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 understand zoning restrictions, as short-term rentals are typically allowed in residential zones with proper permits. Obtain your Utah state tax license through the Utah State Tax Commission and register for transient room tax collection. Find a suitable property by researching neighborhoods like Traverse Mountain, Lehi Crossing, or areas near tech companies like Adobe and Microsoft, focusing on properties with 2-4 bedrooms that can accommodate families and business travelers. Furnish the space with quality furniture, fast Wi-Fi, kitchen essentials, and local amenities guides, ensuring compliance with Utah's smoke detector and carbon monoxide detector requirements. Create your Airbnb listing with professional photos highlighting proximity to Silicon Slopes tech corridor, Thanksgiving Point, and easy access to Salt Lake City and Provo. For management, establish cleaning protocols between guests, maintain 24/7 communication availability, coordinate with local cleaning services, and ensure compliance with Lehi's noise ordinances and parking requirements while collecting and remitting the required 4.85% state transient room tax plus local taxes.

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 hiking and skiing. Target 3-4 bedroom single-family homes or townhomes built after 2000 with modern amenities, dedicated workspaces, fast internet, parking for 2+ vehicles, and outdoor spaces like patios or decks that appeal to both business travelers and families. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, aiming for nightly rates between $150-300 depending on size and amenities, while calculating potential gross yields of 8-12% annually. Research competition by studying existing STR listings within a 3-mile radius, identifying gaps in amenities or pricing, and monitoring occupancy rates through tools like AllTheRooms and Transparent. Utilize Lehi-specific resources including the city's business licensing department for STR regulations, local property management companies like RedAwning or Vacasa for market insights, MLS data through local realtors familiar with investment properties, and networking with the Utah Real Estate Investors Association for market intelligence and financing connections.

To obtain an Airbnb/STR permit in Lehi, Utah, you must first contact the Lehi City Planning Department at 153 North 100 East, Lehi, UT 84043 or call (801) 768-7100 to begin the conditional use permit application process, as short-term rentals require special approval in residential zones. You'll need to submit a completed conditional use permit application, property deed or lease agreement, site plan showing parking arrangements, floor plan of the rental unit, proof of homeowner's insurance with short-term rental coverage, contact information for a local property manager if you're not residing on-site, and a $500-750 application fee. Lehi requires that short-term rentals maintain at least two off-street parking spaces, have working smoke and carbon monoxide detectors, provide a 24-hour contact number for guests, and comply with occupancy limits of two people per bedroom plus two additional guests. The application process typically takes 4-6 weeks and includes a public hearing before the Planning Commission, after which you'll receive either approval with conditions or denial. Once approved, you must also obtain a business license from Lehi City for approximately $50-100 annually and register with the Utah State Tax Commission for transient room tax collection, which requires remitting 4.25% state tax plus any applicable local taxes quarterly.

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 operators to comply with occupancy limits, parking requirements, noise ordinances, and maintain 24/7 contact availability for complaints. Properties must meet safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers, while operators are required to collect and remit transient room taxes. Lehi prohibits STRs in certain residential areas where homeowners associations have specific restrictions, and the city has implemented stricter enforcement measures since 2019-2020 following neighbor complaints about noise and parking issues. Recent changes include enhanced penalty structures for violations and mandatory annual permit renewals, with the city conducting regular inspections to ensure compliance with zoning laws and safety requirements.

The best areas for Airbnb investment in Lehi, Utah include the Traverse Mountain area, which attracts business travelers due to its proximity to major tech companies like Adobe, Microsoft, and Xero, along with families visiting the area's recreational amenities and events at Thanksgiving Point. The Holbrook Farms neighborhood offers appeal for both business and leisure travelers, being centrally located with easy access to Silicon Slopes tech corridor while maintaining a residential feel that attracts extended-stay guests. The area near Thanksgiving Point is particularly attractive due to year-round events, conferences, and attractions including the Museum of Natural Curiosity and seasonal festivals that drive consistent tourism demand. Properties near the Lehi FrontRunner station provide excellent value for business travelers commuting to Salt Lake City and tourists exploring the broader Wasatch Front region. The newer developments around Jordan River Parkway attract outdoor enthusiasts and families seeking recreational activities, while the historic downtown Lehi area appeals to visitors interested in local culture and those attending events at nearby venues, with all these areas benefiting from Lehi's rapid growth as a major tech hub since 2010.

