, Airbnb hosts are subject to both state and local lodging taxes.

Taxes and filing responsibilities

• The South Carolina state accommodations tax is 7% on gross rental receipts, which applies to all short term rentals under 90 days.
• Spartanburg County imposes an additional 2% accommodations tax, bringing the total lodging tax to 9%.
• The City of Spartanburg may impose an additional 1 to 3% local accommodations tax depending on the specific location within city limits, potentially reaching 10 to 12% total.
• These taxes are collected from guests at the time of booking, with Airbnb automatically collecting and remitting state and many local taxes on behalf of hosts through their platform since approximately 2019.
• For taxes not automatically collected by Airbnb, hosts must register with the South Carolina Department of Revenue and local tax authorities, file monthly returns, and remit taxes by the 20th of the following month.
• Exemptions typically include stays of 90 days or longer, which are considered long term rentals in preference to transient accommodations, and rentals to certain government employees on official business, though documentation requirements apply for exemptions.

To start an Airbnb in Spartanburg, South Carolina, expect total costs of approximately $180,000 to $220,000.

Cost breakdown

• Property purchase costs around $150,000 based on median home prices in the area as of 2023.
• Furnishing a 2 to 3 bedroom property typically runs $8,000 to $12,000 including furniture, appliances, linens, and decor from retailers like IKEA, Wayfair, and local stores.
• Initial setup costs including professional photography, listing creation, and basic renovations total $2,000 to $4,000.
• Permits and fees including business license, short term rental permit, and tax registration cost approximately $500 to $800 through Spartanburg County and city offices.
• Insurance including landlord and short term rental coverage runs $1,200 to $2,000 annually.
• Utilities setup and deposits for electricity, water, internet, and cable cost around $500 to $800.
• First six months operating costs including utilities ($600/month), cleaning services ($100 per turnover), supplies and maintenance ($200/month), platform fees to Airbnb and VRBO (3% of bookings).

Airbnb properties in Spartanburg, South Carolina typically generate annual revenues between $15,000 to $35,000 for entire homes, with average daily rates ranging from $75 to $120 depending on property size and location proximity to Wofford College and downtown areas.

Profitability indicators

• Operating expenses generally consume 40 to 60% of gross revenue, including cleaning fees ($25 to $40 per turnover), property management (10 to 20% of revenue), utilities ($150 to $250 monthly), insurance ($800 to $1,200 annually).
• Properties near Wofford College and the downtown Hub City district achieve higher occupancy rates of 60 to 75% annually, while suburban locations average 45 to 60% occupancy.
• Successful hosts in Spartanburg typically achieve net profit margins of 15 to 25% after all expenses, with properties featuring modern amenities, professional photography, and proximity to BMW Manufacturing plant visitor traffic performing best.
• A typical 3 bedroom home purchased for $180,000 and generating $28,000 annual revenue with $18,000 in total expenses yields approximately $10,000 net profit, representing a 5.6% return on investment before considering property appreciation, though success heavily depends on active management.

Airbnb investments in Spartanburg, South Carolina typically generate annual ROI of 8 to 12% with cash on cash returns ranging from 6 to 10% based on current market conditions.

Return planning figures

• Properties in desirable neighborhoods near downtown Spartanburg or close to Wofford College and Converse University tend to perform better, with average daily rates of $75 to 120 and occupancy rates of 60 to 75% annually.
• Initial investment recovery and profitability usually occurs within 18 to 24 months, depending on property acquisition costs, renovation expenses, and management efficiency.
• The market benefits from proximity to BMW Manufacturing, Spartanburg Regional Healthcare System, and Hub City Railroad Museum, which drive consistent demand from business travelers and tourists.
• Properties purchased in the $100,000 to 200,000 range with 20 to 25% down payments typically see monthly net cash flows of $300 to 800 after expenses including mortgage, utilities, cleaning, and platform fees.

STRSearch is a leading national platform that specializes in identifying profitable short term rental properties for investors in Spartanburg, South Carolina.

Companies and resources

• Local real estate agents like Keller Williams Spartanburg and RE/MAX Spartanburg have agents experienced in investment properties, while Century 21 Blackwell & Co.
• Realty offers specialized investor services in the area.
• National services include Awning, which provides end to end Airbnb investment solutions, RedAwning for vacation rental property acquisition, and Mashvisor for market analysis and property recommendations.
• Local property management companies like Upstate Property Management and Carolina Property Management Group often assist investors in finding suitable properties.
• Real estate investment firms such as Roofstock and BiggerPockets marketplace connect investors with Spartanburg properties, while AirDNA provides market data and analysis for short term rental investments.
• Local agents specializing in investment properties include those at Coldwell Banker Caine and EXIT Realty Spartanburg, who understand the vacation rental market dynamics in the greater Spartanburg and Blue Ridge Mountains region.