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A months-long discussion came to an end Tuesday night as voters decided on the fate of short-term rentals on Folly Beach.

FOLLY BEACH, S.C. (WCSC) - A months-long discussion came to an end Tuesday night as voters decided on the fate of short-term rentals on Folly Beach.

Just 78 votes ended up separating the debate of the number of short-term rental licenses allowed on Folly Beach. The final vote rang Tuesday night after lines at the polls began at 7 a.m. officially capping the number of rentals, like condos and Airbnbs, to 800 across the island.

There were more than 1,200 people that voted, which is about half of the number of registered voters on the island.

“This is probably the most people I’ve ever seen vote, even in a presidential election, that I can remember,” Goodwin said.

This special citizen vote tallies 655 voters for the cap on short-term rentals and 577 against it.

This issue stems back to October when a citizen petition to cap the number of short-term rentals came to city council, which was then put up to a citizen vote.

Ann Peets, who supports the cap, says she doesn’t want the permanent residents leaving because of disruptive renters.

“It’s a very tight-knit community and we feel like if people keep leaving that’s going to be lost,” Peets said.

Those against the cap on rentals, like Elton Culpepper, says he doesn’t want his kids to not have a rental option on inherited property.

“I feel like the property value will go down and they should be able to short term rental it,” Culpepper said.

Bill Murschel says he’s been renting on the island for over 25 years. Although he could not vote, he says he worries how this would affect his vacations.

“I don’t want to be priced out of the market,” Murschel said. “I want to have plenty of choices when I contact a local real estate office and pick my place.”

Mayor Goodwin says he signed the original petition and voted for the STR cap.

“We know they bring in tax dollars,” Goodwin said. “We never want to see short term rentals go away totally. It’s just where do you want your city to be in reference to a community versus businesses.”

He was asked if he thinks this will have any effect on people investing on Folly Beach in the future.

“I don’t think so,” Goodwin said. “You know, before this got started, like I said, the number was 800. That didn’t stop people from buying and selling out here... Nobody’s going to be totally happy with the vote. So, now it’s just a matter of the community coming back together and healing and let’s get on with the rest of the world.”

Goodwin says it will take several years for the number of current STRs to dwindle down to 800 from either people selling their property or no longer renewing their licenses. He says there’s currently around 1,200 on the island.

The vote will be certified on Thursday and will immediately take effect.

Copyright 2023 WCSC. All rights reserved.

FOLLY BEACH — In a referendum locals viewed as a battle for the future of this barrier island, Folly Beach residents narrowly voted to limit the number of short-term rentals that can operate on one of Charleston’s most popular beach communities.

The vote for tighter restrictions is expected to slowly shrink the number of short-term rentals that can operate here.

“It looks like the citizens want to have a year-round community, not just a weekly community,” Mayor Tim Goodwin said after the results were in.

A narrow majority of voters, 53 percent, said “yes” to the only question posed by the Feb. 7 referendum. The results will be certified on Feb. 9.

Island residents were asked to decide whether short-term rental licenses on Folly Beach should be capped at 800.

According to unofficial returns from the Charleston County Board of Elections, just 77 votes separated the results.

Some 655 of the island’s registered voters agreed with the restrictions, compared to 578 who did not want to see the limit imposed.

At the heart of the one-question issue was a central concern shared by many Charleston-area beach communities: How do communities balance all that comes with being a tourist destination while still preserving what makes a place special?

Tuesday’s vote adds a fresh layer of local oversight but the impact of the decision could take years to materialize. Goodwin and city staff estimate it could take about three years for Folly Beach to drop down to that 800-mark.

Property owners have had to apply for short-term rental licenses since 2018. Currently, there are more than 1,100 active licenses on the barrier island, which accounts for some 40 percent of the island’s properties.

Under the proposed ordinance, owners with short-term rental licenses may continue to operate and keep their licenses until there’s a transfer to a new owner or family member. No new short-term licenses would be granted until the number of active permits falls below 800 — a figure based on the number of pre-pandemic licenses in 2020.

A waiting list would be established for future permits, but there are a lot of unanswered questions about further specifics or effects the limit would have.

