Airbnb Salt Lake City, Utah: Market Data, Laws & Investor Guide

Salt Lake City, Utah has emerged as one of the most promising destinations for Airbnb hosts looking to start a short-term rental business in 2024. With its stunning natural beauty, world-class ski resorts, and vibrant cultural scene, Salt Lake City attracts a diverse range of visitors year-round.

According to AirDNA, Salt Lake City's short-term rental market has shown impressive growth, with a 3% increase in active listings and a 5% rise in average monthly occupancy over the past year. This trend is expected to continue, as the city's popularity among tourists and business travelers alike continues to soar.

One of the key factors driving the success of Airbnb rentals in Salt Lake City is the city's strong tourism industry. As a gateway to some of the best skiing and outdoor recreation in the country, Salt Lake City welcomes millions of visitors each year. The Sundance Film Festival, held annually in nearby Park City, also draws a significant number of guests to the area.

Moreover, Salt Lake City's growing economy and thriving tech scene have made it an increasingly popular destination for business travelers. With major companies like Adobe, eBay, and Goldman Sachs establishing offices in the city, the demand for comfortable and convenient short-term housing options has never been higher.

Investing in an Airbnb property in Salt Lake City can be a smart financial move, with the potential for high returns. According to recent data, the average Airbnb host in Salt Lake City with an average daily rate of $195. These figures, combined with the city's increasing popularity and strong rental demand, make it an attractive option for investors looking to capitalize on the short-term rental market.

Salt Lake City Short-Term Rental Market Analysis

To fully understand the potential of starting an Airbnb business in Salt Lake City, it's essential to analyze the current state of the short-term rental market. By examining key metrics such as occupancy rates, nightly rates, seasonality, and growth, investors can make informed decisions and maximize their returns.

Salt Lake City Airbnb Occupancy Rate

• In 2022, the average occupancy rate for Airbnb rentals in Salt Lake City was 67%, a slight increase from the 65% recorded in 2021.
• As of August 2024, the average occupancy rate has risen to 70%, indicating a strong and growing demand for short-term rentals in the city.

Salt Lake City Airbnb Nightly Rate

1. The average daily rate for Airbnb rentals in Salt Lake City was $195 in 2022, up from $185 in 2021.
2. In 2024, the average daily rate has increased to $210, reflecting the city's growing popularity among travelers.

Salt Lake City Airbnb Seasonality

Salt Lake City experiences a relatively stable demand for short-term rentals throughout the year, with peak seasons during the winter months (December to March) and summer months (June to August). The winter season attracts skiers and snowboarders to the nearby resorts, while the summer months draw visitors for outdoor activities and festivals. The city's diverse range of attractions and events helps to maintain a consistent flow of tourists and business travelers.

Salt Lake City, Utah Short-Term Rental Growth Rate

1. Salt Lake City's population grew by 2.1% between 2021 and 2022, outpacing the national average.
2. The number of travelers visiting Salt Lake City increased by 4.5% in 2022 compared to the previous year.
3. The city's tourism industry generated $4.5 billion in economic impact in 2022, a 6% increase from 2021.

Salt Lake City, Utah Key Local Events and Festivals

1. Sundance Film Festival (January)
2. Utah Arts Festival (June)
3. Pioneer Day Celebration (July)
4. Utah State Fair (September)
5. Ski season (November to April)

Salt Lake City Mid-Term Rental Market

Salt Lake City's mid-term rental market, which typically involves stays of 30 days or more, is also showing signs of growth. According to local Airbnb hosts and rental forums, there is an increasing demand for monthly rentals from professionals on extended work assignments, students, and families in transition. The average booking duration for mid-term rentals in Salt Lake City is around 45 days, with rates generally lower than those for short-term stays.

In conclusion, Salt Lake City's short-term rental market presents a compelling opportunity for Airbnb hosts in 2024. With strong occupancy rates, rising nightly rates, a stable demand throughout the year, and a growing mid-term rental market, the city is well-positioned for continued success in the short-term rental industry.

Best Neighborhoods in Salt Lake City for an Airbnb Business

When searching for the ideal location to start an Airbnb business in Salt Lake City, hosts should consider factors such as proximity to popular attractions, up-and-coming areas, and tourist hotspots. By analyzing data-driven insights and incorporating local knowledge, we've identified the top 5 neighborhoods in Salt Lake City for starting an Airbnb.

