Is Lehi, Utah Good for Airbnb Investment?

To start an Airbnb in Lehi, Utah, begin by researching local regulations as Lehi requires short-term rental operators to obtain a business license and conditional use permit from the city's Community Development Department, with properties needing to be owner-occupied or have an on-site property manager within 5 miles. Contact Lehi City Hall at 153 North 100 East to apply for the necessary permits, which typically cost around $200-400 annually and require proof of insurance, parking plans, and neighbor notification. Find a suitable property in residential zones that allow short-term rentals, focusing on areas near tech companies like Adobe, Microsoft, and Xactware since Lehi is part of Silicon Slopes, or near Thanksgiving Point for tourist appeal. Furnish the property with quality basics including Wi-Fi, kitchen essentials, linens, and local guidebooks highlighting nearby attractions like Thanksgiving Point Gardens and Lehi Legacy Center. Create your Airbnb listing with professional photos, competitive pricing around $80-150 per night based on local market rates, and emphasize proximity to tech companies and Salt Lake City (25 minutes away). For management, establish check-in procedures, maintain Utah state tax compliance including collecting 7.75% sales tax, respond quickly to guests, and consider hiring local cleaning services like those found through Lehi Facebook community groups, while ensuring compliance with HOA rules if applicable and maintaining the owner-occupancy requirement or designated local manager as mandated by Lehi municipal code.

To identify profitable short-term rental properties in Lehi, Utah, focus on locations within 15-20 minutes of major tech companies like Adobe, Microsoft, and Xactware in the Silicon Slopes corridor, near Thanksgiving Point attractions, or close to outdoor recreation access points for nearby canyons and Utah Lake. Target 3-4 bedroom single-family homes or townhomes built after 2000 with modern amenities, dedicated workspace areas for business travelers, parking for 2+ vehicles, and outdoor spaces like patios or decks that appeal to both corporate visitors and families. Conduct pricing analysis using AirDNA and Mashvisor to benchmark nightly rates between $150-300 depending on size and location, aiming for properties that can achieve 65%+ occupancy rates and 12%+ annual returns. Research competition by analyzing existing Airbnb and VRBO listings within a 3-mile radius, identifying gaps in amenities or underserved areas, and monitoring seasonal demand patterns driven by tech conferences, Thanksgiving Point events, and summer recreation activities. Utilize tools like Rabbu for Utah-specific market data, connect with local property management companies familiar with Lehi's STR regulations, and leverage relationships with real estate agents specializing in investment properties in the Silicon Slopes area to identify off-market opportunities before they hit major listing platforms.

To obtain an Airbnb/STR permit in Lehi, Utah, you must first contact the Lehi City Planning Department at 153 North 100 East or call (801) 768-7100 to begin the conditional use permit application process, as short-term rentals require special approval in residential zones. Submit a completed conditional use permit application along with a site plan showing parking arrangements, floor plans of the rental unit, proof of property ownership or authorization letter from owner, a $500 application fee, and a detailed operational plan describing guest management and noise control measures. Additionally, provide proof of liability insurance (minimum $1 million), contact information for a local property manager if you live more than 60 minutes away, and neighbor notification forms signed by adjacent property owners. The city requires STRs to have adequate off-street parking (typically 2 spaces minimum), comply with occupancy limits based on bedrooms plus two additional guests, maintain quiet hours from 10 PM to 8 AM, and display the permit number in all advertising. After submitting your complete application, the planning staff will review it within 2-3 weeks, schedule a public hearing before the Planning Commission (typically 4-6 weeks from application), and if approved, issue the permit within one week of approval. The entire process usually takes 6-8 weeks and costs approximately $500-700 including application fees, with annual renewal required at $200 per year, and you must also obtain a Lehi business license for an additional $50 annually.

Short-term rentals (STRs) are legal in Lehi, Utah, but operate under specific municipal regulations that require property owners to obtain a conditional use permit and business license before operating. The city allows STRs in residential zones but requires compliance with parking requirements (typically 2 spaces per unit), occupancy limits based on bedroom count, and noise ordinances. Properties must be owner-occupied or have a local property manager within 30 minutes of the rental, and operators must maintain a guest registry and provide contact information to neighbors. Lehi prohibits STRs in certain residential areas where homeowner associations have specific restrictions, and the city has implemented stricter enforcement measures since 2019-2020 following neighbor complaints about parking and noise issues. Recent changes include enhanced permit requirements and increased penalties for non-compliance, with the city conducting regular inspections to ensure operators meet safety and zoning standards.

The most promising Airbnb investment areas in Lehi, Utah include the Traverse Mountain neighborhood, which offers luxury homes with mountain views and proximity to major tech companies like Adobe and Microsoft, attracting high-paying business travelers and executives visiting Silicon Slopes. The Thanksgiving Point area is highly attractive due to its proximity to the Museum of Ancient Life, Ashton Gardens, and the Megaplex theater complex, drawing families and tourists year-round for events, weddings, and educational visits. The Jordan River Parkway district provides scenic waterfront access and outdoor recreation opportunities, appealing to adventure tourists and nature enthusiasts visiting for hiking, biking, and water activities. Downtown Lehi near the historic Main Street offers charm and walkability while maintaining close access to major employers like Xactware and IM Flash Technologies, making it ideal for both business travelers and tourists exploring Utah's tech corridor. The area near Lehi Station and the FrontRunner train line is particularly valuable for investors as it provides easy transit access to Salt Lake City and Provo, attracting visitors who want suburban comfort with urban accessibility for conferences, events, and business meetings throughout the Wasatch Front.

