Property Management Laws And Regulations In South Carolina

South Carolina regulates third-party property management through several authorities at once, and the rules that matter most to a management company are the ones covering your license, your client trust accounts, and the money you hold on behalf of owners and tenants. This guide covers those rules for professional managers, with the statute or agency regulation behind each one.

Everything below is sourced to South Carolina's own statutes, agency rules, and court materials rather than to secondhand summaries. Specific dollar amounts and deadlines do change; the citations do not, so you can always open the authority and confirm the current text before you act on it.

Licensing Requirements For Property Managers

South Carolina law makes it unlawful to act as a real estate broker, associate, or property manager, or to advertise as such, without an active license, and the statute creates a distinct "property manager" and "property manager-in-charge" licensing tier for firms that manage rental property for owners. Exemptions are narrow, covering bona fide owners transacting their own property, attorneys, government employees, and court-appointed fiduciaries.

• It is unlawful for an individual to act as a real estate broker, real estate associate, or real estate property manager, or to advertise or provide services as such, without an active, valid license issued by the commission. (S.C. Code § 40-57-20)
• The chapter defines "property manager" as a supervised licensee who negotiates the rental or leasing of property for compensation, and "property manager-in-charge" as the licensee responsible for supervised licensees' compliance and for control of the office's trust accounts. (S.C. Code § 40-57-30)
• Exemptions from licensure include a bona fide owner transacting property matching their own ownership interest, attorneys acting within their legal representation, government employees performing official duties, and court-appointed receivers or trustees acting within their appointment. (S.C. Code § 40-57-240)
• An unlicensed employee may not discuss, negotiate, or explain a property management agreement, lease, or other real estate document, and may not be paid on a commission or real-estate-activity basis. (S.C. Code § 40-57-135(K))

Client Trust Account Rules

South Carolina brokers-in-charge and property managers-in-charge must maintain a dedicated, clearly titled trust account, deposit received client funds within 48 hours, avoid commingling client and company funds, reconcile the account monthly, and retain records for five years, producible to the Real Estate Commission on request.

• A broker-in-charge or property manager-in-charge who takes possession of trust funds must establish and maintain an active real estate trust account, a demand deposit account titled to include the word "trust" or "escrow" in the name of the brokerage firm. (S.C. Code § 40-57-136)
• Cash or certified funds received in trust must be deposited within 48 hours of receipt, excluding Saturdays, Sundays, and bank holidays. (S.C. Code § 40-57-136(C)(1))
• A broker-in-charge or property manager-in-charge may not commingle client trust funds with the company's own money, except for a clearly identified amount to cover bank service charges or to avoid closing the account when no client funds are on deposit. (S.C. Code § 40-57-136(B)(3))
• Each separate trust account must be reconciled to the bank statement on a monthly basis, except in months when no deposit or disbursement is made. (S.C. Code § 40-57-136(F)(2)(f))
• Trust account records must be retained for a minimum of five years, and the broker-in-charge or property manager-in-charge must furnish copies to a representative of the Real Estate Commission upon request. (S.C. Code § 40-57-136(F)(1))

Trust account rules are where South Carolina management companies get into trouble fastest, because a shortage is a licensing problem and not just a bookkeeping problem. The habits that keep you clean are the boring ones: deposit on time, never let operating money and client money mix, reconcile every account every month, and keep a per, property record you could hand to an auditor without preparing it first. Our guide to preparing for a trust account audit walks through what examiners actually ask for.

Security Deposit Rules

South Carolina sets no statutory maximum deposit amount and does not require interest on deposits, but requires the deposit, less itemized deductions, to be returned within 30 days of lease termination and delivery of possession, with treble damages available for wrongful withholding.

• Upon termination of tenancy, deposit funds must be returned, less amounts withheld for accrued rent and damages, with an itemized written notice of deductions, within 30 days after termination of the tenancy and delivery of possession, or demand by the tenant, whichever is later. (S.C. Code § 27-40-410)
• The Residential Landlord and Tenant Act does not set a maximum deposit amount and does not require landlords to pay interest on deposits held. (S.C. Code § 27-40-410)
• If a landlord fails to comply with the return and itemization requirements, the tenant may recover three times the amount wrongfully withheld, plus reasonable attorney's fees. (S.C. Code § 27-40-410)

Lease Agreements And Required Disclosures

South Carolina requires landlords to disclose, in writing, the owner or authorized agent for service of process at or before the start of tenancy, and landlords with five or more adjoining units using different deposit-calculation standards must post or provide those standards in writing.

• The landlord must disclose in writing, at or before commencement of the tenancy, the name and address of the owner of the premises or a person authorized to act on the owner's behalf for service of process and receiving notices and demands. (S.C. Code § 27-40-420)
• A landlord renting five or more adjoining units who imposes different deposit-calculation standards among tenants must, before the tenancy begins, post a statement explaining those standards in a conspicuous place, or give the tenant a written statement. (S.C. Code § 27-40-410)

Entry Notice And Tenant Privacy

South Carolina landlords must give at least 24 hours' notice before entering, except in emergencies or for pre-disclosed regularly scheduled services performed between 9 a.m. and 6 p.m.

