Are Short-Term Rentals Allowed in Salt Lake City?

No, short-term rentals (STRs) are NOT currently allowed in Salt Lake City under the existing regulations. According to the City's official Planning Division FAQ, Salt Lake City "does not currently have regulations or allowances for land use known as 'short-term rental.'" The City categorizes short-term rentals (such as Airbnb or Vrbo properties rented for less than 30 days) as hotel, motel, or bed and breakfast uses, which are generally prohibited in residential zoning districts.

Current enforcement is strict, with the City using data-gathering software and conducting rigorous checks to ensure compliance with short-term rental bans outside of commercially zoned areas.

How to Start a Short-Term Rental Business in This Market

Given the current prohibition, starting a legal short-term rental business in Salt Lake City requires:

1. Zoning Compliance

• Use the City's Zoning Look-up Tool to determine if your property is located in a zoning district that permits hotel, motel, or bed and breakfast uses
• Most residential zoning districts do not permit these uses
• Properties must be in commercially zoned areas to operate legally

2. Administrative Interpretation

• Request an Administrative Interpretation from the Planning Division to determine in writing whether your specific property can be used for short-term rental purposes
• This provides official documentation of permitted use

3. Business Licensing

• Obtain required business licenses through Salt Lake City Business Licensing
• Contact: 801-535-7721

4. Development Review Team (DRT) Meeting

• Schedule a DRT meeting by completing the online application and emailing to DRT@slc.gov
• Contact Katilynn at 801-535-6179 for meeting questions and timeframes

Required Documents, Permits, Licenses, and Guidelines

Since STRs are effectively prohibited in residential areas, the following would apply only to properties in commercially zoned districts:

Business License Requirements

• Business license application through Salt Lake City
• FEIN number or tax account number
• Proof of compliance with zoning regulations
• Building permits for any modifications

Zoning Documentation

• Administrative Interpretation letter confirming permitted use
• Zoning Verification Letter if needed
• Compliance with building and housing standards
• Fire safety certifications

Tax Requirements

• Utah state sales tax registration
• Local sales tax compliance
• Transient room tax collection and remittance
• Lodging tax obligations

Specific Regulations for Short-Term Rentals

Salt Lake City Regulations

• Prohibition: STRs are not permitted in residential zoning districts
• Commercial Zones Only: Hotel, motel, and bed & breakfast uses are only allowed in specific commercial zones
• Enforcement: Active enforcement using data-gathering software and compliance checks
• Penalties: Violations can result in fines and legal action

Salt Lake County Regulations

Limited information was available in the provided sources regarding specific county-level STR regulations.

Utah State Law

• Definition: Utah Code Section 17-50-338 defines short-term rentals as residential units rented for less than 30 days
• Local Authority: State law allows local governments to regulate STRs within their jurisdictions
• Compliance: All operations must comply with both state and local regulations

Contact Information for Local Authorities

Salt Lake City Planning Division

• Phone: 801-535-7700
• Email: zoning@slc.gov
• Website: https://www.slc.gov/planning/
• Address: 451 South State Street, Salt Lake City, UT 84111

Business Licensing

• Phone: 801-535-7721
• Website: https://www.slc.gov/finance/business-licensing

Building Services

• Phone: 801-535-7938 (permits)
• Phone: 801-535-7224 (building inspections)
• Email: buildinginspections@slc.gov

Development Review Team

• Email: DRT@slc.gov
• Contact: Katilynn at 801-535-6179

Important Considerations for STR Investors

Current Market Reality

• Salt Lake City has taken a restrictive approach to short-term rentals
• The focus is on preserving residential neighborhoods and housing availability
• Enforcement is active and violations carry penalties

Alternative Strategies

1. Look to Neighboring Jurisdictions: Consider properties in nearby cities with more permissive STR regulations
2. Commercial Properties: Focus on commercially zoned properties within Salt Lake City
3. Long-term Rentals: Consider traditional rental strategies given the STR restrictions
4. Monitor Policy Changes: Stay informed about potential future changes to STR regulations

Future Outlook

The City's approach may evolve, but current enforcement suggests continued restriction of STRs in residential areas. Investors should monitor City Council actions and Planning Commission decisions for any regulatory changes.

Source Links

• Salt Lake City Planning Division FAQ
• Salt Lake City Zoning Look-up Tool
• Salt Lake City Code
• Utah State Code Section 17-50-338
• South Salt Lake STR Handbook (Note: This is for South Salt Lake, a separate municipality with different regulations)

Disclaimer: This guide is based on current regulations as of 2024. STR regulations can change frequently, and investors should always verify current requirements with local authorities before making investment decisions. Consider consulting with a local attorney specializing in land use law for specific legal advice.