On Tybee, Your Closing Date May Decide Whether the Rental Permit Survives the Sale
October 8, 2026
October 8, 2026
Tybee Island has two sets of short-term rental rules right now. The current rules govern every sale that closes between today and the end of December. A rewrite adopted on Aug. 27, 2026 takes over on Jan. 1, 2027. For a house in the island's R-1, R-1-B or R-2 residential districts that already earns rental income, the two sets of rules treat the same sale very differently.
Under the current rules, the rental permit ends at closing. Under the new code, the buyer gets a one-time chance to apply for a new certificate without waiting for room under the new caps. If you are buying or selling one of these homes, the date on the closing statement can matter as much as the number above it.
Ordinance 08-2024, adopted on second reading June 13, 2024, ends an existing short-term rental permit in R-1, R-1-B and R-2 when the property, or a covered ownership interest, changes hands. The permit cannot be assigned, transferred or renewed. A new owner also cannot file a replacement application for that location. The city's 2025 FAQ says Tybee will not issue new certificates in those three districts at all. Other zoning districts still have an application process.
The Savannah Morning News described the 2024 change as a deliberate way to shrink the number of residential rentals through ordinary turnover. Each sale removed one. That rule still applies to any closing between now and Dec. 31. A buyer who closes this fall on a residential-district house with a long rental history is buying a house with no rental permit. The listing history and the guest reviews don't carry over.
The new code repeals Sections 4-051 and 4-052 of the Land Development Code and replaces them with one consolidated section. Certificates still don't transfer when a property sells. The new owner must file a new application and pay a new fee. Approval normally depends on space under the cap for that sector.
The transition clause is what makes the timing matter. Section 4-051.8(D) gives a buyer a path that a fall 2026 buyer does not appear to have. It works like this:
Eighteen months from Jan. 1, 2027 runs to mid-2028. Today is 88 days from the start of the window. The ordinance text starts the clock on the effective date. Nothing published so far says a transfer recorded in November or December 2026 counts. The city also hasn't issued guidance on sales that close before the new code takes effect. Until it does, the cautious assumption is that a 2026 closing falls under Ordinance 08-2024 and a 2027 closing falls under the new code.
The rewrite divides the residential districts into four sectors. Each sector has a cap on rental units authorized to operate in a calendar year.
| Sector | General boundaries in the ordinance | Annual cap |
|---|---|---|
| 1 | North of US Highway 80, between the Lazaretto Creek Bridge and the end of First Street | 175 |
| 2 | South of US Highway 80 from the Lazaretto Creek Bridge to the start of Lovell Avenue, running down to the 14th and 16th Street lines | 250 |
| 3 | East of Lovell Avenue, between 1st Street and 13th Lane, to the ocean | 220 |
| 4 | South of 13th Lane, bounded by Butler Avenue, 14th Street, 5th Avenue and Alley 3, toward the ocean | 180 |
Together the caps allow 825 units. The Savannah Morning News reported 657 short-term rentals in residential areas and 741 in other zones, 1,398 in total, based on an October presentation to the city. Savannah Agenda reported that the sector plan could allow about 168 more residential rentals than 2025 levels. Two earlier drafts are now superseded: a February draft with an overall cap of 775, and an August version using percentages.
More total room doesn't mean every sector will have open slots on Jan. 2. Once a sector reaches its cap, applications go on a first-come waiting list. The STR administrator has been directed to publish the procedures. The transition clause lets a qualifying 2027 buyer bypass that list, so its value depends on how full the buyer's sector is.
For a seller, rental income is often part of how the home was priced, whether through comparable sales or a buyer's own math on carrying costs. Under the current rules, a buyer closing this fall can't count on that income in R-1, R-1-B or R-2. A buyer closing in January has a defined path to keep the house operating as a rental, as long as the paperwork is filed within fifteen days.
The physical house is identical in both cases. Supporters of the rewrite made a related argument during public comment. Savannah Agenda reported that they said the changes would help homeowners keep or sell properties that depend on rental income. For listings going under contract this fall, the closing date has become a negotiating term with real value. A seller may get more from a January closing than from a quick December one. A buyer may reasonably ask for a later date, or for a price that reflects a closing before Jan. 1.
Ownership structure also matters, separately from timing. The new code lets an immediate-family joint tenant, family trust or family corporation apply for a new certificate after a holder dies without going on the waiting list. A transfer into a joint tenancy, trust or family corporation with the same members is handled the same way. Families planning around an inherited Tybee rental should check those provisions with their own attorney before the new year. This post is not legal advice.
Fees and enforcement rise alongside the new access. On Sept. 10, 2026, the council approved Ordinance 2026-05, an annual fee based on maximum occupancy: $400 for one to five guests, $800 for six to ten, and $1,200 for more than ten. The 2025 formula used a $200 base plus a per-person charge. The city's five-bedroom example came to $440. Reports so far don't say when the new fee schedule starts. Assume it may not share the Jan. 1 date.
The council also unanimously adopted a companion civil-penalties ordinance. At first reading, that ordinance included fines as high as $1,000 for habitability violations and a new $500 fine for giving the city false information. Reports on the final vote don't restate the amounts. The rewrite also requires a designated emergency contact, with a fine if issues aren't addressed. Certificates last one year. In R-1, R-1-B and R-2, failing to apply within 30 days of expiration creates a presumption that the rental use was abandoned. After that, the home can return only if the sector cap allows. Under the new code, a missed renewal can cost a home its rental status, so calendar management matters much more.
The rewrite passed 3-2. Councilmembers Nick Hale, Cam Jackson and Michael "Spec" Hosti voted in favor, Kathryn Williams and Nick Sears voted against, and Tony Ploughe recused himself. A Chatham County judge had already dismissed the Tybee Alliance lawsuit challenging the city's authority to regulate residential vacation rentals. WTOC reported that the ruling cleared the way for the city's zoning plans. Our research found no report of an appeal. The city has said it plans to hold several public workshops over the coming months to explain the changes. Our research in early October did not find any announced dates.
Before setting a closing date on a residential-district rental home, get written answers from the City of Tybee Island's Community Development Department on these points:
Patricia Sinel, the city's Community Development Director, is listed as the staff contact on the rewrite at 912-472-5031.
If you own or are considering a Tybee rental home in R-1, R-1-B or R-2, closing timing deserves a conversation before an offer is signed. Liza DiMarco can help you set a timeline that fits the new rules, line up the city paperwork for the 15-day filing deadline, and present the property so its rental status is clear to well-qualified buyers. Let's Connect.
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