Hilton Head council approves first reading of revised short-term rental rules, removes occupancy cap and narrows alarm requirement

Town Council of Hilton Head Island on Oct. 13 approved on first reading a rewritten ordinance replacing Title 10, Chapter 2 of the municipal code that governs short-term rentals (STRs), adopting committee-recommended changes that remove an occupancy limit, cap exterior parking and revise fire-alarm requirements.

The ordinance, presented by town staff during the special meeting, keeps the town’s long-standing definition of STRs (residential property rented for less than 30 consecutive days) and preserves the permit requirement but changes several application, safety and advertisement rules. The council adopted three amendments: removal of section 10-2-60(c) and other references to occupancy limits; limiting permitted parking to a maximum of six exterior parking spaces per site; and altering the fire‐alarm requirement language to require systems that meet “the intent” of national fire alarm signaling standards while removing a required manual pull-station requirement.

Why it matters: Council members and dozens of residents debated the changes for hours as part of a broader discussion about neighborhood character, enforcement and the local economy. Short-term rentals account for a large share of visitor lodging on the island; owners, property managers and businesses warned that occupancy caps and fee increases could reduce visitor spending, while residents and some council members argued for stronger safety and neighborhood protections.

Most important provisions and deadlines - Permit and fee structure: The ordinance retains a permit requirement prior to advertising an STR. The Community Development and Public Services Committee…