Is Park City, Utah Good for Airbnb Investment?

To start an Airbnb in Park City, Utah, begin by researching the city's strict short-term rental regulations, which require a Conditional Use Permit (CUP) and business license, with properties limited to rentals of 30 days or less and subject to a cap on the total number of permits issued annually. Contact Park City's Planning Department to understand current availability and requirements, as the city has implemented a lottery system for new permits due to high demand. Find a suitable property in approved zones (typically residential areas, though some restrictions apply in historic districts), ensuring it meets safety requirements including smoke detectors, carbon monoxide detectors, and proper egress windows. Obtain your CUP through the city's application process, which includes neighborhood notification and potential public hearings, along with a business license from the city clerk's office. Register for Utah state tax collection and obtain necessary insurance coverage that specifically covers short-term rentals. Furnish the property with quality amenities, focusing on ski-season appropriate items like boot dryers, ski storage, and warm bedding, while ensuring compliance with Park City's occupancy limits and parking requirements. List your property on Airbnb and other platforms, highlighting proximity to Park City Mountain Resort and Deer Valley, and implement a management system that includes 24/7 guest communication, professional cleaning between stays, and compliance with the city's noise ordinances and good neighbor policies, while collecting and remitting the required transient room tax to both the city and state.

To identify profitable short-term rental properties in Park City, Utah, focus on locations within 10-15 minutes of Park City Mountain Resort and Deer Valley Resort, prioritizing properties in Old Town, Prospector, or Empire Pass neighborhoods with ski-in/ski-out access or shuttle routes. Target 3-6 bedroom properties built after 1990 with mountain views, hot tubs, fireplaces, updated kitchens, and parking for 4+ vehicles, as these features command premium rates of $400-800+ per night during peak ski season (December-March) and summer festivals. Analyze comparable properties on Airbnb and VRBO within a 2-mile radius, calculating average daily rates, occupancy percentages, and annual revenue potential while factoring in Park City's 28% combined tax rate on STR income. Research competition density using AirDNA or Mashvisor to identify undersupplied micro-markets, and monitor Park City's STR regulations which require business licenses and limit rentals to properties with separate entrances. Utilize tools like Rabbu, PriceLabs for dynamic pricing, and STR Helper for market analysis, while partnering with local property management companies like RedAwning or Vacasa who understand Park City's seasonal demand patterns, with properties typically generating 15-25% annual returns when properly positioned in high-demand locations near ski access or Main Street attractions.

To obtain an Airbnb/STR permit in Park City, Utah, you must apply through the Park City Planning Department located at 445 Marsac Avenue or online through their permitting portal. Required documents include a completed Nightly Rental License application, proof of property ownership or lease agreement with owner consent, floor plans showing maximum occupancy, parking plan demonstrating compliance with two parking spaces per unit, good neighbor agreement, emergency contact information for 24/7 availability, and proof of liability insurance with minimum $1 million coverage. The application fee is approximately $500-800 annually depending on property size, with additional inspection fees of around $200-300. Park City has specific requirements including a maximum occupancy of two people per bedroom plus two additional guests, mandatory business license, compliance with fire safety codes, noise ordinances with quiet hours from 10 PM to 8 AM, and adherence to the city's nightly rental cap which limits the total number of permits issued. Properties in certain residential zones may be prohibited from operating as short-term rentals, and all units must pass initial and annual safety inspections. The timeline typically takes 4-8 weeks for approval once all documents are submitted, though this can extend during peak application periods. You must also register with Summit County for tax collection purposes and maintain current contact information with the city throughout the permit period.

Short-term rentals (STRs) are legal in Park City, Utah, but operate under strict regulations implemented in 2019 following community concerns about housing availability and neighborhood impacts. The city requires STR operators to obtain a conditional use permit and business license, with properties limited to a maximum of 30 rental nights per year unless they qualify for additional nights through a lottery system that caps total STR nights citywide. STRs are prohibited in certain residential zones and must meet specific requirements including parking provisions, noise restrictions, and occupancy limits of two people per bedroom plus two additional guests. Properties must be owner-occupied for at least 50% of the year, and operators face penalties including permit revocation for violations. Recent changes in 2022-2023 have tightened enforcement and reduced the total number of available STR nights through the lottery system, reflecting the city's ongoing efforts to balance tourism revenue with resident housing needs and quality of life concerns in this popular ski resort destination.

The most lucrative Airbnb investment areas in Park City, Utah include Old Town/Historic Main Street, which offers year-round appeal with proximity to ski lifts, the Sundance Film Festival venues, and walkable dining and shopping, commanding premium rates during both winter ski season and summer events. The Canyons Village area near Park City Mountain Resort provides excellent rental potential due to direct ski-in/ski-out access and newer luxury developments that attract high-paying guests seeking convenience. Deer Valley Resort vicinity, particularly areas like Silver Lake Village and Snow Park, represents the premium market with upscale accommodations serving affluent skiers and summer visitors attending concerts and festivals. The Prospector and Park Meadows neighborhoods offer more affordable entry points while still maintaining strong rental demand from families and groups seeking spacious accommodations within 10-15 minutes of major ski areas. Empire Pass and Montage Deer Valley areas cater to ultra-luxury market segments, generating exceptional nightly rates during peak seasons, while the Jeremy Ranch and Pinebrook areas provide value-oriented options that still benefit from Park City's tourism draw, particularly appealing to larger groups and extended-stay business travelers attending conferences at venues like Montage Deer Valley.

