Regulations for short-term rentals in the works
Oct 30, 2024 05:10PM ● By Cassie Goff
“The average number of monthly short-term rental listings increased by 39.4% from 16,803 in 2021 to 23,428 in 2023. At the state level, short-term rental listings account for approximately 1.9% of all residential units.” (The Evolving Landscape of Utah’s Short-Term Rental Market/Kem C. Gardner Policy Institute)
It is estimated that there are 400 unregistered short-term rentals within the city boundaries of Cottonwood Heights. Increasing residential concern has led to the Cottonwood Heights City Council beginning preliminary conversations to update their short-term rental ordinances. even though there are some state limitations to what the local municipality can do in relation to some identification and enforcement issues.
“We can’t ignore it anymore,” said Councilmember Suzanne Hyland. “Ski season is right upon us and there is a lot of chatter for the legislative session in the next year.”
After hearing from Rep. Gay Lynn Bennion at the state level and listening to many residents who asked for help getting short-term rental issues under control, Hyland has asked her fellow councilmembers to work with her on an attempt to pull together a process for updating the city’s short-term rental policies with the intention of getting as many short-term rentals into compliance.
The city’s current code of ordinances related to short-term rentals sets a fine of $100 per day for those out of compliance. However, short-term vacation rental (like Airbnb and VRBO) profits are often worth incurring that fine for many residents. Hyland referenced the recent action by Brighton to increase the fee to $650 per day and suggests Cottonwood Heights follows suit.
“(CHPD) Chief (Robby) Russo said we have to increase the fine since they are making $1,200 per night,” Hyland said.
Hyland would also like to see a larger effort made to work with the city lobbyists so they fully understand how much the city is being effected by the inconsistencies related to managing and legislating short-term rentals. The State of Utah has been in ongoing conversations related to identification, legislation and enforcement of short-term rentals for the previous few years. Some of their solutions to address issues related to short-term rentals have limited (and negatively impacted) local municipalities.
In order to effectively have those conversations with city lobbyists, legislators and representatives, she would like the city council to start identifying their main objectives in relation to housing within the city’s boundaries. Hyland has asked her counterpart councilmembers to read up on some research related to short-term rentals.
“We need to identify who we are as a council and start with policy objectives,” Hyland said.
In the meantime, she has recommended establishing a small subcommittee to focus in on the details of these conversations related to short-term rentals. This small subcommittee would meet regularly and report back to the city council with recommendations.
“We don’t want to be working in a vacuum,” Hyland said.
Hyland suggested this small subcommittee be comprised of one councilmember, one member from the city’s Planning Commission, one city staff member from the Economic Development Department, and one code enforcement officer.
Ongoing conversations related to short-term rentals will continue through the year as the Cottonwood Heights City Council works to establish their objectives for a short-term rental ordinance update. Short-term rentals are also anticipated to be at the center of some hot conversations well into next year with the upcoming state legislative session.