• A landlord must give the tenant at least 24 hours' notice of intent to enter and may enter only at reasonable times; a tenant may not unreasonably deny consent to enter for inspecting the property, making repairs, supplying services, or exhibiting the unit. (S.C. Code § 27-40-530)
• A landlord may enter without notice at any time in case of emergency. (S.C. Code § 27-40-530)
• A landlord may enter between 9 a.m. and 6 p.m. to provide regularly scheduled periodic services, such as filter changes or pest treatment, if that right is conspicuously stated in writing in the rental agreement and the landlord announces the intent to enter beforehand. (S.C. Code § 27-40-530)

Rent, Late Fees, And Other Charges

South Carolina has no statewide rent control statute and no statutory cap on late fees; the Residential Landlord and Tenant Act defines rent to include late charges but leaves the amount and terms to the lease.

• The Residential Landlord and Tenant Act defines "rent" to include late charges, but does not set a maximum late-fee amount or specific terms, leaving them to the rental agreement. (S.C. Code § 27-40-210)

Fee income is also taxable income, and how you record management fees, late fees, and pass, through charges affects both your compliance position and your books. See our guide to South Carolina property management tax deductions for the reporting side.

Fair Housing Obligations

Fair housing in South Carolina is enforced by the South Carolina Human Affairs Commission under the state Fair Housing Law, whose protected classes largely mirror the federal Fair Housing Act's categories of race, color, religion, sex, national origin, handicap, and familial status.

• South Carolina's Fair Housing Law makes it unlawful to refuse to sell or rent, after a bona fide offer, because of race, color, religion, sex, familial status, or national origin. (S.C. Code § 31-21-40)
• The law also prohibits discrimination in the sale or rental of a dwelling because of a handicap of the buyer or renter, or of a person residing or intending to reside there. (S.C. Code § 31-21-40)
• The Fair Housing Law's protections extend to residential real-estate-related transactions such as lending, brokering, and appraisals. (S.C. Code § 31-21-60)
• The South Carolina Human Affairs Commission has jurisdiction to investigate fair-housing complaints statewide. (S.C. Code Title 31, Chapter 21)

Habitability And Safety Duties

South Carolina requires landlords to keep rental units in a fit and habitable condition and prohibits retaliation against tenants who exercise rights under the Residential Landlord and Tenant Act, with treble-damage remedies available.

• Landlords must comply with applicable building and housing codes, make necessary repairs, keep common areas safe, and maintain electrical, gas, plumbing, sanitary, heating, ventilating, and air-conditioning systems, plus running water and heat. (S.C. Code § 27-40-440)
• A landlord may not retaliate, through rent increases beyond fair-market value, decreased services, or eviction, against a tenant who complains about a code violation or a violation of the Act; a landlord found liable owes the greater of three months' rent or treble actual damages, plus attorney's fees. (S.C. Code § 27-40-910)

Eviction Basics

South Carolina evictions proceed in Magistrate Court after written notice, 5 days to pay for nonpayment of rent, or 14 days to cure other lease violations, followed by an ejectment action if the tenant does not cure or vacate; self-help evictions are illegal.

• For nonpayment of rent, the landlord may terminate the rental agreement if the tenant fails to pay within 5 days of written notice. (S.C. Code § 27-40-710(A))
• For other lease violations, such as unauthorized occupants or pets, the tenant has 14 days after written notice to cure the breach or vacate. (S.C. Code § 27-40-710(A))
• If the tenant does not cure the breach or vacate, the landlord proceeds by filing an ejectment action in Magistrate Court. (S.C. Code § 27-40-710)

Staying Compliant Without Guessing

Most South Carolina compliance failures are not decisions, they are drift: a deposit that sat too long, a reconciliation that got skipped in a busy month, a lease template that never got updated after a statute changed. Build the calendar first. Monthly trust reconciliations, an annual review of your lease and disclosure packet against current statutes, and a documented process for deposits and refunds cover the large majority of what an examiner will ask about.

This guide is a starting point for professional managers, not legal advice. For a specific dispute, a novel fact pattern, or anything with real money at stake, work with a South Carolina attorney, and confirm the current text of any statute cited above with the South Carolina Real Estate Commission (within the Department of Labor, Licensing and Regulation) or the South Carolina legislature.

Sources

Every fact above is drawn from one of the official sources below.

• S.C. Code § 40-57-20, South Carolina Legislature, SC Code of Laws
• S.C. Code § 27-40-410, South Carolina Legislature, SC Code of Laws
• S.C. Code § 31-21-40, South Carolina Legislature, SC Code of Laws
• S.C. Code Title 31, Chapter 21, South Carolina Human Affairs Commission