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Orem, UT

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STR Regulations for Orem, Utah

Short-Term Rental (STR) Investor Guide for Orem, Utah

1. Overview: Are Short-Term Rentals Allowed in Orem, UT?

Explicit Answer: No. Short-term rentals are currently prohibited in all residential zones in Orem, UT.

Key Background: Orem has maintained a ban on "transient lodging" (rentals less than 30 days) in residential areas since 2002. This ban classifies STRs as commercial lodging (equivalent to hotels/motels), incompatible with residential neighborhoods. However, the city is actively debating regulatory changes (as of March 2025), including potential licensing programs with occupancy limits and operational standards.

Critical Enforcement Note: Utah courts have consistently upheld cities' rights to enforce zoning bans against STRs, even after periods of non-enforcement. Operating an STR now risks immediate legal action, fines, and forced shutdowns.

What do Airbnb hosts actually earn in Orem?

Orem hosts earn a median $28,783/year with $134 ADR and 71% occupancy.

Top performers pull in $44,072+ per year.

See the full Orem market breakdown

2. How to Start a Short-Term Rental Business in Orem

Current Reality: Starting an STR is not legally viable until Orem adopts new regulations. If you proceed now, you operate in direct violation of city code. Future Regulatory Path (Under Debate):

  1. Monitor City Council Meetings: Track proposed ordinances via Orem City Council Agendas (citizenportal.ai linked meeting videos).
  2. Prepare for Licensing: Expect a mandatory city STR permit with annual renewal.
  3. Adopt Compliance Systems: Implement safety measures (smoke/CO detectors), parking plans, and noise monitoring.
  4. Designate Local Contact: Assign an Orem-based agent within 1-hour response time.

3. Required Documents, Permits, Licenses, and Guidelines

Currently Required (for Legal Operation): None – STRs are banned. Anticipated Requirements (Based on Draft Proposals):

  • Business License/STR Permit: Application, fee, and annual renewal.
  • Zoning Compliance: Proof property is in an approved STR zone (likely limited residential areas).
  • Safety Inspection:
    • Smoke detectors in all bedrooms/hallways.
    • Carbon monoxide detectors per level.
    • Fire extinguisher.
  • Operational Plans:
    • Occupancy limits (proposed: 2 guests/bedroom, max 8).
    • Parking details (e.g., 1 space/bedroom).
    • Quiet hours (likely 10 PM).
  • Advertising Compliance: Display license number in all online listings.
  • Tax Registration: Remit Utah County’s 3% transient room tax.

4. Specific Regulations: City, County, and State

City of Orem (Current)

  • Zoning Ban (2002): Prohibits all transient lodging (<30 days) in residential zones.
  • Enforcement: Complaint-driven. Violations trigger fines and injunctions.
  • Active Proposals (2025):
    • Tiered occupancy caps (2 guests/bedroom, max 8).
    • Complaint-driven revocation of licenses.
    • Fines for unlicensed ads/listings.

Utah County

  • Transient Room Tax: 3% on all STR bookings (handled via state systems).
  • Unincorporated Areas: Follow county ordinances (similar to Orem’s residential bans).

State of Utah

  • Definition: STR = rental ≤30 consecutive days.
  • HB256 (2024): Allows cities to use online listings combined with other evidence for enforcement.
  • No Statewide Ban: Municipalities retain full authority to regulate/ban STRs.
  • Building/Fire Code: STRs >10 occupants require commercial R-1 occupancy compliance (sprinklers, alarms, exits).

5. Local Authority Contact Information

City of Orem

  • Planning & Zoning Department:
    • Phone: (801) 229-7500
    • Email: Not provided – use city contact form.
    • Website: Orem.gov/Planning
  • City Attorney’s Office: (801) 229-7100
  • Report Violations: Non-emergency police line (801) 229-7070.

Utah County

  • Transient Room Tax: Contact the Utah State Tax Commission:

6. Source Links

Key Recommendations for Investors

  1. Avoid Immediate Investment: Operating now risks legal action.
  2. Advocate for Balanced Regulations: Attend city council meetings to support responsible host provisions (e.g., primary-residence exemptions).
  3. Prepare for Compliance: Invest in safety equipment and operations manuals now to streamline future licensing.
  4. Monitor Shifts: Watch for updates in Q2 2025 as Orem finalizes its ordinance.

Disclaimer: Laws evolve rapidly. Consult Orem’s planning department before investing.

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Orem

Market Saturation Score

036912
Low Saturation
1/ 12
months with declining YoY revenue
0–1 declining months: minimal saturation pressure — revenue trends are stable.
View Full Orem Market Analysis

Photos of Orem

Overview of Orem

Orem is a thriving city in Utah County, situated in the north-central part of Utah along the western base of the Wasatch Mountains and the eastern shore of Utah Lake. Home to roughly 95,000 residents, it carries the well-known nickname "Family City USA" and serves as a key piece of the Provo–Orem metropolitan area, a region that also includes nearby Provo to the south and Lehi to the north. The city has a clean, suburban feel, with tree-lined neighborhoods, a strong sense of community, and an economy that blends higher education, light manufacturing, and a steady stream of visitors drawn to the surrounding outdoor landscapes. It is approximately 45 miles south of Salt Lake City, making it a convenient stop along the busy I-15 corridor and a natural gateway to both the high Uinta-Wasatch-Cache National Forest and the lake country of central Utah.

Just minutes from the heart of Orem, Utah Lake dominates the western edge of the city and offers more than 150 square miles of freshwater for boating, kayaking, sailing, paddleboarding, and shoreline fishing. Visitors can launch at the city marina, stroll the paved Provo River Parkway that hugs the shoreline, or simply watch pelicans and herons at the wetlands. The proximity of such a large body of water to a developed urban area is one of Orem's defining features and a major draw for summer travelers.

To the east, the rugged slopes of Mount Timpanogos rise dramatically above the valley, with the popular Timpanogos Trail drawing hikers who want to summit the 11,750-foot peak. The mountain also shelters Timpanogos Cave National Monument, a system of three connected caverns reached by a steep, scenic hike from the American Fork Canyon side. Guided tours run from spring through fall and are a favorite half-day outing for families staying in the Orem area.

A short drive north in Lehi, Thanksgiving Point spans 55 acres of gardens, museums, and family attractions, including the Ashton Gardens, the Museum of Ancient Life with its large dinosaur exhibits, and the Museum of Natural Curiosity. It functions almost like a small theme park of science and nature, and its variety makes it a reliable rainy-day option or a full-day destination for travelers with children.

Orem works well as a short-term-rental base because it pairs small-city convenience with quick access to two very different playgrounds: the calm waters of Utah Lake and the alpine terrain of the Wasatch. Guests get walkable dining and shopping, proximity to universities and events in Provo, and a comfortable launching point for day trips to Salt Lake City, Park City, or the red rock country further south. The mix of family-friendly amenities, outdoor recreation, and central Wasatch Front location gives the city a year-round appeal that is hard to match elsewhere in the region.

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