To which of the following transactions does the south carolina vacation rental act apply?

​The sharing economy, also called “collaborative consumption,” lets consumers share access to products or services, rather than having individual ownership. Today’s most well-known collaborative options include Uber, Rideshare, Lyft, Airbnb and HomeAway.

The same concept, but with a different business model, was possible in the past by posting services or products for rent, in a newspaper or in magazine ads, and through internet posts. What’s changed is that transactions now take place through an app on smartphones allowing easier, more convenient and more frequent transactions. The frequency of these transactions creates regulatory and tax issues for the state and local governments.

South Carolina addressed the regulation of ride-booking services with the passage of “transportation network company” legislation in 2015. Now, the challenge is how to accommodate short-term residential rental services, such as Airbnb, Vacation Rentals by Owner, and similar services, while balancing traditional residential property owner and tenant rights, protecting quality of life, and collecting fees and taxes that are due on these business activities.

Since home sharing has the potential to alter the character of established neighborhoods, many communities are carefully considering the best way to accommodate the demand for these new types of lodging, while still protecting the safety of housing, neighborhood character and land planning goals.

Understanding South Carolina’s regulations and tax treatments for short-term residential rentals is an important step before developing sharing-economy rental policies.
For tax purposes, South Carolina has five general types of short-term rentals:

• Hotels and motels. Owners of these commercial properties pay property taxes based on a 6 percent assessment of the value of the property. All taxes, including business license, state accommodations, sales and local accommodations, are owed.
• Rentals of second homes and investment properties. Owners of these properties pay property taxes based on a 6 percent assessment of the value of the property. All taxes, including business license, state accommodations, sales and local accommodations are owed.
• Rentals of primary residential homes between 15 and 72 days per year. The rental days can be consecutive or nonconsecutive. Property owners maintain their primary residential 4 percent property tax assessment. All taxes, including business license, state accommodations, sales and local accommodations are owed.
  
• Rentals of primary residential homes for up to 14 days a year. Property owners maintain their primary residential 4 percent property tax assessment. Owner revenue from these rentals is exempt from all taxation, including business license, state accommodations, sales and local accommodations. However, a travel company, such as Airbnb, HomeAway and VRBO, through which a rental property is booked and paid, owes taxes including business license, state accommodations, sales and local accommodations. Examples include renting a primary residence during the Masters or RBC Heritage golf tournaments or  renting a home for seven college football weekends per year.

• Rentals of six bedrooms or less in a residential home occupied by the home owner. Typically these are home owners who rent out a single bedroom or couch in their primary home through Airbnb or other internet platform. The homeowner maintains his 4 percent property tax assessment. Owner revenue from these rentals is exempt from sales taxes and state and local accommodations taxes. Business license taxes are not exempt under state law, therefore, the homeowner is responsible for paying the tax.

Regardless of the type of short-term rental, travel companies, such as Airbnb and Expedia, through which the rental is booked and paid, owe taxes, including business license, state accommodations, sales and local accommodations. Currently, the S.C. Department of Revenue collects state sales and accommodations taxes from Airbnb. Although travel companies owe these taxes, they are not consistently paying business license taxes or local accommodations taxes to local governments.

Over the last couple of years, more people are now enjoying longer stays at vacation rentals and at single-family rental dwellings while traveling and vacationing.

When a family who has already been quarantining together during the past year needs a break away from home, a vacation property offers them more space, more privacy, and an ability to continue safe social and physical distancing.

If you are planning to rent a property for your next vacation – or an extended stay over the summer – it is important to keep your rights as a renter in mind because they can vary depending on what state you plan to visit.

Typically, there are often more rules in states that have a lot of tourism and vacation amenities, such as South Carolina. When you rent a vacation home in SC, expect to see your rights clearly summarized in the required rental agreement.

In fact, no matter where you plan to go, make sure to sign an agreement prior to remitting a payment. If you are not offered an agreement, request that one be created and read over it carefully. Any and all fees or deposits should be clearly defined – and you should know and understand when you will get your deposit back and under what circumstances. The rental agreement should make clear the condition of the property and it should assure that the property will be clean, safe, and have working utilities and appliances.

There are a multitude of online apps and websites for searching and choosing rentals. Airbnb is one of the most stringent platforms as far as the requirements in making sure that not only the property is safe, but that the renter meets certain criteria as well. When you are selecting where to stay, avoid assuming that every other listing that you see on Craigslist, Facebook Marketplace, HomeAway, or VRBO is legitimate or safe. These apps and websites are great marketing tools, but the listings are not necessarily always verified. There have been scams in which someone posts photos and property descriptions similar to what a real listing would have, but then the guest or renter arrives only to find that there are people living in the home – after the scammer took the money that was paid and disappeared.

It is always worth your extra time to double-check the ownership of a property through the state’s real property database before you sign anything or prior to making a payment. Paying via a credit card is a good idea in case any issues arise, as you will be able to dispute any erroneous charges through your credit card company.

Choosing to contact a licensed vacation rental agency is another way to protect yourself. Real estate offices, property management companies, and rental agencies require the property owners to meet specific requirements and they help to document and enforce standard rental agreements that lay out your rights as a renter.

What if you get injured on someone’s property while on vacation?

If not properly maintained – hotels, motels, vacation rentals, restaurants, convenience stores, and other types of property can pose a serious hazard for tourists. Property owners have a responsibility to maintain the safety of their premises. If they fail to stay on top of maintenance or janitorial responsibilities and someone is harmed as a result, that property owner should be held accountable.

Every year almost 15 million tourists come to spend their vacations in Myrtle Beach or elsewhere along the Grand Strand of South Carolina. Vacation accidents are a reality that can affect almost anyone at any time. The fact is that there are accidents that could even leave people seriously injured. Slip and fall accidents or trip and fall accidents account for the majority of vacation mishaps, but visitors need to also be careful around swimming pools, on balconies, in stairwells, and in parking garages.

If you become harmed while visiting or doing business at someone’s building, premises, or rental property – it’s important to keep a detailed account of what happened. Property owners have the duty to keep their property reasonably safe and should regularly inspect the area for dangerous items or conditions. Dangerous areas need to be repaired, or warning signs posted, so as to help prevent visitors from any harm. Property owners who fail this duty, and fail to warn visitors of danger, may be held liable for injuries and a premises liability lawsuit should be filed.

If you are injured while on vacation by no fault of your own, contact The Floyd Law Firm as your local premises liability recovery attorneys serving Surfside Beach, Myrtle Beach, and throughout South Carolina. Depending on the severity of your injuries, you may be facing extensive and costly medical care – as well as substantial time off from work. You may file suit for compensation to cover any financial losses that resulted from your lost income, your medical treatment, and your pain and suffering. Seeking professional legal guidance is your first and most important step.

Reference

A “vacation rental” refers to a rental period of less than 90 days in duration. Most commonly, “vacation rental” situations are weekly rentals of a resort condominium. The sale of residential property rented for periods of less than 90 days where that/those rental(s) is/are managed by a third-party management company or are self-managed falls under the South Carolina Vacation Rental Act (SC Code §27-50-210 Et Seq.) The purpose of this act is to protect the public welfare by regulating the competing interests of tenants and landlords in such situations.

Which of the following is a duty of a South Carolina listing agent?

What is the consequence for a tenant who damaged a vacation rental property according to the North Carolina Vacation Rental Act?

Which term is used for the individual who conducts the closing quizlet?