Salt Lake City - Any ideas how to STR?

Question

I am reading that Salt Lake City is a harder city to crack in the STR game... Any ideas on recent strategies / paths to get an STR going up in Salt Lake City. Note, I am looking to do this as non-owner occupied... I live in Colorado but want an STR in Salt Lake City!

Masyn Grant Barney · Answer

@Eric Sato, Sounds like you have a good plan. I love the house hacking model and have done a similar investment where we partnered with some people that would be owner occupying it. It's a great way to take advantage of owner occupant financing while not having to owner occupy it yourself. The one caution I have is around your Debt to Income ratio. If you plan to buy another property in the next 12 months, your DTI will likely be negatively impacted. The reason being is the house is "owner occupied" so you can't count rent against it. But you do have the full mortgage showing up. We were able to keep it off our DTI after 12 months by having the mortgage come out of our partners bank account. I would talk to a lender about it though because it could make getting future properties more difficult. Happy to connect you if you'd like!

Michael Baum · Answer

Hey @Eric Sato, why? Why do you want to do it in a city that has a lot of regs.

https://buildingsaltlake.com/city-bulks-up-its-enforcement-o...

"The City does not currently have regulations or allowances for land 
use known as “short-term rental.” Currently, the City generally 
categorizes short-term rentals, such as Airbnb or Vrbo, as hotel, motel,
 or bed and breakfast uses because the lease period is less than 30 
days. Any use that leases living space for less than 30 days cannot be 
considered a residential dwelling. Hotel, motel, and bed and breakfast 
uses are permitted in multiple zoning districts around the city. Hotel, 
motel, and bed and breakfast uses are generally not permitted in 
residential zoning districts.

Use our Zoning Look-up Tool
 to determine the zoning district for your property and if a hotel, 
motel, or bed and breakfast use is allowed. There may be additional 
zoning or building requirements depending on the number of rooms in the 
unit. An Administrative Interpretation
 is recommended for a building where a short-term rental will be 
located. The administrative interpretation determines in writing that 
you can use your property for a short-term rental. A Business License is required to operate a short-term rental"

That (from the SLC planning site) pretty much says it all. Unless you find a properly zoned property, it is no go.

Just start looking in places that STRs are allowed rather than try and swim upstream.

Troy Copeland · Answer

@Michael Baum I highly recommend starting with properties that are closer to home or even your own. Many hosts encounter challenges because they are not readily available. This month, I added two new properties for this very reason: being local allows me to respond quickly if needed.Being prepared for any situation fosters trust with property owners. If you find success in this approach, consider expanding to other areas. You'll likely have questions about local recommendations and events, which can be great opportunities to partner with nearby businesses.These partnerships can enhance promotions, generate referrals, and ultimately add value for your guests. Remember to under-promise and over-deliver. While this is real estate, it’s fundamentally a hospitality business, and that’s what makes it thrive.

Jesse Turner · Answer

@Eric Sato My experience in that area suggests that Mid-term rentals (travelling nurses) may be the next best option. You'll want to have a lease agreement in place, which makes it different than STR, but you should be able to get 3-6 month rental agreements in place.

Collin Hays · Answer

I love SLC!  I agree with Sarah - find something that is in SLC metro but its own town - Provo, Draper, etc.  Isn't Park City basically in SLC's backyard?  Good luck!

Katie Holmes · Answer

Hi Eric! I used to live in Denver (and still have an Airbnb in Westminster) so was excited to see you're from Colorado! I'm now an agent/investor in here Utah and keep a pulse on all the properties in SLC that are zoned properly. I actually have a few that I'm tracking now. I also love your multi-family idea. If you want the best of both worlds, I recently came across a triplex in a super desirable area that's also zoned for Airbnb. Reach out if you're interested! Thanks!

Troy Copeland · Answer

I think I was responding as you were the initial person making the post.  Otherwise, I'm not sure either.. best of luck

Michael Baum · Answer

Ummm @Troy Copeland, Ok. Well I only do STRs in vacation areas...

Not sure why you mentioned me in this post. I don't do real estate locally.

Garrett Brown · Answer

@Troy Copeland I love this because I preach finding your first 1-3 investments as close as possible to you in a good market. Until you have a bigger team, most things will fall on you to solve (even if you hire someone, it still takes logistics on your part).

Garrett Brown · Answer

Hey Eric! Welcome to the Forums!

I don't invest in that area, but I have also heard it is hard to find a space that is zoned properly while hitting the metrics STR investors may want. I would work with a trusted, investor-friendly real estate agent who may be able to help identify which areas this could potentially be (as far as zoning). Ask them about their experience with STRs and if they own any themselves.

I have crunched many numbers on Provo recently, and it has some good metrics that you may want to look into on the STR side. I don't think your fourplex idea is bad at all if you are struggling to find any potential investments on the STR side there.

Salt Lake City - Any ideas how to STR?

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