New legislation will allow cities like Cottonwood Heights to use online listings to investigate unpermitted STRs—a move welcomed by local governments seeking stronger compliance tools.
Snow-covered mountains near Cottonwood Heights, Utah. Picture: Matthew Montrone
Utah has passed new legislation that gives cities more power to act on illegal short-term rentals (STRs) in an effort to reshape how local governments enforce STR rules. House Bill 256, passed earlier this year, allows cities to use online listings as part of their evidence when investigating potential violations.
The change comes as Cottonwood Heights steps up its own efforts to manage STR growth. Known as the “city between the canyons”, Cottonwood Heights is located near four world-renowned ski resorts and has long struggled to balance tourism with housing affordability.
To date, Cottonwood Heights enforcement officers have not been able to act on platform listings on sites like Airbnb and Vrbo to identify unlicensed STRs. Instead, they have relied on resident complaints and in-person monitoring to identify illegal activity—a process Cottonwood Heights Mayor Mike Weichners described as the city’s “biggest frustration”.
Data from Deckard Technologies’ Rentalscape platform reveals the scale of the issue. According to Rentalscape, around 500 STRs were active in Cottonwood Heights in 2024 — nearly 5% of the city’s total housing stock. Of those properties, just 111 were registered with the city, suggesting around 400 properties were operating without permits.
Utah’s HB256 reforms reflect a growing appetite among cities for stronger enforcement tools and tougher penalties in response to the rise of unpermitted STRs.
Cottonwood Heights City Council voted unanimously in December to increase fines for illegal rentals. The first offence now carries a $650 penalty, with escalating fines for repeat violations and a two-year permit ban after a third strike.
House Bill 256 will come into effect May 7, 2025.
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