Salt Lake County, Utah Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in Salt Lake County

Starting a short-term rental business in Salt Lake County requires navigating a complex set of regulations and ordinances. As the popularity of platforms like Airbnb and VRBO has grown, Salt Lake County has enacted new laws to balance the interests of hosts and residents.

To legally operate a short-term rental in Salt Lake County, hosts must obtain a business license. The application requires providing:

• The location of the rental property
• Number of rooms and maximum occupancy
• Name and contact info of the property manager
• Sales tax collection and accounting number
• Name and 24/7 contact info of a local responsible party

The county also conducts inspections of short-term rentals to ensure they meet safety standards, with periodic follow-up inspections. Hosts must affirm they are in compliance with all legal requirements and have paid applicable taxes and fees, including the transient room tax.

However, many short-term rentals operate illegally without licenses. A Salt Lake Tribune investigation found dozens of unlicensed Airbnb listings in areas like South Salt Lake, where the city refuses to issue licenses. One applicant was allegedly told South Salt Lake "didn't want his kind" because short-term rentals compete with hotels.

State law makes it difficult for cities to crack down on illegal listings, as they cannot use online ads alone as evidence. This leads many hosts to simply not apply for licenses. The Utah Apartment Association says onerous city requirements drive people to operate unlicensed rentals.

Salt Lake City receives complaints weekly about unlicensed rentals in residential areas where they are banned, but appears to have limited enforcement abilities. A city FAQ states rentals under 30 days are categorized as hotels/bed and breakfasts and are not permitted in residential zones.

Reddit users report issues with Airbnbs in their Salt Lake City neighborhoods, with absentee investor-owners and a revolving door of disruptive guests. However, enforcement relies on neighbor complaints, and some HOAs struggle to shut down illegal rentals.

So, in summary, while Salt Lake County requires licenses and inspections for short-term rentals, many still operate illegally under the radar. Cities have limited tools to proactively enforce the rules, so the underground market continues to thrive. Aspiring hosts should carefully review zoning laws and licensing requirements to ensure they can operate legally and avoid fines or shutdowns.

Short-Term Rental Licensing Requirement in Salt Lake County

To legally operate a short-term rental in Salt Lake County, property owners must obtain a business license and comply with local zoning regulations. The specific requirements vary by city, but generally include the following:

Business License Application: Submit a completed business license application to the city where the STR is located. This typically requires providing:

1. Property owner's name and contact information
2. Address and details of the STR property
3. Parking plan showing adequate off-street parking
4. Proof of ownership and primary residency (for owner-occupied STRs)
5. Floor plan identifying the STR area within the dwelling
6. Signed affidavit that no HOA/CC&Rs prohibit STRs
7. Local responsible party available 24/7 to respond to issues

Land Use Permit: Many cities, such as North Salt Lake, also require a separate land use permit before applying for a business license. The land use permit ensures the STR complies with zoning and land use codes.

Safety Inspection: Some cities require a safety inspection to verify the STR meets minimum fire, building, and health standards. This may check for working smoke detectors, fire extinguishers, egress windows, handrails, etc.

Tax Collection: STR operators must obtain a Utah State Tax Commission sales tax license and collect and remit all applicable taxes, including state and local sales taxes, transient room taxes, and resort community taxes.

Fees: Business license and permit fees vary by city. For example, North Salt Lake charges a $75 STR land use application fee. Business license fees are typically a few hundred dollars per year.

Processing Time: The licensing process may take several weeks to a couple months, depending on the city and the completeness of the application. Applicants should plan accordingly before listing or renting their property.

Failure to obtain required licenses and permits can result in citations, fines, and orders to cease operations. Fines vary but can be hundreds of dollars per day. In some cases, unlicensed STRs may be shut down by the city.

To apply for an STR license, contact the business licensing division for the city where your rental is located. For county-wide information, the Salt Lake County Health Department's website has useful resources.

Overall, it's critical for STR operators to carefully research the licensing rules in their specific area and maintain compliance to avoid penalties and ensure the legitimacy of their rental business.

Required Documents for Salt Lake County Short-Term Rentals

To legally operate a short-term rental in Salt Lake County, property owners must submit the following documents when applying for the required business license:

Business License Application: Submit a completed business license application to the city where the STR is located. The application collects key information about the property owner, STR address, local contact person, and compliance with regulations.

Proof of Ownership: Provide a copy of the property deed or title listing the applicant as the current owner. This verifies the applicant has the legal right to use the property as an STR.

Proof of Primary Residency: For owner-occupied STRs, submit evidence that the property is the applicant's primary residence, such as a driver's license, voter registration card, or signed affidavit. Many cities only allow STRs in primary residences, not investment properties.

