Concerns about short-term rentals are growing in Summit County, and the community has mixed opinions about how to respond – causing the County Courthouse to question what can be done to regulate the units.
The Summit County Council on Wednesday was slated to revisit the issue of enforcement, eight months after the panel considered adopting a moratorium on nightly rental licenses as well as making changes to licensing and zoning. The topic was raised in light of a new study indicating a 38% increase in short-term units across Utah – and Summit County tops the list with the highest percentage of nightly rentals, making up around 22% of housing, in the state.
County officials have seen a sharp increase in the number of short-term rental applications, increasing from 699 in 2019 to 916 less than six months into 2022, prompting the County Council to request information about possible regulation and enforcement options. Members discussed a 90-day moratorium, but the idea was rejected after opposition from the Park City Board of Realtors and other public input.
There are no zoning or land use designations specifically targeting nightly rentals in the county code except for a section that requires units to be located “within a zoning or land use designated area as allowing rentals for the period of which the license is applied for,” according to a staff report.
Enforcement options are also limited to revoking an individual’s license or issuing civil fines for things such as noise or parking violations. Annual inspections are not required for license renewal and there are no limits on the number of nightly rental units that are allowed to operate within a neighborhood.
The staff report also stated the county has “insufficient resources to identify and address unlicensed rental units, resulting in a loss of tax revenue and potentially shielding unsafe rental units from any oversight.”
County officials previously estimated there could be thousands of short-term rentals that are not properly licensed.
Staffers propose addressing gaps in regulation by imposing additional licensing requirements and/or zoning restrictions. Possible factors could address whether a unit fits into the character of the neighborhood and may include restricting the number of rentals in certain areas. For example, there could be more short-term rental units permitted in the Canyons Village area compared to more residential neighborhoods.
Other factors, such as whether the roads are paved and maintained, where the neighborhood receives its water and if the area is mainly single-family residences primarily occupied by full-time residents, may also be considered to address health and safety concerns.
However, staffers expect there could be several legal obstacles with any zoning changes, and said existing license holders may argue their current use should be grandfathered in. State law also prohibits local governments from stopping rental operators from listing their properties on websites like Airbnb and VRBO.
The County Council may also decide to create a new department to address housing issues related to short-term rentals, according to the staff report. Employees would track nightly rental business licenses, ensure fees and taxes have been paid and required inspections have been conducted as well as report illegal rentals and code violations.
Staffers cited how other ski communities and tourism-based economies, such as Washington County and Steamboat Springs, Colorado, have responded to nightly rentals. The solutions range from adopting overlay zones and offering different types of short-term rental licenses to creating a “Good Neighbor Policy” and requiring submitted proof that a unit complies with all health and safety standards such as smoke detectors, fire extinguishers and water rights.
The County Council last year recognized the need for regulation, but they, like the community, were divided on how to tackle the problem. The hour-long discussion led by Summit County Attorney Margaret Olson and Lynda Viti, deputy county attorney, is scheduled at 3:55 p.m. on Wednesday in the Richins Building.
The meeting will also be streamed live on Facebook from the Summit County, Utah page. Visit https://zoom.us/j/772302472 to participate in the meeting via Zoom.