1. East Central

East Central is a charming neighborhood known for its historic homes, tree-lined streets, and proximity to downtown Salt Lake City. With easy access to Liberty Park and the University of Utah campus, this area attracts a diverse range of visitors.

1. Average Occupancy Rate: 70%
2. Average Daily Rate: $120
3. Airbnb Seasonality: Steady demand throughout the year, with peaks during summer and winter months
4. Estimated Annual Revenue: $30,660
5. Median Property Price (3 bedrooms): $365,000
6. Best Performing Bedroom Count: 3 bedrooms

2. Capitol Hill

Capitol Hill is a historic neighborhood located just north of downtown Salt Lake City. With its stunning views of the city and nearby attractions like the Utah State Capitol and Memory Grove Park, this area is popular among tourists.

1. Average Occupancy Rate: 73%
2. Average Daily Rate: $135
3. Airbnb Seasonality: High demand during summer months and holiday seasons
4. Estimated Annual Revenue: $35,970
5. Median Property Price (3 bedrooms): $550,000
6. Best Performing Bedroom Count: 3 bedrooms

3. Sugar House

Sugar House is a trendy neighborhood southeast of downtown Salt Lake City, known for its eclectic mix of shops, restaurants, and parks. The area's proximity to outdoor recreation and public transportation makes it an attractive option for Airbnb guests.

1. Average Occupancy Rate: 68%
2. Average Daily Rate: $110
3. Airbnb Seasonality: Consistent demand year-round, with slight increases during summer and winter
4. Estimated Annual Revenue: $27,300
5. Median Property Price (2 bedrooms): $400,000
6. Best Performing Bedroom Count: 2 bedrooms

4. The Avenues

The Avenues is a historic neighborhood located northeast of downtown Salt Lake City, featuring beautiful Victorian and Tudor-style homes. Its proximity to hiking trails and downtown attractions makes it a popular choice for Airbnb guests.

1. Average Occupancy Rate: 72%
2. Average Daily Rate: $130
3. Airbnb Seasonality: High demand during summer and winter months
4. Estimated Annual Revenue $34,164
5. Median Property Price (4 bedrooms): $830,000
6. Best Performing Bedroom Count: 4 bedrooms

5. Central City

Central City is an up-and-coming neighborhood just south of downtown Salt Lake City, offering a mix of historic charm and modern amenities. Its central location and affordable housing options make it an attractive choice for Airbnb hosts.

1. Average Occupancy Rate 67%
2. Average Daily Rate: $100
3. Airbnb Seasonality: Steady demand throughout the year, with slight increases during summer months
4. Estimated Annual Revenue: $24,455
5. Median Property Price (2 bedrooms): $350,000
6. Best Performing Bedroom Count: 2 bedrooms

By considering these top neighborhoods and their respective data, hosts can make informed decisions when starting an Airbnb business in Salt Lake City. It's essential to balance factors such as property prices, estimated revenue, and local regulations to ensure a successful venture.

Best Salt Lake City Investment Property Types and Maximizing Your STR Revenue

To maximize your short-term rental revenue in Salt Lake City, it's crucial to understand the best investment property types and the amenities that guests value most. By analyzing recent trends and data, we can identify the most promising opportunities for Airbnb hosts in the city.

Best Real Estate Property Investment in Salt Lake City

Single-family homes:

• 2 bedrooms: Average property price $350,000; Potential annual revenue $28,000
• 3 bedrooms: Average property price $450,000; Potential annual revenue $36,000
• 4 bedrooms: Average property price $600,000; Potential annual revenue $48,000

Condominiums:

• Studio: Average property price $200,000; Potential annual revenue $18,000
• 1 bedroom: Average property price $250,000; Potential annual revenue $24,000
• 2 bedrooms: Average property price $350,000; Potential annual revenue $30,000

Townhouses:

• 2 bedrooms: Average property price $400,000; Potential annual revenue $32,000
• 3 bedrooms: Average property price $500,000; Potential annual revenue $40,000

Apartments:

• Studio: Average property price $150,000; Potential annual revenue $15,000
• 1 bedroom: Average property price $200,000; Potential annual revenue $20,000
• 2 bedrooms: Average property price $300,000; Potential annual revenue $28,000

