Orem, UT Accessory Structures: ADU Rental Restrictions (2026)

Orem City Code Section 22-6-9(I)(9) subjects every accessory apartment to the rental dwelling license requirements of Article 12-9. Under Section 12-9-3, it is unlawful to keep, conduct or maintain a rental dwelling, including a home with an accessory apartment, without a valid rental dwelling license; a license is not required only where the dwelling is 'owner occupied' under Section 22-6-9(I)(1) and the owner rents solely to close relatives (spouse, parent, child, grandparent, grandchild, sibling, aunt, uncle, niece, nephew or great-grandparent/child). Because an accessory apartment by definition sits in an owner-occupied home, this family exception excuses the license only when the renter is a qualifying relative; renting to anyone else still requires the license.

Section 12-9-6 gives accessory apartments a specific fee break not available to ordinary rentals: the owner of a house with a legal ADU pays the rental dwelling license fee only with the initial application and is not required to pay it annually thereafter. That break does not transfer with the property. If a house with a legal ADU is sold, the new owner must apply for a new license and pay the initial application fee again before renting the apartment. A license applicant must also show the rental dwelling complies with all applicable zoning ordinances, and the license itself is non-transferable under Section 12-9-9, requiring 30 days' written notice to the business license official whenever ownership or control changes. Denial, suspension or revocation of the license can be appealed to the administrative law judge appointed under Article 11-3.