Short-Term Rental Investment Guide: Sandy, Utah

Overview

Short-term rentals ARE ALLOWED in Sandy, Utah with specific restrictions and requirements. Sandy City explicitly permits STRs within owner-occupied residential dwellings under controlled circumstances, balancing property owner rights with neighborhood preservation concerns.

How to Start a Short-Term Rental Business in Sandy, UT

Starting an STR business in Sandy City requires a two-step process: obtaining a Special Use Permit through the Planning Department and a Business License through the Business Licensing Office. The process involves multiple approvals and inspections.

Step-by-Step Process:

1. Preliminary Assessment: Verify your property is within allowed zoning and check if your community area has available STR permits (waiting lists apply when limits are reached)

2. Complete Applications: Submit both the General Development Application and STR Business License Application

3. Document Preparation: Gather all required proofs and affidavits (see Required Documents section)

4. Plan Review: Submit detailed parking and dwelling usage plans

5. Approvals: Obtain approvals from Fire, Building & Safety, and Health Departments

6. Final License: Once all departments approve, pay fees and receive your STR Business License

Processing typically takes 30 days after all outstanding documents and payments are received.

Required Documents, Permits, Licenses, and Guidelines

Required Permits and Licenses:

1. Special Use Permit (Planning Department)
2. STR Business License (Business Licensing Office)
3. State of Utah Sales Tax License (transient room tax included)

Required Documents Checklist:

• Completed Sandy City General Development application
• STR Business License application
• State of Utah sales tax license
• Business entity registration (if using DBA)
• Proof of Ownership: Copy of transfer deed, quit claim deed, or warranty deed listing applicant as property owner
• Proof of Full-Time Residency:
  • Federal and state tax returns showing property address
  • Government-issued ID showing property address
  • Notarized affidavit stating address is primary residence (minimum 183 nights/year)
• Detailed Parking Description: Draw or write parking plan (on-street parking not permitted)
• Detailed Dwelling Description: Defines areas designated for STR use
• Covenant Compliance: Notarized affidavit certifying no private covenants restrict STRs
• Entity Registration: If using DBA, acknowledgment from Utah Department of Commerce

Required Inspections:

• Sandy Fire Department (150 E. 9000 S., Sandy, UT 84070) - Phone: (801) 568-2938
• Building & Safety Department (10000 Centennial Parkway, Sandy, UT 84070) - Phone: (801) 568-7251
• Salt Lake County Health Department (788 E WOODOAK LN, Murray, UT 84107-6379) - Phone: (385) 468-3845

Specific Regulations for Short-Term Rentals

City-Level Regulations (Sandy City):

Geographic Limitations:

• STR permits limited per geographic community based on detached single-family home count
• Waiting lists maintained when community limits reached
• Limits may change annually without notice

Residency Requirements:

• Owner Occupancy Mandatory: Property owner must reside in dwelling minimum 183 nights per year
• Only One STR Per Dwelling: Each dwelling unit receives only one STR Special Use Permit
• Ownership Requirements: Only individuals or majority trustors (50%+ ownership) may apply; corporations/LLCs not eligible

Operational Limitations:

• Annual Rental Caps:
  • Standard STR: Maximum 182 nights per year
  • Permitted accessory apartment: Maximum 365 nights per year
• Consecutive Stay Limit: Maximum 29 consecutive nights to same renter
• Vacancy Requirement: Minimum one night vacancy between different renters
• License Expiration: STR business licenses expire July 1st annually

Safety and Compliance:

• Maximum Occupancy:
  • Up to eight related individuals, OR
  • Up to four unrelated individuals in STR area
  • Occupancy limit excludes owner/residents
• Parking Requirements: All parking must be off-street (garage, driveway, designated spots)
• Response Requirements: Owner/designee must be available 24/7/365, able to respond within one hour

Operational Requirements:

• Nameplate: Posted near STR entrance showing owner/designee contact information
• Informational Packet: Must include license copy, 24/7 contact info, parking requirements, occupancy limits, noise ordinances, trash pickup dates, emergency contacts
• Noise Compliance: Must evict renters violating noise ordinances more than once in 72-hour period
• Property Maintenance: Must comply with all Sandy City ordinances

Enforcement:

• License Suspension/Revocation: Three or more violations of city codes within 12 months
• Unresponsive Owner: Notice of violation after three unsuccessful contact attempts
• License Renewal: Required annually, failure results in loss of license and permit placement at bottom of waitlist

Application and Fees:

• Application Fees: Regulatory fee $90/$140 (pro-rated), inspection/processing $40
• Late Fees: 25% after 30 days, additional 50% after 45 days, abandonment after 60 days
• Processing Time: Approximately 30 days after complete application submission

State-Level Regulations (Utah):

Legal Framework:

• Definition: STR defined as rental of residential property for fewer than 30 consecutive days (Utah Code § 10-8-85.4)
• Platform Protection: Cities prohibited from blocking STR listings on online platforms or penalizing solely for online offerings
• Municipal Authority: Local governments retain authority to enforce zoning, safety, and regulatory compliance

Regulatory Considerations:

• State Preemption: No comprehensive statewide STR legislation (as of February 2025)
• Local Control: Municipalities empowered to regulate land use and businesses under Utah Code § 10-9a-102(2) and § 10-1-203(2)
• Legal Precedent: Brown v. Sandy City established that unclear ordinances are interpreted against the city, allowing STRs when not explicitly prohibited

Contact Information

Sandy City Business Licensing Department

• Address: 10000 Centennial Parkway, Sandy, UT 84070
• Phone: (801) 568-7252
• Email: BusLic@sandy.utah.gov

Sandy City Planning Department

• Contact: Community Development Department
• Related Departments:
  • Fire Department: 150 E. 9000 S., Sandy, UT 84070, Phone: (801) 568-2938
  • Building & Safety: 10000 Centennial Parkway, Sandy, UT 84070, Phone: (801) 568-7251

Salt Lake County Health Department

• Address: 788 E WOODOAK LN, Murray, UT 84107-6379
• Phone: (385) 468-3845

Utah Department of Commerce (for Business Entity Registration)

• Address: Heber Wells Building, 160 East 300 South, Salt Lake City
• Website: corporations.utah.gov
• Note: Also handles sales tax registration including transient room tax

Links to Source Pages

1. Sandy City STR Information Page: sandy.utah.gov/1859/Short-Term-Rentals
2. Sandy City Business Licensing: sandy.utah.gov/886/Short-Term-Rentals
3. Official STR Application PDF: content.civicplus.com/api/assets/ut-sandycity/01f8514e-6800-44eb-a5aa-cf822b34a556/short-term-rental-application-updated.pdf
4. Utah Municipal Code: library.municode.com/ut/sandy/codes/code_of_ordinances
5. Utah Department of Commerce: corporations.utah.gov
6. State STR Legal Analysis: utahlanduse.org/wp-content/uploads/2025/06/Short-Term-Rentals-2025-Update.pdf

Important Notes for Investors:

• Geographic permit limits create artificial scarcity, making existing permits valuable
• Owner-occupancy requirement significantly restricts investment opportunities
• 182-night annual limit may impact revenue projections for full-time STR operators
• Consider accessory apartment properties for maximum rental potential (365 nights)
• Annual renewal requirements create ongoing compliance obligations
• Community character protection appears to take precedence over economic development

This guide represents current regulations as of the latest available information. Municipal regulations can change, and investors should verify current requirements with Sandy City before making investment decisions.