Utah Municipalities Update Airbnb Laws and Regulations to Appease Local Communities
With the growing short-term rental industry, many Utah cities have chosen to pass additional Airbnb laws. From requiring permits to maintaining fire and safety standards, these are the laws that owners should be aware of.
Cedar City Seeks Balance Between Short-term Rental Hosts and Citizens with New Airbnb Laws
Joining an ever-growing list of cities seeking to pass Airbnb laws, Cedar City, Utah, has passed regulations governing the zones in which rentals are allowed to be operated and the types of licenses required. Operators of short-term rentals will be required to have a business license, carry insurance, and pay all required taxes. Other requirements include the following:
- License with the city in order to operate
- Adequate amounts of parking
- Compliance with all noise regulations
- Compliance with fire code
- A designated contact who is available to respond to complaints and issues 24/7
- Proof of liability insurance.
While Cedar City may require liability insurance on short-term rentals, a policy only covering liability leaves gaps for owners and hosts. The primary reason for an insurance requirement is to ensure that short-term rental owners are properly protected from injuries or property damage from a guest. However, the current requirement may cause confusion for owners as the type of insurance is not defined. Basic Homeowner’s insurance usually has a “business exclusion clause,” which limits coverage against any business activities and means that any liability claims relating to your short-term rental won’t be covered.
Commercial general liability is found in business insurance policies and protects the insured against claims of bodily injury or property damage they could be found legally liable. It is the most comprehensive liability insurance one can purchase for short-term rentals.
Salt Lake County Enacts Additional Airbnb Laws Requiring Licenses for Short-Term Rentals
Salt Lake County has enacted a series of Airbnb laws seeking to balance between residents and hosts. Short-term rentals will now be required to obtain a license with the county. Applications for these licenses should include the following:
- The location of the short-term rental,
- The number of rooms therein contained,
- The number of persons the short-term rental will accommodate,
- The name of a property manager,
- A sales tax collection and accounting number,
- The name, address, and telephone number of a local responsible party who is available by telephone twenty-four hours per day
- The application shall include a statement by the applicant affirming that the applicant is currently in compliance with all legal requirements and has paid all applicable taxes, fees, and other charges, including but not limited to the transient room tax.
Hosts should also expect an inspection of the rental property in question with periodic follow-ups to ensure the safety of guests.
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