Floor Plan: Provide a detailed floor plan clearly defining the area within the dwelling to be used for the STR, including bedrooms, bathrooms, and living spaces. This helps verify compliance with occupancy limits and building codes.

Site Plan: If required parking is located on-site, submit a site plan showing the parking location and configuration. Adequate off-street parking is commonly required to reduce impacts on neighbors.

Affidavit of Compliance: Sign an affidavit certifying the property has no restrictive covenants, HOA rules, or other private regulations prohibiting STR use. Cities put the burden on owners to verify compliance with private rules.

Sales Tax Collection Number: Obtain a sales tax collection and accounting number from the Utah State Tax Commission to collect and remit all applicable taxes, including state and local sales taxes, transient room taxes, and resort community taxes.

These documents are typically submitted to the business licensing division for the city where the STR is located. Application fees vary but are generally a few hundred dollars. Processing may take several weeks to a couple months.

Failure to obtain a license or comply with STR regulations can result in citations, fines, and orders to cease operations. With diligent research and thorough documentation, responsible owners can navigate the licensing process and legally operate STRs in Salt Lake County.

Salt Lake County Short-Term Rental Taxes

Short-term rental operators in Salt Lake County are required to collect and remit several types of taxes on the rental income they receive. The main taxes that apply include:

State Sales Tax: Utah imposes a statewide sales tax of 4.7% on short-term lodging rentals of less than 30 consecutive days. This is combined with a 0.25% county option sales tax, for a total state sales tax rate of 4.95%.

State Transient Room Tax: The state levies a 0.32% transient room tax on accommodations rented for less than 30 consecutive days.

County Transient Room Tax: Salt Lake County imposes a 4.25% transient room tax in addition to the state taxes. This tax applies to rentals of less than 30 consecutive days.

Municipal Transient Room Taxes: Certain cities and towns in Salt Lake County levy additional municipal transient room taxes on top of the county tax:

1. Salt Lake City, Sandy, West Valley City, Alta: 1% municipal TRT
2. Murray, South Salt Lake: 0.7% municipal TRT
3. Other SLCo cities like Bluffdale, Draper, Midvale, Millcreek, etc: 0.5% municipal TRT

So, in total, the combined transient room tax rate ranges from 12.32% to 13.82% of the rental income, depending on the exact city within Salt Lake County. This is in addition to the 4.95% state sales tax.

Short-term rental operators are responsible for collecting these taxes from guests as part of the booking cost and remitting the tax revenue to the proper state and local agencies, usually on a monthly basis. Failure to comply can result in fines, penalties, and legal issues.

Hosts may be able to deduct certain expenses related to their rental business to reduce their taxable income, such as cleaning fees, supplies, insurance, repairs, etc. As always, it's best to consult with a tax professional for guidance on allowable deductions and to ensure full compliance with all tax obligations. But in general, most ongoing costs directly associated with operating the short-term rental are likely to be deductible.

In summary, short-term rentals in Salt Lake County are subject to a 4.95% state sales tax plus transient room taxes ranging from 12.32-13.82% depending on the city, for a total tax rate of around 17-19% of the rental price. Hosts are responsible for collecting and remitting these taxes to the state and county. With diligent recordkeeping and professional advice, hosts can usually deduct many of their operating expenses to manage their overall tax liability.

Utah Wide Short-Term Rental Rules

While many short-term rental regulations are set at the local level by cities and counties, there are a few key state laws in Utah that affect hosts in Salt Lake County and across the state:

Defining Short-Term Rentals: Utah Code Section 10-8-85.4 defines a short-term rental as "a residential unit or any portion of a residential unit that the owner of record or the lessee of the residential unit offers for occupancy for fewer than 30 consecutive days."

Limits on Local Regulations: State law places some restrictions on how local governments can regulate short-term rentals. Specifically, cities and counties cannot use a short-term rental website listing as the sole evidence of a violation of a local ordinance, and cannot fine owners solely for listing a rental online. This makes enforcement more difficult for local officials.

Taxation: The State of Utah imposes taxes on short-term lodging rentals, including a statewide sales tax (4.7% state + 0.25% county) and a 0.32% transient room tax. These apply to rentals of less than 30 consecutive days. Depending on the city, additional county and municipal transient room taxes may also apply, typically in the 3-6.25% range. Hosts are responsible for collecting and remitting these taxes.

Licensing: While the state does not directly license short-term rentals, it does require hosts to obtain a sales tax collection and accounting number from the Utah State Tax Commission in order to collect and pay the required taxes.