Best Airbnb Amenities in Salt Lake City, Utah

Based on an analysis of the top-performing Airbnb listings in Salt Lake City, the following amenities have been identified as key factors in maximizing revenue:

• Hot tub or private pool: Listings with a hot tub or private pool tend to command higher nightly rates and attract more bookings, especially during the colder months.
• Ski storage and drying facilities: Given Salt Lake City's popularity as a ski destination, providing secure ski storage and drying facilities can be a significant draw for winter guests.
• High-end kitchen appliances: Listings with well-equipped kitchens, including high-end appliances like gas ranges and wine refrigerators, tend to perform better and attract more bookings.
• Smart home technology: Incorporating smart home features such as keyless entry, voice-controlled lighting, and smart thermostats can enhance the guest experience and streamline the hosting process.
• Outdoor living spaces: Properties with well-designed outdoor living spaces, such as patios, decks, or balconies, are highly sought-after by guests looking to enjoy Salt Lake City's beautiful scenery.
• Unique decor and local artwork: Incorporating unique decor elements and showcasing local artwork can help your listing stand out and create a memorable experience for guests.

By focusing on these top-performing property types and incorporating the most in-demand amenities, Airbnb hosts in Salt Lake City can maximize their short-term rental revenue and create a successful business in this thriving market.

Understanding Salt Lake City Short-Term Rental Regulations

Salt Lake City currently prohibits short-term rentals in residential districts, with no plans to change this policy. Short-term rentals are only allowed in commercial and mixed-use districts for nightly sleeping accommodations, such as hotels, motels, hostels, and bed and breakfasts, if permitted by the zoning district and licensed accordingly.

To operate a short-term rental in Salt Lake City, the property must be located in a commercial or mixed-use district that allows for nightly sleeping accommodations. Hosts must obtain a business license from the City and ensure that the property meets all fire safety code standards and other applicable state and local codes. If food preparation is involved, compliance with the Salt Lake Valley Health Department regulations is also required.

Salt Lake City strictly enforces the rules prohibiting short-term rentals in residential districts, with fines and cease of operations as potential consequences for non-compliance. The City has allocated funds for data-gathering software to identify illegal short-term rental properties.

While there are no specific short-term rental taxes in Salt Lake City, if such rentals were permitted in the future, hosts would likely need to collect and remit lodging taxes, including Utah Combined Sales Tax, Utah State Transient Room Tax, and Local Transient Room Taxes.

Read our full STR regulations guide for more detailed information about Salt Lake City’s short-term rental regulations, including insights from local hosts and a closer look at other policies.

Keys to Success as a Salt Lake City Airbnb Host

Becoming a successful Airbnb host in Salt Lake City requires a combination of strategic planning, creative design, and effective marketing. By understanding the unique characteristics of the local market and implementing best practices, hosts can maximize their revenue and create memorable experiences for their guests.

Popular Design Themes in Salt Lake City

Based on an analysis of the top-performing Airbnb listings in Salt Lake City, the following design themes and layouts have been identified as key factors in attracting guests and maximizing revenue:

• Modern Mountain Chic: Incorporate natural materials like wood and stone, paired with modern furnishings and clean lines to create a cozy yet sophisticated atmosphere that reflects the city's mountain setting.
• Rustic Industrial: Combine exposed brick, metal accents, and vintage-inspired decor to create a trendy, urban vibe that appeals to younger travelers and those seeking a unique experience.
• Mid-Century Modern: Embrace the timeless appeal of mid-century modern design with iconic furniture pieces, bold colors, and geometric patterns to create a stylish and inviting space.
• Scandinavian Minimalism: Opt for a clean, minimalist aesthetic with white walls, natural light, and simple, functional furnishings to create a serene and relaxing environment for guests.

How to Attract More Salt Lake City Customers

• Highlight local attractions: Showcase your property's proximity to popular destinations like ski resorts, hiking trails, and cultural attractions in your listing description and photos.
• Offer unique experiences: Partner with local businesses to provide exclusive discounts or packages for your guests, such as ski passes, guided tours, or culinary experiences.
• Leverage social media: Use platforms like Instagram and Facebook to showcase your property's unique features and engage with potential guests by sharing local tips and recommendations.
• Optimize your listing: Use high-quality photos, detailed descriptions, and competitive pricing to make your listing stand out and attract more bookings.