In Lehi, Utah, Airbnb hosts are subject to multiple lodging taxes including Utah's state transient room tax of 4.25%, Salt Lake County's transient room tax of approximately 1%, and Lehi city's transient room tax of around 1-2%, totaling roughly 6.25-7.25% in combined lodging taxes. These taxes apply to short-term rentals under 30 days and are typically collected from guests at the time of booking through Airbnb's automatic tax collection system, which remits payments directly to the Utah State Tax Commission on a monthly basis for state taxes, while local county and city taxes may require separate registration and remittance by hosts depending on local agreements with Airbnb. Hosts must register for a Utah sales tax license and may need separate permits from Salt Lake County and Lehi city, with remittance typically due monthly by the 20th of the following month, and exemptions generally apply only to stays exceeding 30 consecutive days or rentals to permanent residents, though specific exemptions for government employees, certain non-profit organizations, or medical patients may apply under Utah state law.

Starting an Airbnb in Lehi, Utah requires approximately $520,000-$580,000 in total initial investment. Property purchase costs around $450,000-$500,000 based on median home prices in Lehi as of 2023-2024. Furnishing a 3-bedroom property typically costs $15,000-$25,000 including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup expenses including professional photography, listing creation, and basic marketing materials run $1,500-$3,000. Permits and fees vary but generally include business license ($100-$300), short-term rental permit ($200-$500), and potential HOA approval fees totaling $500-$1,200. Insurance for short-term rentals costs approximately $2,000-$3,500 annually, with the first year paid upfront. Utility setup and deposits for electricity, gas, water, internet, and cable services require $1,000-$2,000 initially. First six months of operating costs including utilities ($200-$300/month), cleaning services ($100-$150 per turnover), maintenance reserves ($200-$400/month), platform fees (3% of bookings), and property management software subscriptions total approximately $8,000-$12,000, assuming moderate occupancy rates during the initial period.

Airbnb properties in Lehi, Utah demonstrate strong profitability potential with average nightly rates ranging from $85-150 depending on property size and amenities, generating monthly revenues of $2,500-4,500 for well-managed properties with 60-70% occupancy rates. Operating expenses typically include 25-30% for Airbnb fees and payment processing, $200-400 monthly for cleaning services, $150-300 for utilities, $100-200 for supplies and maintenance, and property management fees of 10-20% if outsourced, resulting in total operating costs of approximately 45-55% of gross revenue. Successful properties in Lehi's tech corridor near companies like Adobe and Qualtrics achieve profit margins of 35-45%, with annual net profits ranging from $15,000-35,000 per property. Key success factors include proximity to Silicon Slopes tech companies, modern furnishings, reliable WiFi for business travelers, and competitive pricing during peak seasons like Sundance Film Festival and tech conferences. Properties within 10 miles of major employers and offering amenities like hot tubs or mountain views command premium rates, while those targeting the growing population of tech workers and outdoor enthusiasts visiting nearby recreational areas see consistently high booking rates throughout 2023-2024.

Airbnb investments in Lehi, Utah typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15%, driven by the city's proximity to major tech companies like Adobe, Microsoft, and Xactware in Silicon Slopes. Properties in Lehi generally reach profitability within 18-24 months, with average daily rates of $120-180 depending on property size and amenities. The market benefits from consistent demand from business travelers and tech workers, with occupancy rates averaging 65-75% annually. Investment properties in desirable neighborhoods near Thanksgiving Point or close to major employers can achieve the higher end of ROI ranges, while properties requiring significant renovations may see initial returns closer to 8-12% in the first year before stabilizing at higher rates by year two.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Lehi, Utah, using data analytics and market insights. Local real estate agents specializing in Airbnb investments in Lehi include Summit Sotheby's International Realty agents who focus on investment properties, Coldwell Banker Realty agents with vacation rental expertise, and KW South Valley agents experienced in short-term rental markets. National services include Mashvisor (2014), which provides Airbnb profitability analysis for Utah markets, AirDNA (2015) offering short-term rental data and market insights, Awning (2017) providing full-service Airbnb investment management, Roofstock (2015) with short-term rental investment opportunities, and BiggerPockets (2004) connecting investors with Utah-based professionals. Local Utah companies include Utah Investment Properties specializing in vacation rentals, Wasatch Property Management offering Airbnb management services, and Mountain West Real Estate focusing on investment properties in ski-adjacent markets like those near Lehi. Additional national platforms include Rabbu (2019) for Airbnb investment analysis, RedAwning (2009) for vacation rental property sourcing, and Vacasa (2009) providing property management services that can help identify investment opportunities in the Lehi market.