Is Holladay, Utah Good for Airbnb Investment?

To start an Airbnb in Holladay, Utah, begin by researching local regulations as Holladay requires short-term rental permits and compliance with zoning ordinances that typically limit rentals to owner-occupied properties or specific residential zones. Contact Holladay City Hall at 4580 South 2300 East to obtain the necessary business license (approximately $50-100) and short-term rental permit (estimated $200-300 annually), ensuring your property meets safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers. Find a suitable property in approved residential zones, considering Holladay's median home prices around $600,000-800,000 as of 2023, or consider renting a property with landlord permission for subleasing. Furnish the space with quality furniture, linens, kitchen essentials, and local amenities guides, budgeting $5,000-15,000 for a complete setup depending on property size. Create compelling listings on Airbnb, VRBO, and Booking.com with professional photography highlighting Holladay's proximity to ski resorts like Alta and Snowbird (15-20 minutes), downtown Salt Lake City access, and nearby hiking trails. Implement management systems including automated messaging, professional cleaning services (typically $75-150 per turnover in the Salt Lake area), dynamic pricing tools, and maintain compliance with Utah's 10.75% combined state and local tax requirements while keeping detailed records for tax purposes and potential city inspections.

To identify profitable short-term rental properties in Holladay, Utah, focus on locations within walking distance of ski resorts like Brighton and Solitude (20-30 minutes away) or near Cottonwood Heights recreational areas, as these drive year-round demand from outdoor enthusiasts. Target 3-4 bedroom single-family homes or condos built after 1990 with mountain views, updated kitchens, hot tubs, and parking for multiple vehicles, as these features command premium rates of $200-400 per night during ski season and $150-250 in summer. Analyze comparable properties using AirDNA and Mashvisor to identify areas with 70%+ occupancy rates and average daily rates above $180, while researching competition density through Airbnb and VRBO searches to find neighborhoods with fewer than 10 active listings within a 2-mile radius. Utilize HostGPO for market analysis, STR Helper for regulatory compliance with Salt Lake County's short-term rental ordinances, and partner with local property management companies like RedAwning or Vacasa who understand Holladay's seasonal demand patterns. Properties near Big Cottonwood Canyon Road or close to Fashion Place Mall typically perform well due to proximity to both recreation and amenities, with successful investors targeting homes priced between $500,000-800,000 that can generate 15-25% annual returns when properly managed and marketed to ski tourists and summer hikers.

To obtain an Airbnb/STR permit in Holladay, Utah, you must first contact the Holladay City Planning Department at City Hall located at 4580 South 2300 East, as the city requires a Conditional Use Permit for short-term rentals in residential zones. Submit an application including a completed CUP form, site plan showing parking and property layout, proof of property ownership or authorization letter, Utah business license, liability insurance certificate (minimum $1 million), and a detailed operating plan addressing noise control, guest management, and neighborhood compatibility. Required documents also include a floor plan, emergency contact information for 24/7 availability, and written consent from HOA if applicable. The application fee is approximately $500-800 plus additional fees for public notices and potential hearings. The process typically takes 60-90 days and includes a public hearing before the Planning Commission, neighbor notification requirements within 300 feet of the property, and compliance with specific Holladay requirements such as maximum occupancy limits based on bedrooms plus two additional guests, designated parking spaces (typically two minimum), no events or parties, quiet hours from 10 PM to 8 AM, and regular property maintenance standards. Once approved, you must also register with Salt Lake County for transient room tax collection and maintain current business licensing, with annual renewals required and potential inspections to ensure ongoing compliance with city ordinances and safety standards.

Short-term rentals (STRs) are generally legal in Holladay, Utah, but are subject to specific municipal regulations and zoning restrictions. As of recent years, Holladay has implemented ordinances that typically require STR operators to obtain business licenses and comply with safety standards, parking requirements, and occupancy limits. The city generally restricts or prohibits STRs in certain residential zones to preserve neighborhood character, particularly in areas zoned for single-family residential use. Property owners must usually register their rentals, maintain liability insurance, and ensure compliance with fire safety codes and building standards. Recent legal changes in Utah municipalities, including Holladay, have focused on balancing property rights with neighborhood concerns, often resulting in stricter oversight and enforcement mechanisms. Violations can result in fines and permit revocation, and the city typically requires that a responsible party be available 24/7 for any issues that arise with guests.

The best areas for Airbnb investment in Holladay, Utah include the neighborhoods near Big Cottonwood Canyon and Little Cottonwood Canyon access points, particularly around 6200 South and Highland Drive, which attract year-round visitors heading to world-class ski resorts like Alta, Snowbird, Brighton, and Solitude during winter months and hikers, climbers, and outdoor enthusiasts during summer seasons. The Cottonwood Heights border area along Wasatch Boulevard offers premium locations with mountain views that appeal to luxury travelers and corporate executives visiting nearby tech companies in the Silicon Slopes corridor, including major employers like Adobe, Qualtrics, and Vivint which relocated significant operations to the area between 2018-2023. The Murray-Holladay area near Fashion Place Mall and the TRAX light rail stations provides excellent connectivity for business travelers accessing downtown Salt Lake City, the airport, and University of Utah, while the neighborhoods around Olympus Cove and Mount Olympus trailheads attract adventure tourism and provide easy access to popular hiking destinations, making these areas particularly attractive for short-term rentals targeting the growing outdoor recreation market that generates over $7 billion annually for Utah's economy.

