You're visiting Savannah and have rented a home for a few days to fully experience the city. As you enjoy your stay, you find yourself contemplating the idea of living here. Why not purchase a property to rent out part of the time? Perhaps you could consider buying a duplex, living in one half, and renting out the other. Keep in mind that if you decide on a short-term vacation rental, Savannah has strict regulations in place that were enacted in 2017.
So, what is considered a short-term vacation rental (STVR)? This is a private property that is rented for 30 days or less and encompasses the entire unit, including a kitchen. A room that is rented as part of a private residence is considered a Bed & Breakfast Homestay if the dwelling has 1-5 bedrooms, or a dwelling with 6- 15 bedrooms is considered an Inn. (B&B Homestays and Inns fall under separate rules.)
First, there is an STVR overlay district. Only dwellings that fall in this district may be rented short-term. Meaning: a dwelling that falls within the City of Savannah but outside the overlay district may not be rented short-term. Only permitted dwellings may be rented short-term, and permits are never given to homes outside the overlay district.
Within the overlay district, there are sub-districts called wards. In each ward, only 20% of the properties are eligible for a STVR Permit. If a property had a permit before 2017, it is grandfathered in. This permit can be passed to a new owner if the new owner registers the property and renews the permit within 6 months of closing. If it is not renewed, the permit is lost.
How can one obtain a permit for a property that currently does not have one? Unfortunately, there is a long waiting list for permits, which have been fully allocated in most wards for many years. To be added to this list, you need to complete the Waiting List Form. Permits become available when they are not renewed, either due to an oversight or when a home transitions into a permanent full-time residence. You can find the link to the form below. Please note that the website indicates they are still processing forms received before September 28, 2017, so the waiting list is quite extensive.
Exceptions for owner-occupants. Owner-occupants may apply for a permit if they can prove the home is their full-time residence. This is done by stating so in an affidavit and showing some type of proof, such as a homestead exemption or voter registration, car registration, etc., with that address. The home could then be rented 50% of the time. This is attractive to those who only live in Savannah part of the year, such as snowbirds. Those who winter in Savannah and then return to another home, often in the north, for the summer. I have seen where couples have one partner list Savannah as their primary residence and the other partner list the other home as primary. Always check with your tax professional to see where the biggest advantages of the Homestead Exemption lie.
Exceptions for the Street Car District. In parcels that are zoned TN-2. “The TN-2 District is intended to ensure the vibrancy of historic residential neighborhoods with traditional development patterns characteristic of Savannah from 1890 to 1930 during the streetcar and early automobile era. While the district provides primarily for residential streets, it also includes limited nonresidential uses that were historically deemed compatible with the residential character of neighborhoods, specifically located as corner stores and limited ground-floor uses.” Quoted from residential code Sec. 8-3214. The Street Car district allows STVR when one of the units is owner-occupied. This would mean a duplex, multi-family, or carriage house (auxiliary dwelling unit).
If all of this seems too daunting and complicated, I am happy to help. Having a real estate professional who knows the rules could save you from a costly mistake. Call me at 912-200-8338 or send a message to Michelle@LiveInSavannah.com.
Link to Waiting List: STVR Waiting List Savannah