City Council proposes new occupancy limits for short term rentals

During the Orem City Council meeting on April 8, 2025, discussions centered around proposed regulations for short-term rentals (STRs) in the city, reflecting ongoing concerns about neighborhood integrity and the balance between property rights and community standards.

The council revisited the topic of occupancy limits for STRs, with a proposed maximum of eight occupants per rental unit. This figure was compared to regulations in neighboring cities, where occupancy limits varied significantly. For instance, Provo allows up to ten occupants, while Sandy has no maximum limit. The council emphasized the need for a framework that maintains the character of residential neighborhoods while allowing property owners to operate short-term rentals.

Council members expressed differing opinions on the proposed limit. Some argued that eight occupants might be too restrictive, particularly for larger homes that could accommodate more guests. Others highlighted the importance of enforceability, suggesting that a clear occupancy cap would simplify enforcement for local authorities. The discussion also touched on the implications of allowing larger groups, including potential noise and parking issues that could arise from increased occupancy.

In addition to occupancy limits, the council considered implementing a parking plan requirement for STRs, mandating that property owners provide adequate off-street parking based on the number of bedrooms in the rental. This measure aims to mitigate parking congestion in residential areas, a common concern among residents. The council discussed the challenges of enforcing parking regulations, particularly on public streets, but agreed that property owners should be held accountable for ensuring their renters comply with parking guidelines.

Another significant topic was the potential for limiting the number of nights a property could be rented out annually. Some council members expressed skepticism about the effectiveness of such a limit, arguing that it might not significantly reduce the impact of STRs on neighborhoods. Instead, they suggested focusing on existing noise and nuisance ordinances to address problematic rentals.

The meeting also highlighted the importance of transparency in ownership, particularly concerning properties owned by LLCs. Council members discussed the need for regulations that would require property owners to disclose their identities, preventing circumvention of occupancy limits through corporate ownership structures.

As the council continues to refine the proposed STR regulations, they aim to strike a balance that protects the interests of both property owners and the surrounding community. The discussions reflect a broader trend in many cities grappling with the rise of short-term rentals and their impact on residential neighborhoods. The council plans to revisit these topics in future meetings, with the goal of finalizing an ordinance that addresses the concerns raised by both residents and property owners.