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

If you live in Orem 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. Orem has 6 specific rules on the books covering different aspects of short-term rentals, and some of them might surprise you.

Insurance Requirements

Orem City Code Chapter 22 does not establish a short-term rental insurance requirement because the 2002 zoning amendment prohibits transient lodging under 30 days in residential districts, so the city has not codified a liability minimum, certificate-of-insurance filing, or homeowner-policy endorsement rule for STR operators. Utah Code does not impose a statewide STR insurance mandate either; HB 217 (2024) limits cities' ability to ban STRs solely on advertising but leaves insurance as a local choice not yet exercised by Orem.

Key details: Zoning Code: Orem City Code Ch. 22. STR Insurance Rule: None codified. Residential STRs: Prohibited (2002 amendment). State Framework: Utah Code 10-8-85.4 / HB 217 (2024). Contact: Development Services 801-229-7058.

Operating a short-term rental in an Orem residential zone is itself a zoning violation under the 2002 Chapter 22 amendment, regardless of insurance coverage. Code Enforcement may issue cease-and-desist notices and refer matters for civil penalties or injunctive relief under Utah Code § 10-9a-803. Hosts whose homeowner policies exclude commercial rental activity may also face denied claims after a guest incident, independent of any city ordinance.

This is not one of those rules that cities tend to ignore. Orem actively enforces its insurance requirements requirements.

Occupancy Limits

Orem City Code 22-6-2(F) restricts a single-family dwelling to occupancy 'by one single family,' and the 22-2-1 definition of 'family' counts only guests who stay under 30 days and pay no rent, which effectively bars paid nightly rentals rather than setting a head-count cap. Utah's STR definition (UCA 10-8-85.4(1)(e)) is any unit offered 'for occupancy for fewer than 30 consecutive days.'

Key details: Occupancy rule: Single-family dwelling occupied 'by one single family' only (Orem 22-6-2(F)). Guest definition: Stay under 30 days, pay no rent, not a legal address (Orem 22-2-1). State STR definition: Occupancy for fewer than 30 consecutive days (UCA 10-8-85.4(1)(e)). Code Section: Orem City Code 22-2-1, 22-6-2(F).

Occupying a residential dwelling with paying nightly guests beyond the limits of the 'family' definition is a zoning violation under Orem City Code 22-6-2(F), enforced by the Neighborhood Improvement Team with penalties under Orem City Code 1-1-7.

Compared to other cities, Orem takes a harder line on occupancy limits. The enforcement and penalty structure reflects that.

Taxes & Fees

STR operators in Orem must collect Utah state sales tax (4.85%), Utah County Transient Room Tax (6%), and applicable local taxes. Platforms like Airbnb may auto-collect, but hosts remain responsible for compliance.

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.

Parking Rules

STR properties in Orem must have designated off-street parking for guests. Street parking is limited to 72 hours per vehicle. HOAs often impose stricter parking rules. Planned development zones may have enclosed RV storage requirements.

Key details: Street Limit: 72 consecutive hours per vehicle. Parking Plan: May be required for STR license. RV/Trailer Street: 72-hour maximum (§19-3-5). Topic: Parking Rules.

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

The rules around parking rules in Orem lean permissive, but that does not mean anything goes.

Permit Requirements

Orem does not license short-term (under-30-day) rentals in residential zones: the zoning code limits dwellings to occupancy by a single 'family' and defines a permitted guest as someone staying fewer than 30 days who pays no rent, so a paid nightly rental is not an allowed use. Utah Code 10-8-85.4(4) lets a city require a business license before any short-term rental operates.

Key details: STR permit available?: No STR permit category as of June 2026; nightly rental not a permitted residential use. State authority: City may require a business license/permit before STR operates (UCA 10-8-85.4(4)). Long-term rentals: Rental Dwelling License $55/yr for stays of one month or longer (Orem Ch. 12; UCA 10-8-85.5). Code Section: Orem City Code 22-2-1, 22-6-2(F); Utah Code 10-8-85.4.

Operating an unpermitted nightly rental in a residential zone is a zoning violation enforced by Orem's Neighborhood Improvement Team and Justice Court; penalties are set by Orem City Code 1-1-7 (general penalty) and the city may seek abatement of the unpermitted use.

This is not one of those rules that cities tend to ignore. Orem actively enforces its permit requirements requirements.

Noise Rules

STR guests in Orem must comply with the city's noise ordinance. Quiet hours are 10:30 PM to 7 AM. Noise plainly audible at 30 feet from residences during quiet hours is prohibited. Hosts are responsible for guest compliance.

Key details: Quiet Hours: 10:30 PM–7 AM. Standard: Plainly audible at 30 feet. Host Liability: Yes, for guest violations. Topic: Noise Rules.

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

The Bottom Line

Orem is tougher than many cities when it comes to short-term rentals. Out of the 6 rules covered here, 3 are rated strict. If you are a homeowner, renter, or business owner in Orem, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

This guide is based on Orem's current municipal code. Local rules can and do change, so check the individual ordinance pages for the latest details, penalties, and FAQs.