PropertyRights: Utah has laws affirming the property rights of homeowners to use their property as a rental. For example, Utah Code Section 57-1-24 states that an owner has the right to "lease the property for a term within or extending beyond the owner's lifetime." However, this does not override local zoning laws or private restrictions like HOA rules.

So, in summary, while Utah does not heavily regulate short-term rentals at the state level, there are a few key laws around taxation, licensing, and property rights that set the framework for local control. Ultimately, cities and counties have the primary authority to set rules for where rentals can operate and what permits are required, but enforcement mechanisms are limited by state statute.

As a Salt Lake County host, it's important to understand both the state-level requirements like tax collection and the county-specific ordinances around licensing, zoning, occupancy limits, and more. Careful compliance with this multi-layered regulatory framework is essential to running a successful and legal short-term rental business.

Does Salt Lake County Strictly Enforce STR Rules? Is Salt Lake County Airbnb Friendly?

Salt Lake County and its cities do actively enforce short-term rental regulations, making the area less Airbnb-friendly compared to some other destinations. Cities rely heavily on neighbor complaints to identify illegal rentals, as state law prohibits them from using online listings alone as evidence for enforcement.

Salt Lake City, in particular, has strict zoning rules that ban short-term rentals in most residential areas east of State Street and in parts of the west side. The city requires STRs to have a business license, but many operate illegally without one. In 2021, the city was investigating two dozen STR enforcement cases, half of which were unlicensed.

On Reddit, residents express frustration with the proliferation of STRs in Salt Lake City neighborhoods. One user complained about living next to a "year-round party home with new strangers showing up weekly." Another mentioned an STR in their building operating illegally despite multiple complaints to the HOA. The general sentiment is that STRs remove potential long-term housing from the market and disrupt communities.

However, this doesn't mean there is no underground STR activity. Discussions on bigger pockets and Reddit indicate some hosts do operate rentals in Salt Lake County and Salt Lake City specifically, skirting the rules. But it's clearly not a very welcoming environment, with active (albeit imperfect) enforcement and community opposition.

So, in summary, while there are undoubtedly illegal Airbnb listings in Salt Lake County, cities are working to identify and shut them down as complaints arise. Hosts operating under the radar do so at the risk of fines and cease-and-desist orders if caught. Overall, the county and its municipalities are much less Airbnb-friendly compared to other Utah destinations like Summit County, where a whopping 21.5% of housing units are STRs. Salt Lake County's stricter stance reflects an effort to prioritize housing for residents over tourist accommodations in its urban neighborhoods.

How to Start a Short-Term Rental Business in Salt Lake County

Starting a short-term rental business in Salt Lake County requires careful planning and compliance with local regulations. Here are the key steps to get started:

Check zoning laws: Before investing in a property, verify that short-term rentals are allowed in that location. Salt Lake City prohibits STRs in most residential zones, while other cities like West Valley are more permissive. Contact the city's planning department to confirm the rules for your specific address.

Prepare the property: Once you have a suitable property, outfit it with quality furniture, linens, kitchenware, and amenities that will appeal to your target guests. Consider hiring a professional photographer to showcase your rental in the best light. Install smart locks, noise monitoring devices, and security cameras to protect your investment.

Register your business: Apply for a Utah State Tax Commission sales tax license and register your business entity with the Utah Department of Commerce. You'll need this information for the city business license application.

Obtain licenses and permits: Apply for a general business license from your city's business licensing division. If your city allows STRs, you'll also need a specific short-term rental permit or license. This usually requires an inspection to verify safety and parking requirements are met.

Get insurance: Call your insurance provider to add short-term rental coverage to your homeowners policy or purchase a commercial liability policy. Proper insurance is critical to protect yourself from guest injuries, property damage, and lost income.

Create a listing: Once your property is ready and licensed, create an attractive listing on popular sites like Airbnb and VRBO. Use compelling descriptions and professional photos. Be clear about your rental terms, house rules, and cancellation policies. Set competitive rates based on comparable rentals in your area.

Automate your business: Utilize vacation rental software to manage bookings, send guest communications, and coordinate turnovers. Consider hiring a reputable property management company if you don't live near the rental or don't have time for the day-to-day operations.

Pay taxes: Set up a system to collect and remit state and local sales taxes, transient room taxes, and resort community taxes as required. Work with an accountant familiar with STRs to ensure proper compliance and to maximize your deductions at tax time.

