Orem, UT Rental Property Rules: Rental Registration (2026)
Key Facts
- License required
- Every rental dwelling in Orem
- Coverage
- One license covers all units owner holds
- Amendment deadline
- 30 days to add new units
- ADU fee
- One-time, not paid annually
- Senior exemption
- Age 65+, owner-occupied, no fee
- Transfer notice
- 30 days written notice required
- Violation class
- Infraction plus nuisance enforcement
Summary
Every rental dwelling in Orem needs a valid rental dwelling license under Orem City Code 12-9-3 before an owner, lessee or agent may keep, operate or maintain it. One license covers all rental units a single owner holds citywide. Owner-occupied homes renting only to close relatives, and units already licensed as a hotel or group home, are exempt.
12-9-3. Rental Dwelling License Required. It is unlawful for any person, as owner, lessee, or agent thereof to keep, conduct, operate or maintain a rental dwelling within the City of Orem, or cause or permit the same to be done, without a valid rental dwelling license. An owner of multiple rental dwellings or multiple buildings containing rental dwellings is not required to obtain more than one rental dwelling license for the operation and maintenance of such rental dwellings. Notwithstanding the foregoing, a rental dwelling license shall not be required for a rental dwelling that has an existing business license under a different category (such as a business license to operate a hotel or group home). A rental dwelling license shall also not be required where a dwelling is "owner occupied" as defined in Section 22-6-9(I)(1) and the owner rents only to one or more persons who are all related to the owner as a spouse, parent, child, grandparent, grandchild, brother, sister, uncle, aunt, nephew, niece, great-grandparent or great-grandchild.
Full Breakdown
The license is required under Article 12-9 for anyone operating a rental dwelling, defined as a building or unit rented or offered for rent for one month or longer (12-9-2). An owner with multiple rental dwellings or buildings needs only one citywide license, but the application (12-9-4) must list every rental address the applicant owns or manages in Orem, the owner's and manager's contact information, and, for an out-of-state owner, a Utah-based agent authorized to accept service of process. Owners must certify the property complies with applicable ordinances and agree to comply going forward.
Any owner who acquires additional rental dwellings after licensing has 30 days to amend the license to add them (12-9-5). The fee is set by City Council resolution and is due annually by the license's expiration date; a house with a legal Accessory Dwelling Unit pays the fee only once at initial application, not annually, though a new owner of that house must apply and pay again (12-9-6). Owners age 65 or older who own and occupy a simple family dwelling meeting Section 22-6-8(F)(I) are exempt from the fee but still must obtain the license and follow every other requirement.
A license issues only if all listed rental dwellings meet zoning requirements and all fees, including late fees, are paid (12-9-7). The license is not transferable; a seller must notify the business license official in writing within 30 days of transferring the property, and the new owner must obtain its own license (12-9-9).
Violations & Fines
Operating an unlicensed rental dwelling is unlawful under 12-9-3. A license can be denied, suspended or revoked under 12-9-10 for unpaid fees, a bounced payment, false or incomplete application information, or nonpayment of administrative fines tied to nuisance citations under Article 11-1. Denial, suspension or revocation may be appealed to the administrative law judge under Article 11-3. Any violation of Article 12-9 is an infraction and can also trigger enforcement under Orem's Administrative Nuisance Enforcement ordinance (12-9-12).
Frequently Asked Questions
Do I need a rental dwelling license to rent out a room in my own home in Orem?
How much does an Orem rental dwelling license cost?
What happens if I buy a rental property that already has a license?
Can Orem deny or revoke my rental dwelling license?
Sources & Official References
Other rules in Orem
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Rental Registration in Nearby Cities
How other cities in Utah County handle rental registration.