Airbnb properties in Holladay, Utah are subject to multiple lodging taxes including Utah's state transient room tax of 4.25% and Salt Lake County's transient room tax of approximately 1-2%. The City of Holladay may impose an additional local lodging tax of around 1-3%, bringing the total occupancy tax rate to approximately 6-9% of the nightly rental rate. These taxes are typically collected automatically by Airbnb through their platform and remitted directly to the appropriate tax authorities on behalf of hosts, though some hosts may need to register separately with Utah State Tax Commission and Salt Lake County for direct remittance. Properties rented for 30 days or longer are generally exempt from transient occupancy taxes, and some jurisdictions may provide exemptions for stays by government employees or certain non-profit organizations. Hosts should verify their specific tax obligations with the Utah State Tax Commission, Salt Lake County, and Holladay city offices, as collection and remittance procedures can vary and local ordinances may have changed since 2023.

Starting an Airbnb in Holladay, Utah requires approximately $650,000-$750,000 in total initial investment. Property purchase represents the largest expense at $600,000-$700,000 based on median home prices in this Salt Lake City suburb as of 2023. Furnishing costs typically range $15,000-$25,000 for a complete setup including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup expenses including professional photography, listing creation, and marketing materials cost around $2,000-$3,000. Permits and fees in Salt Lake County include business license ($100), short-term rental permit ($200-$500), and potential HOA approval fees totaling approximately $800-$1,200. Insurance for short-term rentals runs $2,000-$4,000 annually, with the first year requiring upfront payment. Utilities including electricity, gas, water, internet, and cable average $300-$500 monthly or $1,800-$3,000 for six months. First six months operating costs encompass cleaning services ($150 per turnover), maintenance reserves ($200-$300 monthly), property management software ($50-$100 monthly), and marketing expenses, totaling approximately $4,000-$6,000. Additional considerations include potential property taxes, which in Utah average 0.6% annually, and a recommended cash reserve of $10,000-$15,000 for unexpected expenses and vacancy periods.

Airbnb properties in Holladay, Utah demonstrate strong profitability potential with average nightly rates ranging from $120-180 for typical 2-3 bedroom homes, generating monthly revenues of $3,600-5,400 assuming 70% occupancy rates. Operating expenses typically include mortgage payments ($2,200-3,500), utilities ($200-300), cleaning fees ($40-60 per turnover), property management (10-20% of revenue), insurance ($150-250), and maintenance ($200-400), totaling approximately $3,200-4,800 monthly. This results in net profit margins of 15-25% for well-managed properties, with annual profits ranging from $4,800-14,400. Success factors in Holladay include proximity to ski resorts like Alta and Snowbird (20-30 minutes), downtown Salt Lake City access, and the area's family-friendly suburban appeal. Properties near Big Cottonwood Canyon or with mountain views command premium rates, particularly during ski season (December-March) when nightly rates can exceed $250. A case study of a 3-bedroom home on East Holladay Boulevard showed 2023 revenues of $68,000 against $52,000 in expenses, yielding a 23% profit margin, while a smaller 2-bedroom property generated $45,000 revenue with $38,000 expenses for a 16% margin, demonstrating that location, property size, and seasonal optimization significantly impact profitability in this market.

Airbnb investments in Holladay, Utah typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on the area's proximity to ski resorts like Alta and Snowbird, which drive strong seasonal demand from winter sports enthusiasts and summer outdoor recreation visitors. Properties in Holladay generally achieve profitability within 18-24 months, with average daily rates of $150-250 depending on property size and amenities, occupancy rates averaging 65-75% annually with peak winter months reaching 85-90% occupancy. The market benefits from Salt Lake City's growing tech sector and tourism industry, with companies like Qualtrics and Adobe establishing significant presence in the region since 2018-2020, supporting consistent demand for short-term rentals among business travelers and relocated employees seeking temporary housing.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors in Holladay, Utah. Local real estate agents like those at Coldwell Banker Realty and RE/MAX Associates have extensive knowledge of the Holladay market and can identify properties with strong Airbnb potential near ski resorts and downtown Salt Lake City. AirDNA provides comprehensive market data and analytics for short-term rental investments in the area, while Mashvisor offers property analysis tools specifically for vacation rental investments. Local property management companies such as RedAwning and Vacasa can assist with both property acquisition advice and subsequent management services. National services like Roofstock and BiggerPockets connect investors with Airbnb-suitable properties and provide market insights for the Utah market. Local real estate investment groups and agents at Berkshire Hathaway HomeServices Utah Properties have experience with investment properties in Holladay's competitive market. Additionally, companies like AirBnB Automated and HostGPO provide consulting services to help investors identify and optimize profitable short-term rental properties in high-demand areas like Holladay, which benefits from proximity to world-class skiing and outdoor recreation activities.