Airbnb properties in Park City, Utah are subject to multiple lodging taxes including Utah's state transient room tax of 4.25%, Summit County's transient room tax of 3%, and Park City's municipal transient room tax of 2.5%, totaling approximately 9.75% in combined lodging taxes. These taxes apply to stays of less than 30 consecutive days and are collected from guests at the time of booking through Airbnb's automatic tax collection system for most properties. Property owners must register with the Utah State Tax Commission and obtain a transient room tax license, with taxes typically remitted monthly by the 20th of the following month through Utah's online tax portal. Park City also requires a business license and short-term rental permit for Airbnb operations. Exemptions generally include stays of 30 days or longer, certain government employees on official business, and some nonprofit organization bookings, though documentation may be required to qualify for exemptions.

Starting an Airbnb in Park City, Utah requires significant upfront investment due to the area's premium ski resort market positioning. Property purchase costs average $1,200,000 for a median 3-bedroom condo suitable for short-term rentals, though single-family homes can reach $2,500,000. Furnishing costs typically run $35,000-50,000 for a complete setup including furniture, appliances, linens, and décor to meet guest expectations in this luxury market. Initial setup expenses include professional photography ($800), listing optimization ($1,500), and welcome amenities ($500). Park City requires a business license ($100), transient room tax registration ($50), and potential HOA approval which may involve legal fees ($2,000-5,000). Insurance costs approximately $3,500 annually for short-term rental coverage. Monthly utilities average $300-400 for electricity, gas, water, internet, and cable. First six months operating costs include property management (25% of revenue, estimated $15,000), cleaning services ($150 per turnover, roughly $7,200), maintenance and supplies ($3,000), marketing ($2,000), and miscellaneous expenses ($2,000). Total estimated startup costs range from $1,275,000 to $1,325,000 for a turnkey Airbnb operation, with luxury properties requiring substantially higher investment.

Airbnb properties in Park City, Utah demonstrate strong profitability potential with average annual revenues ranging from $45,000-$85,000 for well-positioned properties, driven by the city's dual-season appeal as a premier ski destination in winter and mountain recreation hub in summer. Properties within 2-3 miles of Park City Mountain Resort or Deer Valley typically achieve 65-75% occupancy rates with average daily rates of $200-$400 in peak winter months and $150-$250 during summer, while shoulder seasons see rates drop to $100-$180. Operating expenses generally consume 35-45% of gross revenue, including cleaning fees ($75-$150 per turnover), property management (20-25% of revenue), utilities ($200-$400 monthly), insurance ($2,000-$4,000 annually), and maintenance costs averaging $3,000-$6,000 yearly. Net profit margins typically range from 25-40% for owner-operated properties, with luxury ski-in/ski-out condos in developments like Montage Deer Valley or St. Regis achieving the highest returns despite higher acquisition costs. Success factors include proximity to ski lifts, professional photography, responsive guest communication, and strategic pricing during Sundance Film Festival in January when rates can exceed $500-$800 nightly, with properties like those managed by RedAwning or Vacasa consistently outperforming individual operators through superior marketing reach and operational efficiency.

Airbnb investments in Park City, Utah typically generate annual ROI of 12-18% due to the city's strong ski tourism and year-round outdoor recreation appeal. Cash-on-cash returns generally range from 8-14% annually, with properties near Park City Mountain Resort and Deer Valley commanding premium rates of $200-400 per night during peak ski season (December-March) and $150-250 during summer months. Most investors achieve profitability within 18-24 months, assuming a 25-30% down payment on properties averaging $800,000-$1.2 million. The market benefits from consistent demand driven by Vail Resorts' ownership of Park City Mountain Resort since 2014 and the area's proximity to Salt Lake City International Airport. Properties with 3-4 bedrooms and hot tubs typically achieve 65-75% occupancy rates annually, generating gross rental yields of 6-9% before expenses, with net yields settling around 4-6% after accounting for property management fees, maintenance, utilities, and local taxes.

STRSearch is a national platform that specializes in identifying profitable short-term rental investment properties in Park City, Utah, offering data-driven insights and market analysis. Local real estate agents like Summit Sotheby's International Realty, Windermere Real Estate Utah, and Engel & Völkers Park City have extensive experience with vacation rental properties in the area. National services include Awning (formerly RedAwning), which provides end-to-end Airbnb investment services, AirDNA for market data and analytics, Mashvisor for rental property analysis, and BiggerPockets for investor networking and resources. Park City-specific companies like Park City Property Management and Alpine Property Management offer local expertise in vacation rental management and can help identify investment opportunities. Additional national platforms like Roofstock, which expanded into short-term rental investments around 2021, and AvantStay, which focuses on group vacation rentals, also serve the Park City market. Local mortgage brokers such as Academy Mortgage and Mountain West Financial specialize in investment property financing for the Park City area.