Orem Short Term Rental Regulation: A Guide For Airbnb Hosts

What are short term rental (Airbnb, VRBO) regulations in Orem,Utah?

Short term rentals, commonly booked through platforms like Airbnb and Vrbo, have become increasingly popular across the United States. For cities, the rise of short term vacation rentals prompts questions around zoning, taxes, neighborhood impact, and more. Regulations on short term rental operations vary significantly between local jurisdictions.

As a short term rental host or prospective operator in Orem, Utah, it is essential to understand the city's specific rules, which determine where and how you can rent out property. This article outlines key short term rental regulations in Orem, helping hosts achieve compliance and avoid issues.

We'll cover topics including business licensing requirements, eligible zoning districts, taxes that must be remitted, occupancy limits, parking regulations, and other short term rental operation rules in Orem. We'll also look at how strictly Orem enforces its short term rental policies compared to other Utah cities.

With a clear understanding of Orem's short term rental regulations, hosts can evaluate how amenable the city is to vacation rentals and what steps they need to take to operate legally. The information provided serves as a starting point for hosts to conduct further research and connect with local authorities.

By informing yourself and complying with regulations, you can save time, money, and headaches as an Orem short term rental operator.

Starting a Short Term Rental Business in Orem

Operating a short term rental in Orem requires some preparation but can be a lucrative business if done properly. As an initial step, you’ll need to verify that short term rentals are permitted based on the property's zoning designation. In Orem, these rentals are only allowed in commercially zoned areas.

Next, register your rental property by obtaining a business license from the city. This covers all short term rentals owned. With license in hand, you must then register with the Utah State Tax Commission to collect and remit applicable sales taxes on bookings.

With the legalities addressed, focus shifts to preparing the unit. Establish house rules, upgrade amenities, and decorate to match the style of your ideal guest. Attention to detail here helps ensure five-star reviews.

Finally, choose the right listing platforms to advertise your Orem rental. Airbnb and Vrbo are ideal for reaching leisure travelers seeking convenient lodging as an alternative to hotels. High-quality photographs attract bookings.

As demand grows, consider adding more units to build your short term rental empire. Orem’s proximity to outdoor recreation makes it a popular destination. By following proper regulations upfront, hosts can thrive. Reach out to the Orem City Planning Office with any other questions.

Short Term Rental Licensing Requirement in Orem

The city of Orem mandates that all short term rental hosts and operators acquire a business license before listing or renting out their properties. This licensing requirement applies to every short term rental in Orem, regardless of the zone it is located in.

As a prospective host, you need to submit an application and pay the licensing fee to legally qualify for conducting short term rental business activities in Orem. The license needs to be renewed annually for continued operations.

This short term rental license allows you to operate one or more residential properties as short term rentals across Orem. There is no need to obtain separate licenses for every rental unit you own. Rather, a single citywide business license from Orem covers all your local short term rental offerings in the city.

Make sure you have this rental license in place before advertising or hosting any guests to avoid hefty fines. Display the certificate prominently in your listed properties as well to affirm your compliant status. Stay up-to-date with renewals and licensing terms to steer clear of penalties and disruptions.

Required Documents for Orem Short Term Rentals

Operating a legal short term rental in Orem requires collecting some key paperwork. As the rental owner, you are responsible for having these documents ready before hosting any guests or listing your Orem property online.

Failing to register properly or missing certain permits can lead to penalties, so it is crucial to inform yourself and prepare thoroughly.Below are the essential documents the city of Orem stipulates you must have to run your short term rental above board:

Proof of Ownership

You must be the legal property owner or have written consent from the owner to operate the unit as a short term rental. Submit documentation like your deed, title records, or a notarized letter from the landlord.

Business License

Apply for an official Orem business license to cover short term rental activities. This registration process also involves declaring details like the rental's address, number of rooms, parking capacity and maximum occupancy.

Tax Compliance Registration

Collecting and paying state and local lodging taxes is mandatory. You'll need to register with Utah's tax authorities accordingly to meet this requirement before hosting guests.

Orem Short Term Rental Taxes

The taxes that apply to Orem short term rental transactions are:

• Utah State Sales Tax: This is a tax rate of 6.85% that must be collected on all short term rental stays in Utah. As an Airbnb or Vrbo host facilitating a booking transaction, you are responsible for charging guests this sales tax rate and submitting payments on a timely basis to the Utah State Tax Commission.
• Orem City Transient Room Tax: Orem imposes a 1% tax on all hotel, motel, and short term rental lodging that lasts less than 30 consecutive days in the city. As an Orem host, you need to factor this 1% tax on top of the state sales tax and incorporate it into your rental rates. This transient room tax must then be remitted to Orem City.
• Resort Communities Tax: In certain designated resort areas in Orem, an additional 1.6% tax applies to short term rental stays on top of general sales tax. Ensure you verify if your rental property is located in one of these resort zones and collect/remit this tax accordingly.

As a short term rental operator, staying on top of your local, city, and state tax obligations is crucial for legal compliance and smooth business operations.

Reach out to local authorities if you ever have questions or need clarification as laws and rates are subject to change. With preparation and diligence, managing STR taxes properly does not have to be overly burdensome.

Orem wide Short Term Rental Rules

Orem has implemented citywide regulations that all short term rental operators must follow. These rules help ensure short term rentals do not create issues for neighborhoods while also allowing hosts to run their businesses.

