Overview
Short-term rentals (STRs) have become an increasingly important topic for local governments in recent years as communities evaluate how these types of uses fit within their existing residential neighborhoods and broader housing goals.
Under §10-8-85.4/§17-50-338 of Utah State Code (as amended), a short-term rental is defined as:
“A residential unit (i.e., a residential structure or any portion of a residential structure that is occupied as a residence) or any portion of a residential unit that the owner of record or the lessee of the residential unit offers for occupancy for fewer than thirty (30) consecutive days.”
In practical terms, a STR is a residential property, or portion of a residential property, that is rented for temporary lodging stays of less than thirty (30) consecutive days.
The growth of online hosting platforms such as Airbnb, Rent By Owner, and VRBO has made it easier than ever for property owners to offer homes, accessory units, or individual rooms for temporary occupancy.
Additionally, the increased popularity of STRs has been influenced by several factors, including:
- Increased demand for alternative lodging options.
- Changes in travel patterns following the COVID-19 pandemic.
- Rising housing costs and economic pressures.
- Property owners seeking additional income opportunities.
From a property owner perspective, STRs can provide financial flexibility by allowing owners to rent portions of their homes or entire residences on a temporary basis. STRs can also provide communities with additional lodging options, support tourism, and generate economic activity.
However, the increased presence of STRs has also raised planning considerations for many communities. Local governments and residents have expressed concerns regarding issues such as:
- Compatibility with surrounding residential neighborhoods.
- Increased noise, traffic, and parking impacts.
- Property maintenance and enforcement challenges.
- Changes in neighborhood character.
- Potential impacts on long-term housing availability.
- Concentrations of STRs within specific areas.
Communities across Utah and the nation have taken different approaches to regulating STRs, including allowing them broadly, establishing licensing programs, creating operating standards, limiting locations or density, or restricting certain types of STR activity altogether.
STRs represent a unique land use issue because they occupy a space between traditional residential uses and commercial lodging uses. Effective regulation requires local governments to carefully evaluate community goals, neighborhood compatibility, housing considerations, property rights, and the administrative ability to enforce adopted standards.
Content Contributors: Jones and DeMille Engineering, Inc, Hansen Planning Group, LLC / Rural Community Consultants, Southern Utah University – Master Of Public Administration (MPA) Program
Special Note: This material was developed by civiclinQ for the Land Use Academy of Utah (LUAU). Funding for the development of this material was provided by through the Land Use Training Fund, which is administered by the Office of the Property Rights Ombudsman , utilizing a portion of the 1% surcharge on all building permits in the State of Utah.
The role of this organization in administering funding is primarily administrative and should not be viewed as legal advice. Always consult your legal representative when addressing land use activities.
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