Provo City Council evaluates new rental and business fee structures amid landlord program debate

The Provo City Work Meeting on June 17, 2025, focused on the potential implementation of a "good landlord program" and adjustments to business and rental dwelling licensing fees. The discussion highlighted the requirements set by state code, which mandates that cities adopting a disproportionate rental license fee must also establish a good landlord program and a fee reduction initiative.

City officials reviewed a study indicating the true costs associated with issuing business and rental licenses, emphasizing that the proposed fee increases are intended to cover these costs rather than generate excess revenue. Currently, Provo's business licensing fees range from $125 to $800, with a projected increase that could raise annual revenue from $500,000 to as much as $960,000 if a disproportionate fee is adopted.

Concerns were raised regarding the effectiveness of the good landlord program, as feedback from other cities indicated that such programs often do not yield measurable benefits. Many cities reported that the programs were burdensome and did not improve rental quality. The consensus among surveyed cities was largely against implementing a good landlord program, with only a few suggesting it might be beneficial for better control.

The council also discussed the current rental licensing fees, which are significantly lower than the proposed adjustments. The existing fees are $20 for a single unit and $60 for two or more units, which does not accurately reflect the costs incurred by the city. Proposed changes could increase revenue from rental licenses to $540,000 for base fees and $822,000 with the disproportionate fee.

The meeting concluded with a recommendation to adopt the new fee structure while considering the implications of the good landlord program. City officials acknowledged the need for further discussion on how to enhance rental quality without imposing excessive costs on landlords or the city itself. The council is expected to revisit these topics in future meetings as they weigh the benefits and drawbacks of the proposed changes.