Overview: Are Short-Term Rentals Allowed in SLC, UT?

Short-term rentals are effectively prohibited in Salt Lake City proper. The city does not have specific regulations or allowances for land use known as "short-term rental." Properties offering accommodations for fewer than 30 consecutive days are categorized as hotel, motel, or bed and breakfast uses under city zoning ordinances. These uses are generally not permitted in residential zoning districts where most housing stock is located.

While this prohibition presents challenges for traditional short-term rental operations, there are legal alternatives for generating rental income from your property that comply with current regulations.

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

Given the regulatory environment in Salt Lake City, investors have several compliant pathways:

1. Long-Term Rental Operations (30+ Days)

The most straightforward approach is to operate as a traditional landlord offering month-to-month or longer tenancies. Units with self-contained kitchens and bathrooms in residential zoning districts can be legally rented for periods of 30 days or more with appropriate business licensing.

2. Accessory Dwelling Units (ADUs)

Salt Lake City allows ADUs on properties located within zoning districts where residential uses are permitted, subject to:

• Owner occupancy requirement for single-family dwellings
• The property owner or owner's family member must live in either the main building or the ADU
• ADUs cannot be subdivided or sold separately from the main building
• You can rent one of the units as long as the owner resides in the other unit and enrolls in the Good Landlord Program
• Business licensing is required

Important Note: Short-term rentals with lease periods under 30 days are considered hotel, motel, or bed and breakfast uses and are generally not permitted in residential zoning districts where ADUs are allowed.

3. Zoning Verification Process

Before proceeding with any rental operation, it's recommended to:

1. Request a Zoning Verification Letter through the Citival Access Portal
2. Consider an Administrative Interpretation to determine in writing that you can use your property for rental purposes
3. Use the online zoning map to determine zoning compliance

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Required Documents, Permits, Licenses, and Guidelines

For Long-Term Rentals (30+ Days)

• Business License - Required for rental operations
• Zoning Verification Letter - Recommended to confirm legal use
• Good Landlord Program Enrollment - Required if renting ADUs on single-family properties
• Building Permits - May be required for property modifications

For ADU Operations

• Business License
• Building Permits - For ADU construction/conversion
• Good Landlord Program Enrollment - Mandatory for single-family properties with ADUs
• Owner Occupancy Documentation

For Short-Term Rental Determination

• Administrative Interpretation Application - To determine if property can be used for short-term rental purposes
• Zoning Verification Letter

Contact Information for Applications

• Planning Counter: 801-535-7700
• Business Licensing: 801-535-7721
• Building Services: 801-535-7938
• Zoning Questions Email: planning@slc.gov

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Specific Regulations for Short-Term Rentals in Salt Lake City

Zoning Restrictions

• No dedicated "short-term rental" land use category exists in Salt Lake City
• Properties offering accommodations under 30 days are classified as hotel/motel/bed & breakfast uses
• These commercial lodging uses are prohibited in residential zoning districts
• Hotel, motel, and bed & breakfast uses are only permitted in specific commercial zoning districts

State Law Constraints

Utah Code 10-8-85.4 prohibits local jurisdictions from "punishing an individual solely for the act of listing or offering a short-term rental on a short-term rental website." This limits enforcement options for the city.

Enforcement Efforts

Salt Lake City has increased enforcement capabilities by:

• Allocating $49,000 for data-gathering software to identify non-compliant properties
• Implementing systems to track booking patterns rather than just online listings
• Focusing on actual usage verification rather than advertising evidence

Property Type Restrictions

• ADUs cannot be used as short-term rentals regardless of owner occupancy status
• Single-family homes with ADUs must have owner occupancy and cannot rent either unit short-term
• Properties must meet minimum parking requirements for rental operations

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State-Level Regulations for Utah

Tax Requirements

• State Sales Tax: 4.85% base rate, but local option taxes often raise effective rates above 7%
• Transient Room Tax: Many counties apply additional 1-4% tax on nightly lodging
• If booking platforms (Airbnb/Vrbo) don't collect these taxes automatically, owners must register with the Utah State Tax Commission

Business Entity Formation

Property owners forming legal business entities (LLCs, corporations) must register with the Utah Division of Corporations and Commercial Code.

Housing Considerations

Utah does not maintain a comprehensive statewide short-term rental framework. Local municipalities handle most regulatory aspects, creating a patchwork of requirements across different cities and counties.

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Contact Information for Local Authority in Charge of STRs

Salt Lake City Planning Division

• Phone: 801-535-7700
• Email: planning@slc.gov
• Address: 451 South State Street, Salt Lake City, UT 84111
• Online Zoning Map: arcg.is/19e4CC

Salt Lake City Business Licensing

• Phone: 801-535-7721

Salt Lake City Building Services

• Phone: 801-535-7938
• Email: building@slc.gov

Civil Enforcement Division

• Phone: 801-535-7224
• Email: building@slc.gov

Online Resources

• Citizen Access Portal: https://aca-prod.accela.com/SLCREF/
• Zoning Verification Letter: http://www.slcdocs.com/Planning/Applications/ZV.pdf
• Administrative Interpretation: http://www.slcdocs.com/Planning/Applications/Administrative%20Interpretation.pdf
• ADU Handbook: http://www.slcdocs.com/Planning/Guides/ADU_Handbook.pdf

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Source Pages

1. Salt Lake City Planning Division - Frequently Asked Questions
2. Building Salt Lake - City Bulks Up Enforcement on Short-Term Rentals
3. RedAwning - Utah Short-Term Rental Laws Guide
4. Online Zoning Map
5. Citizen Access Portal

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Investment Recommendation: Given Salt Lake City's restrictive stance on traditional short-term rentals, investors should focus on long-term rental strategies, ADU development with owner occupancy, or properties in commercially zoned areas where hotel/motel uses are permitted. The regulatory environment favors traditional rental models over the typical short-term rental investment strategy.