Katherine Meader, who is one of those owners, voted “no” to the cap. As a mother of five, she said her vote was about protecting the future of her five children.

“They’re the ones who are going to carry it on. I just want them to be able to do the same thing that their mom has done without having to get in line behind someone who may have moved here a year ago,” she said. “I don’t want my kids to have to get back in line to apply for a license that might already be at its cap.”

Others saw short-term rentals and the flow of transient guests staying in them as a threat to the established community and its longtime residents who don’t want new neighbors every week.

Two advocate groups were especially vocal about the vote: Save Folly’s Future, which was pushing for the cap; and Folly United, which opposed the cap proposal.

Neither leader of the rival vote efforts could cast a ballot because they do not live on Folly Beach, but pro-cap John McFarland sat outside the polling place from 11 a.m. until polls closed at 7 p.m.

For Colleen Lamar, the vote “yes” was about preserving a place she loves.

“This will be my home until they carry me out in a box,” she said.

The referendum, at times, pitted neighbor against neighbor, with dueling yard signs along residential streets.

Folly is the latest beach community to make a decision about how to handle short-term rentals. Sullivan’s Island banned short-term rentals more than two decades ago. Isle of Palms could be next. On Feb. 6, the eve of the Folly Beach vote, a roomful of people attended a special workshop hosted by Isle of Palms City Council on short-term rentals.

Reach Caitlin Byrd at 843-998-5404 and follow her on Twitter @MaryCaitlinByrd.

FOLLY BEACH, S.C. (WCIV) — Folly beach residents will vote on whether to limit short-term rentals Tuesday.

If the vote to limit short-term rentals passes, there will only be 800 short-term rental licenses for the city.

The group Save Folly’s Future is asking residents to vote yes.

"In the last 10 years, Folly Beach has lost about 20% of our residents. That's because people are choosing not to live here because of the continued growth of short-term rentals and investment properties," Chuck Skipper with the Folly Beach Residents Association said.

Those in favor of capping short-term rentals believe it’ll preserve the quality of life on folly beach and will reduce loud, transient turnovers.

"None of us want to stop rentals. That's part of the culture here. But I would just tell you that we want to have a safe, healthy place to raise our families and a great place for our grandkids to come to visit us. And when we walk outside, we want to talk to neighbors, not strangers," Skipper said.

They also say by voting yes, the property values will be preserved.

The group Folly United is asking residents to vote no.

"A lot of people bought homes here as their second home with the intention of retiring here when they can, and in the meantime, they rent their houses out so that they can they can afford to be able to retire here at some point. And I just think that, that this cap is kind of taking a sledgehammer when maybe a scalpel is a better approach," Jody Rogers with Folly United said.

Rogers contends Folly Beach City Council recently passed ordinances that address nuisances without negatively impacting everyone who owns the property.

"They've hired enforcement officers. To me, if there is a nuisance short-term renter, enforcing the laws and the ordinances we have in the in the book should take care of that. And if there is a bad landlord, or someone that is not really making sure that their tenants are obeying the rules, they've got the three strike system they'll lose their license," Rogers said.

Those who want a no-vote say short-term rentals are more beneficial because they feed Folly’s economy.

Now, it’ll be up to voters to decide what should happen.

Polls will be open tomorrow from 7 a.m. To 7 p.m. At Baptist Fellowship Hall.

The results will be certified on Thursday, February 9th.

FOLLY BEACH — In the beachfront community known as the “Edge of America,” many residents and property owners remain on edge as a vote approaches that could limit vacation rentals.

A referendum is scheduled Feb. 7. While there are only two options on the ballot — to cap short-term rentals, or not — there are many sides to the impassioned debate.

Along the streets weather-worn homes stand next to remodeled beach cottages and framework for new homes. Yards are lined with blue and white signs — each serving as a clear stance supporting or opposing a short-term rental cap that often varies from neighbor to neighbor.

The city prides itself as “Charleston’s Beach Town,” but some are second-guessing where to draw the line on overnight visitors. Much like Folly Beach’s new $14 million concrete-and-wood pier that was inspired by the original wooden one, the city is learning to balance its past and future. Residents are grappling with the reality that the very thing they love about their community is the same thing that attracts more than a million tourists a year, according to city officials.

