Salt Lake City Short Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short Term Rental Business in Salt Lake City

Salt Lake City does not currently permit short-term rentals in residential districts, and there are no known plans or proposals to allow for them at this time15. Short-term rentals are only allowed in commercial and mixed-use districts for nightly sleeping accommodations, such as hotels, motels, hostels, and bed and breakfasts, if allowed by the zoning district and licensed for such use1.

To start a short-term rental business in Salt Lake City, it is important to be aware of the current regulations. As of now, short-term rentals are not permitted in residential districts, but they are allowed in commercial and mixed-use districts for nightly sleeping accommodations1. Use the City's Zoning Look-up Tool to determine the zoning district for your property and if a hotel, motel, or bed and breakfast use is allowed9.

If your property is located in a commercial or mixed-use district that allows for nightly sleeping accommodations, you will need to obtain the necessary licenses and permits. This includes a business license from the City and ensuring that your property meets all fire safety code standards and other applicable state and local codes13.

It is also important to note that even if short-term rentals were permitted in residential districts in the future, there would likely be additional requirements and regulations to follow. This could include obtaining a specific short-term rental permit, adhering to occupancy limits, providing sufficient parking, and complying with noise and other nuisance ordinances1.

Short Term Rental Licensing Requirement in Salt Lake City

Since short-term rentals are not permitted in residential districts, there are no specific licensing requirements for this type of rental in Salt Lake City1. However, if the property is located in a commercial or mixed-use district, it must be licensed for nightly sleeping accommodations1.

To obtain a business license for a hotel, motel, or bed and breakfast use, you will need to submit an application to the City's Business Licensing Division. The application will be reviewed for zoning and building compliance, fire safety code, and any other applicable state or local requirements13.

If your business involves food preparation, you will also need to comply with the Salt Lake Valley Health Department regulations13. Depending on the specifics of your short-term rental operation, you may need additional permits or licenses from the State of Utah as well.

Once your application is approved and all necessary inspections are completed, you will be issued a business license to legally operate your short-term rental in the permitted commercial or mixed-use district13. Business licenses must be renewed annually and kept in good standing to continue operating.

Required Documents for Salt Lake City Short Term Rentals

As short-term rentals are not currently permitted in residential districts, there are no specific documents required for this type of rental1. If the property is in a commercial or mixed-use district, it must be licensed for nightly sleeping accommodations5.

To apply for a business license for a hotel, motel, or bed and breakfast use, you will typically need to provide the following13:

• Completed business license application form
• Detailed description and/or drawing of the property identifying the use of each room
• Proof of ownership or lease agreement for the property
• Floor plan showing room layouts, exits, fire extinguishers, etc.
• Parking plan demonstrating sufficient off-street parking
• Any other documents required by the Business Licensing Division

Additional documentation may be necessary depending on the specific nature of your short-term rental operation. For example, if you plan to serve food, you may need to submit health permits or food handler certifications.

Once you have gathered all required documents, submit your complete application package to the Business Licensing Division for review. An inspection of the property will likely be conducted to ensure compliance with zoning, building, and fire codes before your license is issued13.

Salt Lake City Short Term Rental Taxes

There is no specific information available regarding short-term rental taxes in Salt Lake City. However, if short-term rentals were permitted in the future, it is likely that there would be tax implications, and hosts should consult with the relevant authorities for guidance1.

Utah imposes lodging tax on short-term rental charges, including fees such as pet fees, damage fees, reservation fees, and cleaning fees. Cancellation fees and parking fees are not taxable8.

The lodging taxes that could potentially apply to short-term rentals in Salt Lake City include14:

• Utah Combined Sales Tax: 5.95-8.35% of the listing price including cleaning and guest fees for stays under 30 nights. This includes the 4.7% state sales tax and 0.25% county option sales tax, plus any applicable additional sales taxes.
• Utah State Transient Room Tax: 0.32% of the listing price including cleaning and guest fees for stays under 30 nights.
• Local Transient Room Taxes: Varies by city and county, but typically 3-6.25% of the listing price. Could include County Transient Room Tax, Municipal Transient Room Tax, and Tourism Transient Room Tax.

As a short-term rental operator, you would be responsible for collecting these lodging taxes from your guests and remitting them to the proper tax authorities8. This requires registering with the Utah State Tax Commission and obtaining a sales tax license.

Airbnb also collects and remits certain lodging taxes on behalf of hosts in Utah14. However, hosts are still responsible for assessing their overall tax obligations and ensuring compliance. It's best to consult with a tax professional for guidance.

Salt Lake City wide Short Term Rental Rules

The Utah Code Section 17-50-338 defines "short-term rental" as a residential unit or any portion of a residential unit that the owner of record or the lessee offers for short-term rental4.