Some tips for success:

1. Provide exceptional customer service to earn 5-star reviews and repeat bookings. Be responsive, accommodating, and professional in all guest interactions.
2. Optimize your pricing using dynamic tools that automatically adjust rates based on local demand, events, and seasonality. Don't race to the bottom but don't overprice your rental either.
3. Maintain the property in top condition with regular deep cleanings, prompt repairs, and occasional decor updates. Budget for these ongoing expenses.
4. Promote your listing on social media and offer special deals to build your client base. Encourage satisfied guests to recommend your rental to their friends and family.
5. Keep detailed records of all income and expenses to maximize your tax deductions and profitability. Consult with a CPA or tax attorney as needed.

With diligent research, compliance with regulations, and a commitment to providing an excellent guest experience, you can build a successful short-term rental business in Salt Lake County. While the rules are stricter in certain cities, the strong tourism market provides ample opportunity for well-managed rentals.

Who to Contact in Salt Lake County about Short-Term Rental Regulations and Zoning?

For inquiries about short-term rental regulations and zoning in Salt Lake County, the following contacts and resources may be helpful:

Salt Lake City Planning Division: For questions about zoning, land use, and city ordinances related to short-term rentals in Salt Lake City. Contact them at 801-535-7700 or zoning@slcgov.com.

Salt Lake City Building Services: For questions about building permits, inspections, code enforcement, and potential zoning violations for short-term rentals. Contact them at 801-535-6000 or building.services@slcgov.com.

Salt Lake County Health Department: Oversees regulation and inspection of public lodging facilities in the county, which may include some short-term rentals. Call 385-468-3835 or visit their website at slco.org/health/food-protection/.

Utah State Tax Commission: Handles sales tax collection and licensing for short-term lodging operators. Call 801-297-2200 or visit tax.utah.gov for information.

In addition to government agencies, short-term rental hosts in Salt Lake County may find useful information and support through online communities:

1. Bigger Pockets Salt Lake City Forum: Features discussions among local real estate investors, including topics related to short-term rental regulations and strategies. Visit biggerpockets.com/forums/532-salt-lake-city.
2. Airbnb Community Center: Offers a space for Airbnb hosts to connect and share experiences, including a dedicated Salt Lake City topic. Check out community.withairbnb.com for general hosting tips and area-specific threads.
3. Salt Lake City Subreddit: While not solely focused on short-term rentals, the local Reddit community at reddit.com/r/SaltLakeCity sometimes features discussions and news related to the topic. Use the search function to find relevant posts.

By engaging with these official and unofficial resources, short-term rental operators can stay informed about the evolving regulatory landscape in Salt Lake County and connect with fellow hosts facing similar challenges. Building a strong knowledge base and support network is key to running a successful and compliant short-term rental business.

What Do Airbnb Hosts in Salt Lake County on Reddit and Bigger Pockets Think about Local Regulations?

Discussions on Reddit and Bigger Pockets reveal that many Salt Lake County Airbnb hosts are frustrated by the strict short-term rental regulations, especially in Salt Lake City proper. Here are some key insights from these online communities:

Fines for Illegal Rentals: In a 2018 Reddit thread, a user shared that their friend was recently fined for operating an illegal Airbnb in Salt Lake City. Commenters noted that while a state law passed in 2017 to limit cities' ability to ban STRs, SLC still prohibits them in most residential areas.

Frustrations with Regulations: A 2022 Reddit post by a host who received a code violation notice for their STR generated discussion about the strict rules. One commenter stated "Insanely frustrating that AirBnB allows these listings. A massive amount of them are straight up illegal but the company doesn't care."

Impacts on Neighbors: In a 2024 Reddit thread, residents shared issues with living near STRs, including a "year-round party home with new strangers showing up weekly" and an illegal rental in an HOA that the association struggled to shut down. Commenters largely felt STRs have a negative impact on housing and communities.

Confusion over Rules: On a Bigger Pockets forum, an aspiring host expressed confusion about SLC's STR ban, noting they had stayed in Airbnbs there before. The poster sought clarity on the restrictions and how other hosts were operating.

Seeking Legal Approaches: Another Bigger Pockets thread from a host looking to buy a property with a rentable basement unit highlights efforts to find legal avenues for STRs. However, the host expressed concern about investing in a property only to have the city block their plans.

Overall, these online discussions paint a picture of STR operators struggling to navigate and comply with Salt Lake County's restrictive regulations, particularly in Salt Lake City. While some hosts continue to fly under the radar, others have faced fines and pushback from neighbors and HOAs. The general consensus is that the county and its cities are not very welcoming to Airbnb and VRBO rentals in residential areas.

Disclaimer: While we here at BNBCalc strive to keep all of our city regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each city and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.