Some see short-term rentals and the flow of transient guests staying in them as a threat to the established community and its longtime residents who don’t want new neighbors every week.

Should non-owner-occupied short-term rental licenses be capped at 800? It’s up to the city’s 1,886 registered voters to decide in what many call a defining moment for Folly Beach and how it manages come-and-go visitors.

The question of how to manage short-term rentals is not new. Property owners have had to apply for short-term rental licenses since 2018. There are currently over 1,100 active licenses.

A city committee was formed and provided recommendations to City Council on short-term rentals, but those recommendations were not followed up on. Some residents took their concerns to the City Council last summer. Feeling unheard, a group started a petition to create an ordinance that would establish a cap and distinguish owner-occupied and investor-owned short-term rentals. The ordinance failed in City Council and now is up for referendum vote, per state law.

Under the proposed ordinance, those with short-term rental licenses may continue to operate and keep their licenses until there’s a transfer to a new owner or family member.

No new short-term licenses would be granted until the number of active permits falls below 800 — a figure based on the number of pre-pandemic licenses in 2020. A waiting list would be established for future permits, but there are a lot of unanswered questions about further specifics or effects the limit would have.

A community divided

When Sam Meader and his wife moved to Folly Beach more than a decade ago, they started fixing up run-down cottages to rent. It was before the Airbnb era, so they’ve always had a hands-on approach in managing their rentals. They now own eight units near their home and manage several rental properties.

“Folly Beach has always been a beach vacation and retirement community, but this issue has polarized and pitted neighbor against neighbor,” Meader said. “Caps have come before the council multiple times, and each time they’ve said no. Last year, they passed wide-sweeping regulations and enforcement changes on short-term rentals. Why don’t we let that play out before we rush to cap it?”

On the other hand, resident Chris Bizzell believes Folly Beach has reached a “tipping point.”

“Right now, we’ve got a decent mix, but I think if we fail to act at this point it is going to become imbalanced,” Bizzell said. “It’s really a vote between what kind of community you want to live in. This is a first step. I can see this being amended down the road as the situation evolves, because it will change as the community evolves, too.”

Two advocate groups have been vocal about the vote. Folly United, led by Steve Goodwin, opposes the cap proposal. Save Folly’s Future, led by John McFarland, is pushing for the cap. Neither leader will vote on the matter, as they are nonresidents.

Both groups share concerns of preserving the future and personality of their beach community. They just disagree on how to do that.

Some have called it a cap, not just on short-term rentals, but on tourism.

McFarland, a West Ashley resident who has long-term rentals on Folly Beach, said he believes the sense of community in the barrier island city is at stake, and they should focus on attracting renters and residents who will live on the island as their primary residence.

“We are at a defining point,” McFarland said. “I think that citizens realize that if we don’t draw the line and say enough is enough, we will continue to lose that sense of community one lot at a time.”

McFarland said he and others worked hard to get the issue to a referendum vote so “every resident has an opportunity to voice their opinion.”

Goodwin, who is not related to the city’s mayor with the same last name, said he believes there are other ways to accomplish the same goal.

“A ‘no’ vote doesn’t mean we shouldn’t address the challenges the community is facing, but it means we can take our time and find better solutions,” he said.

Goodwin, a Daniel Island resident who also is a local property manager for iTrip Vacations, said the cap can hurt families in neighboring communities that have invested in a Folly Beach home as a vacation home or retirement investment paid for by short-term rental income.

“Short-term rentals provide an avenue for middle-class families to afford a property for their vacations, retirement and to pass on to family,” Goodwin said. “If you eliminate that option, you’re left with real estate that only the ultra-wealthy can afford.”

No vote for off-island property owners

Kate Rowland Peabody lives on Johns Island but has two short-term rental properties on Folly Beach.

“We own these properties and we visit often because we live so close,” she said. “We are part of this community, too. We care about this community, too. We have a stake in this as property owners, yet we don’t get the opportunity to vote?”

