Draper, Utah market researchDraper, Utah Short-Term Rental Investment Review
Town reviewParcel-specific zoning
STR proposalNovember 2026 vote
State lodging tax9% in 2026
State licenseVacation-rental exemption
DecisionDraper Short-Term Rental Investment Decision
- Confirm the property is inside Draper City and obtain written parcel, zoning, dwelling, and short-term-rental eligibility guidance before underwriting income.
- Underwrite the exact property rather than unsupported market-wide revenue, occupancy, nightly-rate, or return forecasts.
- Treat the City business license, annual short-term rental permit, tax accounts, parking plan, safety work, and operations as separate diligence tracks.
- Use verified comparable rentals, tax records, insurance quotes, lawful availability, and complete expense assumptions before making an offer.
Jurisdiction, Zoning, and Lawful Rental Use
- Draper spans Salt Lake and Utah counties; confirm City limits, parcel jurisdiction, zoning district, lawful dwelling status, and approved sleeping areas.
- Draper permits short-term rentals in zoning districts that allow residential uses, but operation requires both a City business license and short-term rental permit.
- An Internal Accessory Dwelling Unit is not eligible; a permitted Detached Accessory Dwelling Unit may qualify, but it counts with the main dwelling as one unit.
- Obtain address-specific written guidance before advertising, accepting bookings, or relying on rental income.
Business License and Annual STR Permit
- Apply through Draper’s Planning Services Portal for both required approvals before operating.
- The short-term rental permit is valid for one year and must be renewed annually; confirm current forms, fees, inspections, and renewal timing.
- Include both the business-license number and short-term-rental permit number in every online listing or advertisement.
- Keep approvals current; each day of unpermitted operation is a separate City Code violation.
Occupancy, Safety, and Guest Protection
- The permit states maximum occupancy based on qualifying bedrooms or sleeping areas; advertise and enforce only that approved limit.
- Equip the unit with the required rated fire extinguisher, interconnected smoke alarms, and carbon-monoxide alarms where fuel-fired appliances are present.
- If the home has a fire-sprinkler system, arrange the required annual inspection and retain the record.
- Post the permit, business license, host contact, applicable rules, and Good Neighbor Guidelines inside, plus the permitted contact sign at the main entrance.
Parking, Minimum Stay, and Local Response
- Require at least two consecutive nights and keep every stay under 30 consecutive days to fit Draper’s short-term-rental definition.
- Provide two off-street spaces, plus one-half space for every bedroom beyond two rounded up, subject to the City’s detailed parking rules.
- Keep the host or designated responder available by phone 24 hours during stays and able to respond in person within 30 minutes to a legitimate complaint.
- Rent to one renter age 21 or older and that renter’s party at a time; do not split the dwelling among simultaneous groups.
Utah and Address-Specific Lodging Taxes
- Register for Utah sales and transient-room tax accounts that apply to the operation and confirm filing frequency with the Utah State Tax Commission.
- Because Draper lies in two counties, use the official Utah rate lookup and the property address to confirm the current combined state, local, county, and tourism-related rates.
- Verify which taxable charges and stay lengths are covered, and obtain written guidance before claiming an exemption.
- Review each platform’s current collection and remittance terms, then file direct-booking taxes and any amounts the platform does not handle.
- Recheck rates and account status before launch and whenever the address, booking channel, or law changes.
Advertising, Platforms, and Direct Bookings
- Display both required City approval numbers and accurate occupancy, bedrooms, parking, fees, accessibility, and house rules in every listing.
- Review each platform’s tax-remittance, insurance, refund, identity, and record terms instead of assuming complete coverage.
- Use written rental terms, emergency contacts, minimum-stay controls, renter-age verification, cancellation rules, and payment records for direct bookings.
- Notify the property insurer and obtain written confirmation that short-term rental use and guest-caused losses are covered.
Enforcement, Complaints, and Private Restrictions
- Operating without a permit violates City Code, and each day is a separate offense; repeated violations can escalate enforcement.
- The City may deny or revoke a permit for false information, noncompliance, refused inspections, tax delinquency, repeated citations, or a nuisance finding.
- If guests violate City law twice during one stay, the host must evict them under the City’s published requirements.
- Review deeds, association rules, leases, lender terms, and insurance policies because private restrictions can be stricter than City approval.
Official Contacts and Property-Level Underwriting
- Draper Planning Office: confirm short-term-rental eligibility, permit steps, occupancy, parking, posting, inspections, and advertising requirements.
- Draper Business Licensing and Code Compliance: confirm licensing, renewals, current fees, complaints, and enforcement status.
- Utah State Tax Commission: confirm registration, address-specific rates, taxable charges, marketplace treatment, returns, and remittance.
- Use assessor records, permit history, title documents, insurance quotes, utilities, association budgets, and verified comparable rentals to build the property model.
Acquisition and Launch Checklist
- Map the parcel; confirm City and county jurisdiction, zoning, lawful dwelling status, sleeping areas, parking, and private restrictions in writing.
- Complete the Draper business license, annual short-term rental permit, Utah registrations, and address-specific tax setup that apply.
- Finish required safety equipment, inspections, 30-minute response coverage, posting, listing disclosures, and guest rules before accepting stays.
- Budget mortgage, taxes, insurance, utilities, cleaning, maintenance, supplies, platform fees, vacancy, snow, wildfire exposure, and professional management.
- Launch only after approvals, contracts, tax procedures, records, and local-response coverage are complete.
Plan a Draper purchase from verified City permits, lawful capacity, tax accounts, safety duties, and property-specific operating costs.
Plan a Draper Property StrategyDraper uses two distinct pathways for stays of fewer than 30 consecutive days. An entire dwelling needs a City short-term rental license and must satisfy coastal or commercial location rules. Hosted home sharing has separate residency, dwelling-type, occupancy, safety, and permit requirements.
Treat the property, operating model, and tax workflow as separate diligence tracks. Verify the parcel in City GIS, ask Planning whether the proposed use or alterations trigger review, complete the City's business-registry process when applicable, and confirm building and fire requirements before accepting bookings.
