Did you know that a rent control law has been introduced in the South Carolina state legislature?
There’s a long road for that bill to travel before it becomes law, but we want to make sure landlords in Myrtle Beach and throughout our area understand its language and its implications. It’s not dissimilar to the sorts of rent control we see in states like California and New York. There’s a cap on how much landlords can increase the rent, there’s a notice period that must be followed (even for weekly rentals), and there’s a set of rental homes that would be exempt from the law.
So, let’s summarize what the South Carolina Rent Control Act would mean for our rental market. Here’s a look at H.3346.
Our Overview:
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South Carolina Rent Control Act (H.3346)
There is not currently any rent control in South Carolina. Landlords are free to raise the rent as much as they’d like during renewal periods. This bill that’s been introduced in the South Carolina House would restrict residential rental increases across the entire state.
The rent cap would be 7% plus the current rate of inflation as established by the Consumer Price Index (CPI). That’s the limit that a landlord could raise the rent on an existing tenant in a 12-month period.
There are other provisions that are set forth in this law, specifically around notice periods. If the law gets passed and signed, landlords will have to provide at least seven days of notice to tenants who are in place under a week-to-week lease. For all other tenancies, 90 days of notice will have to be given before the rent is raised.
The penalty for a landlord who violates the rent control law? Three months’ rent plus actual damages.
Exemptions to the Proposed South Carolina Rent Control Act
There are two exemptions to the rent control law.
Properties that have been built in the last 15 years would be exempt. That exemption would remain in effect for 15 years beginning on the date the first Certificate of Occupancy was issued. Once the 15-year period ends, the property becomes subject to the regular rent control regulations.
Tenants who receive reduced rent through government programs would also not be protected by rent control limits. That government support could be through federal, state, or local programs such as Section 8 vouchers, low-income tax credits, or other subsidies. The owner would be exempt from rent control limitations.
Unlike other states, in which single-family homes are often exempt from rent control measures, the proposed bill does not protect landlords renting out a single-family home. All property types are included in this proposed law.
Impact of Rent Control on Myrtle Beach Landlords
The South Carolina Rent Control Act was introduced in the 2025/2026 legislative session. There is no indication that it will pass. But the fact that the state of South Carolina is even talking about rent control tells us that the topic will likely not go away anytime soon.
Here is what’s contributing to the push for some sort of rent control in the state:
- Rising rents. For many years, rents have continued to go up, and the shift has not been subtle. In Myrtle Beach and other coastal markets especially, rents have far outpaced wages, and this has created frustration and affordability issues for many local residents.
- Growing population. Myrtle Beach and other cities in South Carolina have seen a huge influx of people moving in from other states. These new residents often come from states where the cost of living is higher. They’re willing to pay more as demand for housing intensifies.
- Affordable housing shortage. While a lot of new construction has arrived in the local market, these are not homes that everyone can afford. Competition is fierce for affordable rentals.
- Higher eviction rates. According to the Economic Hardship Reporting Project, evictions have been increasing in South Carolina steadily over the last five years. This has triggered calls for stronger tenant protections.
With inflation being an issue over the last few years, everything is more expensive, and people are frustrated. Rent control laws rarely solve the problems they seek to address. But without any other viable alternatives, this is where we’ve landed.
Rent control could mean reduced revenue for owners. It may be difficult to remain profitable if you have a hard stop at where you can set the rent when you’re renewing a lease agreement with your tenants.
Moving Forward: What Myrtle Beach Landlords Can Expect
We do not expect this bill to become law. However, it is not the first time that rent control has been discussed in the statehouse, and it likely won’t be the last time.
It’s important that you’re prepared for strategic pricing. Here’s what we mean by that:
- Watch local demand trends. The Build-to-Rent market has been seriously expanding over the last year or two. It’s more important than ever to ensure your pricing is aligned with what the market demands. Who are you really competing with? Can you offer an affordable rental home to a large pool of tenants? If so, you’re going to enjoy high occupancy and little turnover.
- Stay up to date on legislation. Even if this particular bill doesn’t pass, it’s possible we’ll see additional tenant protections floated in the legislature.
- Provide an amazing tenant experience. It’s important that you’re offering value to tenants as they continue to adjust to higher rents. Give them a reason to be happy that they’re living where they’re living. Provide services such as online rental payments, landscaping, or even free internet for a few months to provide incentives for leasing and lease renewals.
We want to help you stay informed and proactive when it comes to rental legislation and market trends. Rent control could become very real, and we’re here to advocate for your best interests. Please contact us at J & P Unlimited. We manage investment properties in Myrtle Beach as well as Conway, Surfside Beach, Murrells Inlet, Socastee, and the surrounding areas.
