Short-Term Rentals in Lehi, UT: What Residents Actually Need to Know

If you live in Lehi or are thinking about moving there, short-term rentals are one of those things you probably won't think about until they affect you directly. Lehi has 6 specific rules on the books covering different aspects of short-term rentals, and some of them might surprise you.

Insurance Requirements

Lehi's published Application for Short Term Rentals does not list a codified liability-insurance minimum or certificate-of-insurance filing as part of the city's STR licensing checklist. Required submittals are an aerial image, site plan, parking plan, building permit or county record of completion, applicant's tax returns showing the property as primary residence, and government-issued ID - insurance is not enumerated. Utah Code Section 10-8-85.4 leaves any STR insurance mandate to local choice.

Key details: City Insurance Rule: Not codified in STR application. Required Submittals: Aerial, site/parking plan, permit, tax returns, ID. State Framework: Utah Code 10-8-85.4. Typical Carrier Range: $500K-$1M (advisory, not required). Contact: Planning Division (385) 201-1030.

Because Lehi has not codified an STR liability-insurance minimum, there is no city citation for under-insurance alone. Operating without a current Lehi business license, exceeding occupancy or parking limits, or violating the quiet-hours condition can still result in license suspension or revocation by the Planning Division, and Utah Code Section 10-9a-803 permits the city to seek injunctive relief and civil penalties for zoning or licensing violations. Hosts whose homeowner policies exclude commercial rental activity may also face denied claims after a guest incident, independent of any city ordinance.

Lehi is more permissive than most cities when it comes to insurance requirements. That said, there are still limits.

Occupancy Limits

Lehi caps short-term rental (STR) occupancy at no more than 10 individuals total, and further limits guests by available off-street parking. The Application for Short Term Rentals (lehi-ut.gov) sets the 10-person ceiling, requires the home to be owner-occupied as a primary residence for the majority of the year, requires off-street parking at a suggested rate of one stall per bedroom, and ties STR conduct to Lehi's noise quiet hours of 10:00 PM to 6:00 AM.

Key details: Max Guests: 10 individuals or parking-limited. Owner Occupancy: Required - primary residence. Parking: 1 stall per bedroom (suggested). School Buffer: 600 ft from elementary/middle/junior. Quiet Hours: 10:00 PM - 6:00 AM.

Operating a short-term rental in Lehi without a valid city business license, exceeding the 10-person occupancy cap, or hosting beyond the parking-based limit violates the conditions on the Lehi STR application and Lehi's business licensing chapter. The Lehi Police Code Enforcement Division and Planning Division can issue notices of violation, suspend or revoke the STR business license, and refer matters for civil enforcement under Utah Code Section 10-9a-803, which authorizes municipal injunctions and civil penalties for zoning and licensing violations.

Noise Rules

STR guests in Lehi must comply with the city's noise ordinance. Quiet hours are 10 PM–7 AM. Nuisance complaints from STR properties can trigger license review.

Key details: Quiet Hours: 10 PM–7 AM. Host Liability: Yes, for guest violations. Enforcement: Police Code Enforcement Division. Topic: Noise Rules.

Noise violation: $100 to $750. Multiple complaints: registration review possible. Host responsible for guest behavior.

Parking Rules

STR properties in Lehi must provide adequate off-street parking. RVs and trailers are prohibited on public streets in residential zones except for loading/unloading (12-hour limit). HOAs in Lehi's many planned communities often impose stricter rules.

Key details: Code: Lehi City Code §7-1-2. RV/Trailer Street: Load/unload only, 12-hour max. HOA Zones: Often stricter. Contact: (385) 201-1035.

Parking plan non-compliance may affect registration renewal. Street parking violations per city code.

Lehi is more permissive than most cities when it comes to parking rules. That said, there are still limits.

Taxes & Fees

STR operators in Lehi must collect Utah state sales tax (4.85%) and Utah County Transient Room Tax (6%). Total STR tax burden is approximately 10–12%. Platforms may auto-collect, but hosts remain responsible.

Key details: State Sales Tax: 4.85%. Utah County TRT: 6%. Total Approx.: ~10–12%. Remittance: Host responsibility.

Non-remittance: penalty + interest. Utah Tax Commission audit. Tax evasion: misdemeanor charges.

Permit Requirements

Lehi requires a separate short-term rental license from ADU permits. STRs (stays under 30 days) require city approval. ADUs may not be rented short-term. Utah state law (HB 217) restricts outright STR bans in residential zones.

Key details: ADU STR: Prohibited (ADUs cannot be STRs). Separate License: Required for STR operations. State Law: HB 217 limits STR bans. Planning Contact: (385) 201-1030.

Operating without registration: $200 to $1,000/day. Safety violations: correction notice and fines.

The Bottom Line

Compared to many U.S. cities, Lehi gives residents more room on short-term rentals. 2 of the 6 rules here are rated permissive. But permissive does not mean unregulated. There are still requirements, and the city does enforce them when violations are reported.

All of the above reflects Lehi's municipal code as of our last review. If you need specifics on fines, exemptions, or filing requirements, the detailed ordinance pages linked above have the full breakdown.