Orem City Council reviews short term rental fines and enforcement fee options

During the recent Orem City Council meeting held on August 26, 2025, discussions centered around proposed regulations for short-term rentals, highlighting the need for more effective enforcement measures and potential revenue sources for the city.

A key focus was on the financial penalties associated with violations of the proposed short-term rental ordinance. Council members expressed concerns that the current fines—ranging from $500 for the first offense to $1,000 for subsequent violations—may not be sufficient to deter property owners from operating without proper licenses. One council member suggested that fines should be scaled based on the size of the rental property to ensure they are commensurate with the potential revenue generated by these rentals. This approach aims to create a more effective deterrent for those who might otherwise view fines as a minor cost of doing business.

The council also discussed the potential for a transient room tax, similar to those levied on hotels, to generate additional revenue for the city. While there was interest in exploring this option, members noted that any increase in such taxes would likely benefit the county rather than directly funding city initiatives. The conversation highlighted the ongoing challenge of balancing the interests of short-term rental operators with the need for city revenue and community welfare.

Another significant point of discussion was the enforcement of occupancy limits to prevent properties from being used as student rentals. The proposed ordinance caps rentals at 30 nights per month for the same tenant, but concerns were raised about potential loopholes that savvy renters could exploit. The council acknowledged that while they are working to address these issues, a comprehensive solution has yet to be fully developed.

In conclusion, the Orem City Council is actively seeking to refine its approach to short-term rentals, focusing on establishing effective penalties and exploring new revenue streams. As these discussions continue, the council aims to strike a balance that supports local businesses while ensuring the community's needs and safety are prioritized. The outcomes of these deliberations will play a crucial role in shaping the future of short-term rentals in Orem.