Michael Scarafile said that as a real estate agent for Carolina One Real Estate, property manager and short-term rental owner, the issue is not as clean-cut as it appears. He said he is cautious of an ordinance passing this way without more market research in place to inform the community of potential impacts.

“There are better ways to balance preserving Folly’s sense of community and protecting Folly property owners’ rights,” Scarafile said. “Each house is a story, a person. There are ways to regulate and enforce short-term rentals without capping them. Caps or bans address the symptoms of an issue, they do not solve the root cause.”

Scarafile and others have compared the situation to Sullivan’s Island, which banned short-term rentals more than two decades ago. While an all-out ban isn’t on the table for Folly Beach, he said restrictions of that nature not only divide communities but could bring unintended impacts on the housing market by changing the buyer pool.

What happens after the vote?

A “yes” vote signifies the voter supports enacting a cap on short-term rentals. A “no” vote means the voter does not agree with a cap.

Mayor Tim Goodwin said that if the referendum passes, the proposed ordinance becomes adopted as any other city ordinance would be if it had gone through City Council. If that happens, City Council does have the ability to challenge it or amend it at a later time.

“It’s binding in the fact that it creates an ordinance, but not binding in the fact that nobody could ever change it,” the mayor said.

Tim Goodwin said that managing visitor-related challenges is a delicate balancing act that cities across the state are each trying to figure out.

Legal challenges are possible no matter which way the vote goes. One lawsuit has already been filed.

A builder that operates five short-term rentals with two more being built sued the city over its pause of issuing short-term rental licenses. Michael Riffert with Folly East Indian Co. said in the suit that the moratorium does not comply with constitutional law, and that short-term rentals are a zoning issue which is exempt from the referendum process.

Folly Beach Baptist Church, located at 77 Center St. in Folly Beach, will be the only polling location. Polls will be open from 7 a.m. to 7 p.m.

FOLLY BEACH, S.C. (WCSC) - A date has been set for Folly Beach residents to vote on whether or not the city will limit investment short term rental licenses.

This comes after a citizen petition to cap short term rental licenses at 800 units, which represents about one third of the island.

After verifying the signatures, the city decided not to outright adopt the petition, but to put it to an island-wide vote.

Now residents are preparing to cast their ballots. The special election will be Feb. 7, 2023. The election is at-large and by majority. Permanent residents, or people whose primary address is on Folly Beach can vote. Voters must be registered by Jan. 8th to participate.

Ann Peets, a nearly decade long Folly resident, has been actively following the petition.

“Basically it’s every single-family homeowner with 4% tax status. Any condominium owner or any long-term renter whose primary residence is Folly Beach can vote,” Peets says.

The following precincts will be able to participate: Folly Beach 1, Folly Beach 2, James Island 1A, and James Island 1B. Polling will be from 7 a.m. to 7 p.m. at Baptist Fellowship Hall (61 West Indian Folly Beach) on the day of the election.

Peets signed the original petition for a cap and plans to vote in favor of the cap. She says it’s important that every resident is prepared to vote and knows how the petition will affect them and Folly as a whole.

“For any information or answers or frequently asked questions as you’re getting ready to vote, we encourage you to check the Folly Beach Residents Facebook page, where we post all the facts and frequently asked questions,” Peets says.

If you cannot vote in person on Feb. 7 in the special election, you can vote early or absentee. Early voting is from Jan. 23 – Feb. 3 of 2023. Early voting hours are 8:30 a.m. - 5 p.m., Monday through Friday at the Charleston County Board of Elections office (4367 Headquarters Rd. North Charleston, SC 29405). To learn how to absentee vote you can reach out to the Charleston County Board of Elections at 843-744-8683.

On behalf of those who signed the original petition, Peets says she is looking forward to the vote.

“We feel like we had a really good, high number of people turn out for the petition to really share their views. And we just hope that everybody remembers that to take it all the way through. They’ve got to go to this referendum and cast their ballot. But we are feeling very positive. We feel like there’s a lot of groundswell around making sure that Folly stays Folly and stays funky and family and livable, and basically that we can strike a balance with the investors on the island so that everybody can kind of keep things in a nice balance between us,” Peets says.

Copyright 2022 WCSC. All rights reserved.