Zoning Restrictions The city prohibits short term rentals from operating in areas zoned as agricultural or residential. This includes single-family homes, duplexes, apartments, and condos located in neighborhoods. Short term rental properties must be located in areas zoned for commercial use.

Occupancy Limits Orem restricts occupancy in short term rentals based on the number of bedrooms. Operators cannot exceed the following maximum guests:

• 1 Bedroom: 2 guests
• 2 Bedrooms: 4 guests
• 3 Bedrooms: 6 guests
• 4 Bedrooms: 8 guests

Going over occupancy limits can result in fines.Parking RulesShort term rental properties must have adequate parking available on-site for guests, with at least 1 spot per bedroom. Parking is not allowed on landscaped areas or sidewalks. Fines can be issued for parking violations.

Noise Regulations Excessive noise from short term rental guests is prohibited during late night hours from 10 pm to 7 am.

Hosts are responsible for ensuring guests follow noise rules.Fines start at $100 per incident for violations of these citywide short term rental regulations. Multiple violations can also lead to license suspension or revocation.

Does Orem strictly enforce STR rules?” Is Orem Airbnb friendly?

Orem does strictly enforce regulations around short term rentals operating illegally in restricted zones. The city's Neighborhood Improvement Team actively investigates complaints made by community members regarding non-compliant short term rental properties.

When violations are found, the enforcement team issues citations and levies fines to the owners and operators of these short term rentals. Repeat offenders may face escalating penalties.

However, some short term rental hosts on online forums report still attempting to operate rental properties in zones where they are prohibited, despite the risks of fines. These hosts try to avoid drawing the attention of neighbors and authorities.

So while Orem's enforcement of the rules seems strict based on penalties issued, some illegal short term rentals still try to operate under the radar.

Overall, Orem has a moderately restrictive stance on short term rental regulations compared to other Utah cities.

The city government is working to ease confusion around zoning and regulations to support legal short term rental operators, while cracking down on those clearly flaunting the rules. So Orem cannot be considered outright "Airbnb-friendly," but takes a balanced approach trying to accommodate different community needs.

How to Start a Short Term Rental Business in Orem

Launching a lucrative and legal short term rental business in Orem requires advanced preparation but the payoff can be worth the effort. Follow this clear-cut 10-step guide to get your Orem investment property ready for its debut on Airbnb and Vrbo.

• Research Orem's zoning regulations in detail. Confirm short term rentals may operate in the area and neighborhood where your rental property is located. Operating without approvals risks fines.
• Submit your short term rental business license application to the city. This single license covers all short term rentals owned. Renew annually.
• Register to collect state, county and city lodging taxes applicable to short term rental income. Remit on schedule to avoid penalties.
• Optimize your property for the short term rental market. Add amenities like smart locks, updated furnishings and high speed WiFi that today's travelers expect.
• Craft an appealing listing with professional photography to showcase your rental's best features. Write clear house rules and cancellation policies. Sync calendar across platforms.
• Implement a streamlined check-in process. Provide local recommendations to delight guests. Plan to exceed expectations on cleanliness and communication.
• Utilize dynamic pricing tools to maximize occupancy and revenue. Adjust rates based on seasonal demand shifts.
• Develop a 5-star cleaning, maintenance and restocking routine between guests. Schedule contractors in advance when necessary.
• Monitor listing performance every quarter. Adjust pricing, availability and improvements as needed. Respond promptly to all guest reviews.
• Explore expanding your Orem short term rental portfolio once systems are proven. The city issues single licenses valid for all units.

Follow this roadmap to launch your Orem short term rental business professionally and profitably while maintaining compliance. Adjust timelines and tasks to suit your specific investment goals. Consistent effort over time can yield substantial rewards.

Who to contact in Orem about Short Term Rental Regulations and Zoning?

To learn about short term rental regulations in Orem, contact the city's Planning Division:

Phone: (801) 229-7177

Email: planning@orem.org

Address: Orem City Planning Division
56 North State Street
Orem, UT 84057

Property owners interested in starting a short term rental business in Orem should first reach out to the Planning Division. The division staff can verify if short term rentals are permitted for their property address and zone. They can also explain the application process for obtaining a short term rental business license.

What do Airbnb hosts in Orem on Reddit and Bigger Pockets think about local regulations?

Orem hosts report having mixed interactions when working with city officials on short term rental compliance and complaints. Some hosts describe positive communications and reasonable enforcement actions from the city's Neighborhood Improvement Team.

However, other hosts feel targeted by city officials and neighbors, claiming unreasonable citations or fines. A few even shut down their listings after repeated neighbor complaints.

Concerns Over Recent CrackdownsMany Orem hosts express growing concerns regarding the city's enforcement of short term rental zoning restrictions over the past year. Several residential area operators have received notices to cease operations or faced fines.

Some feel the city regulations unfairly ban short term rentals from certain zones without clear justification. Others note ambiguity in the rules that leave hosts unsure of their legal status.

Continued Operation Despite ChallengesWhile hosts acknowledge facing more scrutiny, several Reddit and BiggerPockets commenters indicate they plan to continue operating in restricted zones until forced to close. Some describe tactics to avoid drawing further complaints from neighbors or city officials trying to clamp down.In general, Orem hosts demonstrate a willingness to deal with the challenges of today's more restrictive short term rental landscape in the city, in order to keep their businesses running.