Potential Challenges and Guidelines to Success for Salt Lake City Airbnb Hosts

• Seasonal demand fluctuations: Be prepared for variations in demand throughout the year, with peak seasons during winter and summer months. Consider adjusting your pricing and marketing strategies accordingly.
• Strict regulations: Ensure compliance with Salt Lake City's short-term rental regulations, including zoning restrictions and licensing requirements, to avoid fines and legal issues.
• Competition from hotels: Differentiate your property by offering unique amenities, personalized service, and a more authentic local experience compared to traditional hotels.
• Maintenance and upkeep: Regularly inspect and maintain your property to ensure a high-quality experience for guests and prevent negative reviews.
• Effective communication: Respond promptly to guest inquiries, provide clear check-in instructions, and be available to address any concerns or issues during their stay to maintain a positive reputation.

By implementing these design themes, marketing strategies, and guidelines, Airbnb hosts in Salt Lake City can overcome potential challenges and create a successful and profitable short-term rental business.

Using BNBCalc to Find Profitable Properties in Salt Lake City, Utah

Aspiring Airbnb hosts in Salt Lake City can benefit greatly from using BNBCalc, a powerful tool designed to help investors find and analyze profitable short-term rental properties. By leveraging BNBCalc's features and following a systematic approach, hosts can make informed decisions and maximize their returns in this thriving market.

1. Analyze Properties Using BNBCalc

Start by using BNBCalc's property search feature to identify potential investment opportunities in Salt Lake City. Enter your desired location, property type, and price range to generate a list of suitable properties. Once you've found a property of interest, use BNBCalc's analysis tools to estimate your potential revenue, expenses, and return on investment based on historical data and market trends.

2. Benchmark Comparable Rentals

BNBCalc allows you to compare your selected property to other nearby rentals in the area. By analyzing the performance of similar listings, you can gain valuable insights into pricing strategies, occupancy rates, and amenities that attract guests. Use this information to optimize your own listing and ensure that you're fetching top dollar for your short-term rental.

3. Determine the Right Price and Property Size

BNBCalc's advanced algorithms can help you determine the optimal number of bedrooms, bathrooms, and purchase price to maximize your revenue potential. By inputting various scenarios and adjusting key variables, you can identify the sweet spot that balances your investment costs with your expected returns, ensuring a profitable venture in the Salt Lake City market.

4. Make an Offer

Once you've identified a property that meets your investment criteria and offers strong returns, it's time to make an offer. BNBCalc has partnered with STR lenders to help investors get prequalified and secure financing for their short-term rental properties. We recommend working with Brian Bockholdt at Alliant Credit Union, who offers some of the lowest rates in the industry.

5. Use Our Tax Calculator

Don't forget to take advantage of BNBCalc's tax calculator to determine potential tax deductions from bonus depreciation. By accurately tracking your expenses and understanding the tax implications of your short-term rental business, you can minimize your tax liability and maximize your overall profitability.

6. Come Up With a Buy Box

When creating a buy box for your Salt Lake City Airbnb investment, focus on properties that offer the following qualities:

• Located in top-performing neighborhoods like East Central, Capitol Hill, or Sugar House
• Priced competitively based on BNBCalc's revenue projections and market analysis
• Offers unique amenities or features that appeal to Salt Lake City guests, such as ski storage or outdoor living spaces
• Requires minimal renovations or upgrades to meet guest expectations and maintain high occupancy rates
• Provides a strong return on investment, with a cap rate of at least 8% and a cash-on-cash return of 10% or higher

By incorporating these specific qualities into your buy box, you can streamline your property search and focus on investments that have the greatest potential for success in the Salt Lake City short-term rental market.

Ready to start your Airbnb journey in Salt Lake City? Use BNBCalc to analyze potential properties and make informed investment decisions. Our powerful tool provides comprehensive data to help you maximize your profits. Check out this pre-analyzed Salt Lake City Airbnb opportunity and see how BNBCalc can help you succeed in the short-term rental market. Visit BNBCalc.com today and take the first step towards building your Airbnb business.