Renting in South Carolina presents unique challenges, especially when it comes to rent increases. While the state doesn’t have broad rent control laws, tenants still have some protections regarding how much and how often their rent can rise.
Here’s an overview of the state’s rent increase laws, including proposals for future protections for tenants.
Rent Control in South Carolina: Current Status
South Carolina does not have state-mandated rent control laws in effect. This means that landlords generally have the freedom to set and increase rents at their discretion.
Unlike other states or cities with specific rent control policies, South Carolina does not currently place limitations on how much rent can be increased, leaving landlords with broad authority to adjust rental rates.
However, there are ongoing efforts to introduce rent control policies, with the Rent Control Act, also known as Bill 3264, being a major legislative proposal.
The Rent Control Act: What’s Being Proposed?
The Rent Control Act (Bill 3264), introduced in 2021, could bring significant changes to rent control in South Carolina if passed. While the bill has not yet been enacted, here are the key provisions it proposes:
Limit Rent Increases: Rent hikes would be capped at 7% plus the Consumer Price Index (CPI) annually. For example, if the CPI is 3%, the rent increase could be up to 10%.
90 Days’ Notice: Landlords would be required to give 90 days’ notice before raising the rent for tenants who have been living in the rental unit for over a year.
Tenants’ Legal Recourse: Tenants could sue for triple the rent plus damages if a landlord exceeds the rent increase limit.
Exemptions: New buildings less than 15 years old and units receiving rental assistance would be exempt from these rent control limits.
While the Rent Control Act could provide important tenant protections, it faces opposition from those who argue that it could discourage the development of new rental housing. As of now, the bill has been referred to a committee, and its future remains uncertain.
Current Rent Increase Limits in South Carolina
Even without rent control laws, South Carolina has some rules in place to protect tenants from sudden rent hikes:
First Year of Rental Agreement: Landlords cannot raise rents during the first year of a rental agreement.
After the First Year: After the first 12 months, landlords can only raise rents once a year and must provide 90 days’ written notice before doing so.
Maximum Rent Increase: Rent increases are limited to 7% plus the CPI (the rate of inflation) for the previous 12 months. For example, if the CPI is 3%, a landlord can increase the rent by up to 10%. Any increase beyond this is considered illegal.
If a landlord imposes an illegal rent increase, tenants have the right to sue for three times the amount of the illegal increase, plus any legal fees.
Required Notice Periods for Rent Increases
South Carolina law specifies how much notice a landlord must give before increasing rent, depending on the type of lease agreement:
Week-to-Week Agreements: For short-term agreements that auto-renew each week, landlords must provide at least 7 days’ written notice before raising rent.
Yearly Lease Agreements: For leases lasting a year or longer, landlords must provide at least 90 days’ written notice before increasing rent.
This ensures tenants have enough time to adjust their budget, decide whether to renew their lease at a higher rate, or look for alternative housing.
Frequency of Rent Increases in South Carolina
Under South Carolina law, landlords are restricted to one rent increase per year. The year is calculated from the previous increase or from the start of the tenancy if no previous increase has occurred. This restriction protects tenants from being hit with frequent rent hikes and ensures stability for the duration of the lease.
Penalties for Violating Rent Increase Laws
If a landlord violates the rent increase limits, they could face serious consequences. Tenants have the right to sue for damages, with the law allowing tenants to recover up to three times the rent that was unlawfully charged.
For example, if a tenant pays $1,000 in rent and the landlord illegally raises it by 15%, the tenant could sue for up to $3,000 in damages, in addition to any legal fees.
This legal recourse provides tenants with a strong incentive to ensure that their landlords are following the rent increase rules.
Exemptions to Rent Control
There are some exemptions to the rent increase laws in South Carolina:
New Construction Exemption: Rental units that were built within the last 15 years are exempt from rent control laws. Landlords can set rents based on market conditions without adhering to the 7% plus CPI limit.
Rental Assistance Exemption: If a unit is part of a federal or state rental assistance program, such as Section 8, the landlord is not subject to rent control restrictions. Once a tenant who is part of a rental assistance program moves out, the landlord is free to adjust the rent to market rates.
Important Landlord-Tenant Laws in South Carolina
In addition to rent increase regulations, tenants and landlords should be aware of other important laws in South Carolina:
Security Deposits: Landlords can charge a security deposit of up to 1 month’s rent for unfurnished units and 1.5 months’ rent for furnished units. The deposit must be returned within 30 days of the tenant moving out, along with an itemized list of deductions if any.
Anti-Discrimination Laws: It is illegal for landlords to refuse to rent or treat tenants unfairly based on race, religion, sex, disability, or other protected characteristics. Tenants can file complaints with the South Carolina Human Affairs Commission if they experience discrimination.
Evictions: Landlords must provide written notice before starting the eviction process, typically within 3 to 30 days, depending on the reason for eviction.
While South Carolina doesn’t currently have statewide rent control laws, there are protections in place to regulate rent increases. The Rent Control Act (Bill 3264) could introduce stricter limits in the future, but for now, landlords must follow rules regarding the maximum allowable rent increase and provide proper notice before increasing rent.
Tenants have legal protections against excessive rent hikes and can seek compensation if the law is violated. Understanding these regulations is key for both renters and landlords to ensure fair practices and avoid potential disputes.
