Real estate mogul makes 6-figure bet on upending S.C. short-term rental market
HB 3876 would reorder the market, which would benefit Rick Elliott while limiting options for tens of thousands of single-property short-term renters
MYRTLE BEACH – One Grand Strand businessman who likely would benefit from legislation that could dramatically reshape South Carolina’s short‑term rental market has spent more than $200,000 in recent years to make it a reality.
Pitched as a tax-compliance and accountability measure, South Carolina House Bill 3876 would shift power toward large property management firms and away from small operators and mom‑and‑pop managers, according to analysts and industry advocates, by changing who is legally responsible for collecting and remitting state and local accommodations taxes on short‑term rentals booked through platforms such as Airbnb and Vrbo.
The bill was approved May 5 by the Senate Finance Committee on a 12-8 vote. That sends it to the full Senate two days before the regular session ends.
Rick Elliott owns one of those large property management companies. He owns Elliott Beach Rentals in Myrtle Beach, and he has been a vocal supporter of House Bill 3876. Elliott and his company also have donated more than $33,000 in campaign funds to several other key South Carolina lawmakers in recent years, and Elliott also has paid a well-connected lobbyist at least $180,000 in the last four years.
Over the years, campaign finance reports show bill sponsor Rep. Lee Hewitt (R-Murrells Inlet) has received donations from Elliott ($4,000), the Myrtle Beach Lodging PAC which is part of the Grand Strand Business Alliance ($4,000) and from innkeeper Brian Henry ($1,500).
Hewitt is a coastal realtor and property manager who has made tourism, coastal development and real‑estate issues central to his political profile. He owns and is the broker-in-charge of Garden City Realty and also stands to increase his personal real estate business should his bill become law.
Elliott, who lives in Hewitt’s district, has paid lobbyist Boone Peeler at least $180,000 since 2023 to work in Columbia on its behalf. Peeler is the son of Finance Chairman Harvey S. Peeler Jr.
Some co-sponsors of the bill also have received campaign donations from Elliott as well as similar individuals, businesses and PACs.
In addition, campaign finance records show Harvey Peeler has received $2,000 in donations form Myrtle Beach Lodging PAC. State Senate President Thomas Alexander (R-Walhalla) has received $2,250 from the Myrtle Beach Lodging PAC and $1,000 from the South Carolina Restaurant & Lodging Association.
Senate Judiciary Chairman Luke Rankin (R-Conway) has received $4,300 from Elliott and Elliott Realty, $4,000 from Myrtle Beach Lodging PAC and $1,500 from the South Carolina Restaurant & Lodging Association.
House Speaker G. Murrell Smith (R-Sumter) has received $4,250 from Myrtle Beach Lodging PAC, $1,000 from Elliott and $1,000 from the South Carolina Restaurant & Lodging Association.
House Ways and Means Chairman Bruce Bannister (R-Greenville) has received $5,500 from Myrtle Beach Lodging PAC and $500 from the South Carolina Restaurant & Lodging Association.
Critics say the fine print of HB 3876 would have far‑reaching consequences for how thousands of South Carolinians are allowed to rent their homes and investment properties.
Industry groups estimate that tens of thousands of short‑term rental properties in South Carolina rely on third‑party managers, meaning as many as 15,000 to 25,000 property owners could see their ability to use platforms like Airbnb significantly curtailed if HB 3876 becomes law, based on typical platform usage patterns and an opposition letter warning that ‘half’ of Airbnb’s state and local tax remittances in the state could be put at risk.
Currently, major booking platforms usually act as the “merchant of record,” collecting the full payment from guests, handling applicable taxes and remitting those revenues to the state and local governments.
HB 3876 would preserve that arrangement only for owners who manage their own listings. For properties handled by third‑party managers, however, the bill would bar platforms from serving in that role and instead shift full responsibility for tax collection, remittance, and record‑keeping onto the property managers themselves, according to bill language and legislative summaries.
The bill also would give a privileged status to “professional property management companies” that have a licensed real‑estate broker‑in‑charge.
That definition, opponents argue, is likely to exclude many smaller management firms that currently handle a handful of homes for individual owners. Those smaller firms would face the choice of taking on complex merchant‑of‑record obligations — including detailed record‑keeping, direct tax remittance, and heightened audit exposure — or losing access to the dominant booking platforms altogether.
Industry groups and some policy analysts warn that the changes could force many small firms out of the market and push property owners to either self‑manage or abandon short‑term rentals entirely. They say that could reduce the number of listings available on platforms, especially in popular vacation destinations such as Charleston, Hilton Head and Myrtle Beach, and ultimately shrink the overall short‑term rental sector.
Supporters of the bill, including lawmakers concerned about tax leakage and inconsistent reporting, frame HB 3876 as a necessary step to ensure the state collects what it is owed from a rapidly growing industry.
Short‑term rentals have generated significant economic activity and hundreds of millions of dollars in tax revenue in recent years, and state officials have raised questions about whether existing rules adequately capture the full amount due.
Opponents counter that by making it harder for smaller operators to comply – and easier only for large, broker‑backed companies – the bill could have the opposite effect, driving down the number of taxable stays. They also cast the measure as a property‑rights issue, arguing that the state is effectively limiting how owners can use platforms and managers to monetize their property.
If enacted, HB 3876 would likely set off a period of adjustment as owners, managers and platforms reconsider their business models in South Carolina. Some owners may move to full self‑management to keep using Airbnb and similar services under familiar rules. Others might turn to large professional firms that can absorb the compliance burden. Still others could exit the short‑term rental market, reducing competition and potentially pushing up prices for travelers.