Salt Lake City does not currently permit short-term rentals in residential districts, and there are no known plans or proposals to allow for them at this time15. The only permitted short-term stays are for nightly sleeping accommodations in certain commercial and mixed-use districts, such as hotels, motels, hostels, and bed and breakfasts, when allowed by the zoning district and licensed for such use1.

If short-term rentals were to be permitted in residential districts in the future, the City would likely establish specific rules and regulations for their operation. This could include19:

• Requiring a specific short-term rental permit or license
• Limiting the number of days per year a property can be rented short-term
• Requiring the property to be owner-occupied
• Restricting the number of guests allowed based on the size of the property
• Providing sufficient off-street parking for guests
• Complying with noise, occupancy, and other nuisance ordinances
• Adhering to building and fire safety codes
• Collecting and remitting all applicable lodging taxes

These hypothetical rules would be designed to strike a balance between allowing short-term rentals to operate while still preserving the character of residential neighborhoods and protecting quality of life for long-term residents. The specifics would be determined through the City's legislative process with input from various stakeholders.

However, as it currently stands, short-term rentals are simply not permitted in Salt Lake City's residential districts. Homeowners in these areas cannot legally rent out their properties on a short-term basis, even if the rental is conducted through a platform like Airbnb or VRBO1.

Does Salt Lake City strictly enforce STR rules? Is Salt Lake City Airbnb friendly?

Salt Lake City strictly enforces the rules prohibiting short-term rentals in residential districts5. The City has taken steps to bolster its enforcement efforts, including allocating funds for data-gathering software to identify potential illegal short-term rental properties3.

According to the City's zoning ordinance, any rental of a residential property for less than 30 days is considered a short-term rental and is not permitted in districts zoned for residential use9. The only legal short-term rentals are licensed hotels, motels, bed and breakfasts, and similar nightly lodging uses in commercial and mixed-use districts1.

If a property owner is found to be operating a short-term rental illegally, they can face fines and be required to cease operations3. Proving an illegal short-term rental can be challenging, as the City cannot use a property's listing on sites like Airbnb or VRBO as the sole evidence for enforcement3. Complaints from neighbors are often the catalyst for an enforcement action3.

As a result of these strict rules and active enforcement, Salt Lake City may not be considered very Airbnb-friendly compared to some other cities. The City has made a clear policy choice to prioritize preserving long-term housing for residents over allowing short-term rentals in its neighborhoods1.

However, this doesn't mean there is no short-term rental activity happening under the radar. According to discussions on Reddit, some hosts do operate short-term rentals in Salt Lake City despite the rules, but it is not widespread12. The general sentiment expressed by residents is that the City has a housing shortage, and illegal short-term rentals remove potential homes from the market, exacerbating the problem12.

So in summary, while there are undoubtedly some Airbnb listings in Salt Lake City's residential areas, the City is actively working to identify and shut them down. Hosts operating illegally do so at the risk of facing penalties if caught. Overall, Salt Lake City's regulatory environment is much more restrictive toward short-term rentals compared to many other destinations.

How to Start a Short Term Rental Business in Salt Lake City

Based on the current regulations prohibiting short-term rentals in residential districts, the only way to legally operate a short-term rental business in Salt Lake City is to have a property in a commercial or mixed-use district that allows for nightly lodging uses1. Here are the key steps:

How to Start a Short Term Rental Business in Salt Lake City

• Familiarize yourself with the current regulations and restrictions on short-term rentals in Salt Lake City1.
• If the property is located in a commercial or mixed-use district, ensure that it is allowed for nightly sleeping accommodations and obtain the necessary licenses for such use1.
• Comply with all applicable state and local tax requirements8.
• Ensure the property meets all safety and health standards.
• Create a detailed listing with accurate information and high-quality photos.
• Establish house rules and communicate them clearly to guests.
• Maintain the property and provide excellent customer service to guests.

Who to contact in Salt Lake City about Short Term Rental Regulations and Zoning?

For inquiries about short-term rental regulations and zoning in Salt Lake City, it is recommended to contact:

• SLC Planning Division: 801-535-7700
• Building Services: 801-535-60006

What do Airbnb hosts in Salt Lake City on Reddit and Bigger Pockets think about local regulations?

There are limited specific discussions from Airbnb hosts in Salt Lake City on Reddit and Bigger Pockets regarding local regulations. However, one Reddit thread mentions that short-term rentals remove single-family homes from the market for purchase or long-term rent, contributing to the housing shortage17.

Another Reddit user expressed concern about the potential for short-term rentals to attract problems, from loud parties and disruptive behavior to serious crimes, and how this can change the fabric of the neighborhoods4.

In summary, Salt Lake City currently does not allow short-term rentals in residential districts, and the city strictly enforces these rules. Hosts should be aware of the regulations and potential consequences of non-compliance. While some hosts may operate short-term rentals despite the rules, it is not widespread, and the general sentiment is that short-term rentals can contribute to the housing shortage and negatively impact neighborhoods.