Utah Short-Term Rental Laws: City-by-City Regulations Guide for 2026

Cedar City, Utah Short-Term Rental Regulations

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 City, Utah Airbnb Laws

Salt Lake City, UT Requires Business Licenses for Short-Term Rentals Starting July 1, 2026

Salt Lake City has permitted short-term rentals in commercial, mixed-use, downtown, and gateway zones for years — but until now, operating one required no business license. That changes on July 1, 2026. The City Council approved the city’s first-ever STR business licensing ordinance as part of its 2026 budget, introducing a formal framework to address housing availability concerns and growing nuisance complaints. STRs remain prohibited in standard residential zoning districts. Use the SLC online zoning map to confirm your property is in an eligible zone before applying.

• More Information: The SLC Planning Division’s STR FAQ is at slc.gov/planning/frequently-asked-questions. The full Salt Lake City Code of Ordinances is at codelibrary.amlegal.com. For zoning eligibility questions, contact the Planning Division at 801-535-7700.
• Definition of Short-Term Rental: Any residential dwelling unit, or portion thereof, offered or used for transient lodging for fewer than 30 consecutive days. ADUs functioning as short-term rental units are not permitted.
• Licensing & Registration: A city business license is required to operate, effective July 1, 2026. Each license is limited to one per owner and is nontransferable. The owner must own the property, and the dwelling must comply with all applicable safety codes. Apply through the Salt Lake City Business Licensing portal or in person at the Permit and Development Center. Licenses must be renewed annually.
  • Density Limits: In multifamily buildings of 10 units or fewer, only one STR license is permitted per building. In buildings with more than 10 units, no more than 10% of units may hold a license. Permits in multifamily buildings are issued first-come, first-served. HOA approval may be required for condominium properties.
• Maximum Rental Nights: A licensed STR may not be rented for more than 200 nights per year.
• Minimum Stay: Guests must stay for a minimum of two consecutive nights. One-night bookings are not permitted.
• Local Contact: A designated contact must be available to respond to nuisance complaints within two hours.
• Safety Requirements: Licensed units must have a functioning carbon monoxide detection system in addition to all other applicable building and fire safety codes.
• Noise, Waste & Nuisance: Licensees must comply with all city noise, waste, and nuisance regulations as a condition of licensure.
• Listing Display: The city-issued STR business license number must be displayed on all listings.
• Taxes: STR operators must collect and remit Salt Lake City’s transient room tax and register with the Utah State Tax Commission for state sales tax obligations. Contact the SLC Finance Department for local tax registration and remittance instructions.
• Enforcement & Penalties: Violations can result in suspension or revocation of the license. Operators found out of compliance face weekly fines of up to $1,000.
• Report a Violation: Report STR concerns through the mySLC app or the city’s civil enforcement page.

Salt Lake County, Utah STR Laws

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.

Verify Your Short-Term Vacation Rental Insurance Today

While some municipalities may not require insurance to operate a short-term rental, having a comprehensive policy protects you and your property. Proper Insurance is the nation’s leading short-term rental insurance provider, protecting homes in all 50 states, replacing inadequate Homeowners/Landlord policies. Their comprehensive coverage meets or exceeds standard short-term rental requirements with $1M Commercial Liability (CGL) and unmatched protection for your property and revenue. Additional custom coverages include guest-caused theft/damage, amenity liability (bikes, kayaks, hot tub, etc.), bed bugs, fleas, squatters, and more.

Please note: The information provided is intended as a guide and may not be comprehensive or up to date. Regulations may change and could vary by area or situation. Always consult local authorities or a legal professional to ensure you have the most accurate information for your short-term rental property.