Overview: Are Short-Term Rentals Allowed in Provo?

Yes, short-term rentals are allowed in Provo, but with significant restrictions. STRs are only permitted in specific commercial and mixed-use zones, not in residential areas. Specifically, short-term rentals are allowed in the following zones: DT1, DT2, SC3, GW, WG, FC1, FC2, and PIC. Short-term rentals are prohibited in all residential zones.

Starting a Short-Term Rental Business in Provo

To operate a short-term rental in Provo, you must:

1. Verify zoning compliance - Confirm your property is located in one of the permitted zones (DT1, DT2, SC3, GW, WG, FC1, FC2, or PIC)
2. Obtain proper licensing - Apply for a commercial business license with short-term rental classification
3. Complete the application process - Submit required documentation and pay applicable fees
4. Ensure ongoing compliance - Meet all operational requirements and regulations

Required Documents, Permits, Licenses, and Guidelines

Required License

• Commercial Business License with "short-term rental" classification
• Application fee: $125
• Must be renewed periodically (contact city for renewal schedule)

Application Process

• Apply online through the City's business license portal
• Complete application must include all required property information
• Properties must be registered and linked to the license

Key Requirements

• Each short-term rental property must be registered with Provo City and linked to your business license
• Multiple properties can operate under one license if ownership is identical
• License is non-transferable between persons or structures
• Must provide written notice within 30 days of any ownership transfer

Specific Short-Term Rental Regulations

Zoning Restrictions

• Prohibited in all residential zones - STRs cannot operate in any agricultural or residential zoned areas
• Permitted zones only: DT1, DT2, SC3, GW, WG, FC1, FC2, and PIC
• Renting a dwelling more than once in any 30-day period creates presumption of STR operation

Occupancy and Building Limitations

• Multifamily building restriction: Maximum 10% of dwelling units in any multifamily building may be used as short-term rentals
• Once 10% threshold is reached, no additional units in that building may obtain STR licenses

Operational Requirements

• Must comply with Provo City Code 6.33 (Short-Term Rental Dwellings)
• All applicable building and safety codes must be met
• Standard business licensing requirements apply

Enforcement and Transfers

• License automatically cancels upon ownership transfer
• New owners must obtain new license
• 30-day written notice required for any ownership changes
• City may review rental agreements to verify compliance

Tax Obligations

• Must collect and remit applicable state and local taxes if platform doesn't handle automatically
• Utah state sales tax (4.85% base rate plus local option taxes)
• Local transient room taxes may apply
• Maintain detailed records of all rental activity

Contact Information for Local Authority

Provo City 311 Customer Service

• Phone: 311 (within Provo city limits) or (801) 852-6000 (outside city limits)
• Physical Address: 445 W Center Street, Provo, UT 84601
• Hours: Monday - Friday, 8:00 AM - 6:00 PM
• Email: Contact through city website portal
• Website: www.provo.gov

Specific Departments:

• Business Licensing: (801) 852-6000
• Zoning Department: (801) 852-6427 (for zoning verification questions)
• Code Compliance: (801) 852-6000

Important Source Links

• Primary STR License Page: www.provo.gov/954/Short-Term-Rental-License
• Online License Application Portal: www.provo.gov/CityViewBusinessLicense
• STR Zoning FAQ: www.provo.gov/Faq.aspx?QID=98
• City Code 6.33 (STR Regulations): provo.municipal.codes/Code/6.33.020
• General Business License Information: www.provo.gov/196/Commercial-Business-License

Additional Considerations

State-Level Context

Utah does not have a comprehensive statewide STR regulatory framework, leaving regulation primarily to local municipalities. However, state law does limit local governments' ability to completely prohibit STR listings on platforms, while allowing regulation of actual operations.

Best Practices for Compliance

• Verify zoning eligibility before investing in any property for STR use
• Maintain current business license and ensure all properties are properly registered
• Keep detailed records of all rental transactions for tax purposes
• Stay informed about potential changes to local regulations through city council meetings
• Consider consulting with local professionals familiar with Provo's STR requirements

Planning Considerations

Given Provo's restrictive zoning approach to STRs, investors should carefully evaluate the limited inventory of properties in permitted zones and understand that residential properties cannot be converted to short-term rental use regardless of their proximity to attractions or the university.

The regulations reflect Provo's approach to balance tourism accommodation needs while preserving residential neighborhood character, making location selection the most critical factor for potential STR operators in this market.