Orem City Council reviews ordinance for regulating short term rentals amid state changes

Orem City Council is taking significant steps to address the regulation of short-term rentals following recent legislative changes in Utah. During the council meeting on March 11, 2025, officials discussed the current prohibition of short-term rentals in Orem and the implications of House Bill 256, which allows municipalities to regulate these rentals more effectively.

Currently, any short-term rental operating in Orem is in violation of city code. The council is considering clarifying this prohibition in the city code to ensure residents and businesses understand that short-term rentals are not permitted in any zone. This clarity is essential as the city prepares for the new state legislation that will take effect in May, enabling Orem to adopt a permitting or licensing system for short-term rentals.

The proposed regulatory framework aims to balance the preservation of residential neighborhoods with the evolving landscape of lodging options in the gig economy. Council members expressed a desire to maintain the residential quality of neighborhoods while recognizing the demand for short-term rental options like Airbnb and VRBO.

The draft ordinance presented during the meeting outlines several regulatory approaches, including occupancy limits, geographic restrictions, and density regulations. One key discussion point was whether to require owner occupancy for short-term rentals, which could impact property tax designations and revenue for local schools.

Council members are encouraged to provide feedback on the draft ordinance, which aims to ensure that short-term rentals operate safely and do not overwhelm residential areas. The council's next steps will involve further discussions to refine the regulations and prepare for implementation in line with the new state law.

As Orem City navigates these changes, the council remains committed to promoting public health, safety, and welfare while adapting to the needs of property owners and the community. The outcome of these discussions will shape the future of short-term rentals in Orem, balancing the interests of residents and the evolving market for temporary lodging.