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 3-4%, totaling roughly 8-9% in combined lodging taxes. These taxes apply to short-term rentals under 30 consecutive 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. Exemptions generally include stays of 30 days or longer, certain government and nonprofit organization bookings, and in some cases religious or charitable organization stays, though hosts should verify current exemption criteria as they can change and vary by jurisdiction.

To start an Airbnb in Lehi, Utah, the total costs would be approximately $520,000-$580,000. Property purchase represents the largest expense at $450,000-$500,000 based on median home prices in Lehi as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 3-bedroom home including furniture, bedding, kitchen essentials, and decor from retailers like IKEA, Wayfair, and local furniture stores. Initial setup costs including professional photography, listing creation, and basic supplies total around $2,000-$3,000. Permits and fees in Utah County include business license ($100-$300), short-term rental permit ($200-$500), and potential HOA approval fees ($100-$500). Insurance costs approximately $1,500-$2,500 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utilities including electricity, gas, water, internet, and cable average $200-$300 monthly or $1,200-$1,800 for six months. First six months operating costs encompass cleaning services ($100-$150 per turnover), maintenance reserves ($500-$1,000 monthly), Airbnb host fees (3% of bookings), marketing expenses, and miscellaneous supplies totaling approximately $8,000-$12,000. Additional considerations include property taxes ($3,000-$5,000 annually) and potential property management fees if outsourced (20-30% of revenue).

Airbnb properties in Lehi, Utah demonstrate strong profitability potential with average nightly rates ranging from $85-150 for typical 2-3 bedroom homes, generating monthly revenues of $2,500-4,500 during peak seasons. Operating expenses typically include mortgage payments ($1,200-2,000), utilities ($150-250), cleaning fees ($40-60 per turnover), property management (10-20% of revenue), insurance ($100-200), and maintenance ($200-400 monthly), resulting in net profit margins of 25-40% for well-managed properties. Success factors in Lehi include proximity to tech companies like Adobe, Microsoft, and Qualtrics which drive consistent business travel demand, easy access to Thanksgiving Point and outdoor recreation areas, and the city's rapid population growth of 8-12% annually since 2018. Case studies from 2022-2023 show that properties near Silicon Slopes tech corridor achieve 75-85% occupancy rates with hosts like those managing homes in Traverse Mountain and Thanksgiving Point areas reporting annual profits of $15,000-35,000 after expenses, while properties offering amenities like hot tubs, mountain views, or proximity to Lehi FrontRunner station command premium rates and achieve the highest profitability margins in the 35-45% range.

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 near Thanksgiving Point and downtown Lehi command premium nightly rates of $120-180, with occupancy rates averaging 65-75% annually due to consistent business travel and tourism demand. Initial profitability usually occurs within 18-24 months, with investors seeing break-even around month 14-20 depending on property acquisition costs and renovation expenses. The market benefits from Lehi's rapid population growth of 4-6% annually since 2018, strong job market with unemployment below 3%, and limited hotel inventory that supports short-term rental demand. Cash-on-cash returns are optimized when purchasing properties in the $400,000-550,000 range with 20-25% down payments, generating monthly gross revenues of $2,800-4,200 after accounting for seasonal fluctuations and operating expenses averaging 35-40% of gross income.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Lehi, Utah, offering comprehensive market analysis and property recommendations. Local real estate agents specializing in Airbnb investments in Lehi include Realtypath Utah, Windermere Real Estate, and Coldwell Banker Residential Brokerage, with agents like those at KW South Valley and RE/MAX Associates having experience in investment properties. National services include Mashvisor, which provides rental property analytics for the Utah market, AirDNA for short-term rental data analysis, and Awning, a platform specifically designed for Airbnb property investments. RedAwning and Vacasa also offer property management and investment guidance services in the Utah County area. Local property management companies like SkyRun Utah and Utah's Best Vacation Rentals can provide insights into profitable properties while offering management services. Investment-focused real estate companies such as Roofstock and Arrived Homes occasionally feature Utah properties, while local firms like Utah Real Estate Investments and Mountain West Real Estate specialize in helping investors identify cash-flowing properties in the Lehi market, taking advantage of the area's proximity to major tech companies and outdoor recreation areas.