Salt Lake City to begin requiring business licenses for short-term rentals

KEY TAKEAWAYS

• Salt Lake City will require business licenses for short-term rentals starting July 1.
• The ordinance limits licenses, enforces safety codes and addresses nuisance issues.
• Violations could lead to fines or license revocation to protect housing availability.

SALT LAKE CITY — Short-term rentals, like Airbnb or Vrbo, have been in Salt Lake City's zoning code for years, but Utah's capital city is now cracking down on recent challenges through an ordinance that will require business licenses to operate them.

"I'm glad we can add this component because I think it'll ensure safety for residents," said Salt Lake City Councilman Chris Wharton during a work session before the Salt Lake City Council approved the new ordinance within its latest budget last week.

Salt Lake City currently permits short-term rentals largely in zoning districts where hotels are allowed, while barring accessory dwelling units functioning as a short-term unit. It also created new civil enforcement officer positions a few years ago to primarily focus on short-term rental compliance, as they've become more prominent.

What city leaders approved last week tightens these regulations amid housing availability concerns and growing nuisance issues. The ordinance, which goes into effect on July 1, requires business licensing for people who offer short-term rentals within city limits, while establishing many different ground rules.

A resident could receive only one license, which is nontransferable. The licensee must own the property, and the dwelling must comply with all other existing safety codes. There will be a limit of one license for a multifamily building with 10 units or fewer, and only up to 10% of units could receive a license among buildings with more than 10 units, according to the measure.

A dwelling or unit could offer multiple rooms within that licence, Salt Lake City planning director Nick Norris clarified.

Some measures are subject to homeowners' association approval, such as those living in condominiums. It would be set aside on a first-come, first-served basis for those in multiunit buildings.

A licensee would have to post their short-term rental business license number on all listings, and they would have to maintain strict records to show they have complied with the rules. A unit cannot be used more than 200 nights per year, and a guest would have to stay there for at least two consecutive nights.

The latter seeks to deter nuisance issues, many of which have occurred when there are one-night rentals for large parties, said Arturo Garcia, director of finance operations for the city. The ordinance would also require a licensee to comply with all noise, waste and nuisance regulations.

"The contact is actually there to respond to any nuisance and address the nuisance within two hours," Garcia said, adding that many of the other measures would go toward ensuring units aren't used as "full-time hotels" to protect housing availability.

Members of the City Council added language to include safeguards in the code, like requiring a carbon monoxide detection system in a short-term unit. Violations of the code could result in suspension or revocation of the license, and the licensee could also face weekly fines of up to $1,000 for operating out of compliance.

The city's new code matches what many other cities have done to handle short-term rentals, city officials explained. Norris explained that they can create housing availability issues within hot housing markets, like Salt Lake City's.

Yet, the new measure was approved not long after the city cracked down on large parties that sometimes convened at short-term rentals. The City Council approved an ordinance last year that increases penalties for parties, gatherings or events on private properties that "disturb the public peace, safety and welfare of the community."

Those who see short-term rental issues are urged to report the issue through the city's app or civil enforcement.

While Wharton said he's frustrated that the city can't address short-term rentals because of the state code, Salt Lake City Council Vice Chairwoman Erika Carlsen said she was thrilled with some elements the ordinance will introduce, such as the requirement that ensures nuisance concerns are quickly addressed.

"I appreciate the thoughtfulness that went into this," she said.

The Key Takeaways for this article were generated with the assistance of large language models and reviewed by our editorial team. The article, itself, is solely human-written.

Related topics

Utah housingUtahSalt Lake CountyBusiness

Carter Williams

• 
• 

Carter Williams is a reporter for KSL. He covers Salt Lake City, statewide transportation issues, outdoors, the environment and weather. He is a graduate of Southern Utah University.