Utah's HB180: Regulating Short-Term Rentals

Utah House Rep. Gay Lynn Bennion has proposed a bill, HB180, that would establish new guidelines for operating short-term rentals in the state. The bill aims to create a level playing field with other lodgings like hotels and set a state standard of safety for short-term rentals.

Under the proposed bill, each short-term rental must have a local contact, who can be a co-host or property manager, within a one-hour drive, who can represent a maximum of 20 properties. Owners and contacts would be required to complete an approved training course. The bill also includes provisions for occupancy limits and mandates that rentals have smoke detectors, carbon monoxide detectors, and fire extinguishers.

Bennion believes the bill could discourage Wall Street investors from buying houses in Utah and protect local short-term rental owners. However, the bill faced opposition from Airbnb, the Utah League of Cities and Towns, and some lawmakers who believe cities should regulate short-term rentals on their own.

During a House Business and Labor Committee hearing, lawmakers voted 11-1 to hold HB180, making it unlikely to move further in the legislative session. Critics argued that the bill would burden cities and counties excessively and introduce bureaucratic complications.

While Bennion sees both positive and negative aspects of short-term rentals, she believes it's time for Utah to establish a state foundation for regulating them. The bill's fate remains uncertain as the 2024 Utah Legislative Session ended on March 1.

What's Next - Approval Timeline and Will It Pass?

If passed, HB180 would require all short-term rental operators in Utah to obtain permits, even in jurisdictions that currently do not require them. Operators would also need to get sales tax licenses, complete education courses, and post permit numbers on all advertisements. These additional regulations have been met with resistance from those who view them as an undue burden on property rights.

As Utah grapples with housing affordability issues, the debate around short-term rental regulations is likely to continue. While HB180 may not advance this session, the conversation around balancing property rights, local control, and statewide standards for short-term rentals is far from over. Currently, the bill is still pending house action and hasn't had any movement since the Utah Legislative Session ended.