Is Pleasant Grove, Utah Good for Airbnb Investment?

To start an Airbnb in Pleasant Grove, Utah, begin by researching the city's short-term rental regulations, as Pleasant Grove requires a business license and conditional use permit for properties operating as short-term rentals, with applications submitted to the Community Development Department and fees typically ranging $100-300. Contact Pleasant Grove City Hall at 70 South 100 East to obtain the specific zoning requirements, as residential zones may have restrictions on rental duration and occupancy limits. Find a suitable property by searching areas near Utah Lake or established neighborhoods, ensuring the property meets safety codes including smoke detectors, carbon monoxide detectors, and proper egress windows. Obtain necessary permits including a business license from Pleasant Grove City, a sales tax license from the Utah State Tax Commission, and ensure compliance with Utah County health department requirements if applicable. Furnish the property with quality basics including comfortable beds, linens, towels, kitchen essentials, WiFi, and local guidebooks, budgeting approximately $3,000-8,000 for initial furnishing depending on property size. Create listings on Airbnb, VRBO, and Booking.com with professional photos highlighting proximity to Utah Lake recreation, Thanksgiving Point (15 minutes), and Salt Lake City (45 minutes), setting competitive rates around $80-150 per night based on local market analysis. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges through lockboxes or smart locks, and maintaining compliance with Pleasant Grove's noise ordinances and parking requirements while building positive reviews to increase bookings.

To identify profitable short-term rental properties in Pleasant Grove, Utah, focus on locations within 15-20 minutes of major ski resorts like Sundance and within proximity to Utah Lake recreational activities, prioritizing neighborhoods with mountain or lake views and easy highway access. Target 3-4 bedroom single-family homes or condos built after 1990 with modern amenities, outdoor spaces, hot tubs, and mountain cabin aesthetics that appeal to both winter sports enthusiasts and summer recreation seekers. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue (typically $150-300/night in Pleasant Grove's market) exceeds long-term rental income by 40-60%, while factoring in seasonal fluctuations with peak demand during ski season (December-March) and summer months (June-August). Research competition by analyzing existing Airbnb and VRBO listings within a 5-mile radius, identifying gaps in amenities or pricing strategies, and noting that Pleasant Grove has moderate STR competition compared to Park City but benefits from lower property acquisition costs. Utilize tools like Rabbu, AirDNA, and local MLS data through Realtor.com, while consulting with Pleasant Grove city planning department regarding STR regulations and HOA restrictions, and consider partnering with local property management companies like RedAwning or Vacasa who understand the Utah County market dynamics and can optimize occupancy rates year-round.

To obtain an Airbnb/STR permit in Pleasant Grove, Utah, you must first contact the Pleasant Grove City Planning Department at City Hall located at 70 South 100 East to determine current zoning compliance and submit a Conditional Use Permit application if required, as short-term rentals are typically regulated under conditional use provisions. Required documents include a completed application form, property deed or lease agreement, floor plan showing maximum occupancy, parking plan demonstrating adequate off-street parking, contact information for a local property manager if you're non-resident, proof of liability insurance (minimum $1 million), and a good neighbor agreement outlining house rules. The application fee is approximately $200-400 plus additional fees for public notices and hearings if required. You must also obtain a business license from the city clerk's office for approximately $50-75 annually and register with Utah State Tax Commission for transient room tax collection. The timeline typically takes 4-8 weeks including a public hearing before the Planning Commission, and Pleasant Grove specific requirements include limiting occupancy to 2 people per bedroom plus 2 additional guests, maintaining quiet hours from 10 PM to 8 AM, providing adequate parking spaces (typically 2 per unit), ensuring the property manager responds to complaints within 2 hours, and conducting annual safety inspections for smoke detectors and emergency exits.

Short-term rentals (STRs) are legal in Pleasant Grove, Utah, but operate under specific municipal regulations that were updated around 2020-2022. The city requires STR operators to obtain a conditional use permit and business license, with properties limited to owner-occupied dwellings or properties where the owner lives within a certain distance. Pleasant Grove restricts STRs in certain residential zones and requires compliance with occupancy limits, parking requirements, and noise ordinances. The city has implemented a registration system and caps on the total number of STR permits to preserve neighborhood character, with violations subject to fines and permit revocation. Recent changes have included stricter enforcement mechanisms and enhanced neighbor notification requirements during the permit application process, reflecting the city's approach to balance tourism revenue with residential community concerns.

The most promising Airbnb investment areas in Pleasant Grove, Utah include the neighborhoods near Utah Lake waterfront properties, particularly around Pleasant Grove Marina and the lakeside residential areas, which attract summer tourists, water sports enthusiasts, and families seeking lake recreation from May through September. The historic downtown Pleasant Grove area near Main Street offers charm for visitors exploring local festivals like Strawberry Days (established 1946) and provides easy access to dining and shopping while maintaining lower property costs than neighboring Provo. Areas close to the Pleasant Grove Recreation Center and near the foothills provide appeal for outdoor enthusiasts visiting nearby American Fork Canyon, Timpanogos Cave National Monument, and hiking trails, drawing year-round adventure tourists. Properties within walking distance of the FrontRunner station area capture business travelers commuting to Salt Lake City tech companies like Adobe, eBay, and Vivint, while also serving Utah Valley University visitors and parents of BYU students seeking more affordable accommodations than Provo hotels. The residential areas near Battle Creek and Grove Creek offer mountain views and proximity to recreational activities while maintaining the small-town appeal that differentiates Pleasant Grove from busier neighboring cities, attracting guests seeking a quieter base for exploring Utah County attractions.

Pleasant Grove, Utah imposes a transient room tax of 3.5% on short-term rental accommodations including Airbnb properties, which applies to stays of less than 30 consecutive days. This tax is collected directly from guests at the time of booking through Airbnb's automated tax collection system, which remits payments quarterly to the city on behalf of hosts. Additionally, hosts must pay Utah state sales tax of 4.85% plus local sales tax of approximately 1.25%, bringing the total local sales tax to around 6.1% on rental income. Salt Lake County may impose an additional transient room tax of up to 1%, though this varies by specific location within the county. Hosts are required to register for a Utah sales tax license and file monthly or quarterly returns depending on their revenue volume, with payments due by the 20th of the month following the reporting period. Properties rented for 30 days or longer are generally exempt from transient occupancy taxes but may still be subject to regular sales tax obligations. The city requires short-term rental operators to obtain a business license and comply with zoning regulations, with some residential zones having restrictions on short-term rental operations.

The total cost to start an Airbnb in Pleasant Grove, Utah is approximately $485,000-$535,000. Property purchase costs around $425,000 based on Pleasant Grove's median home price as of 2024. Furnishing a 3-bedroom property requires $15,000-$25,000 for quality furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total $2,000-$3,000. Permits and fees include a business license ($50-$100), short-term rental permit ($200-$500), and potential HOA approval fees totaling $500-$1,000. Insurance for short-term rentals costs $2,000-$3,000 annually, with the first year paid upfront. Utilities including electricity, gas, water, internet, and cable average $300-$400 monthly or $1,800-$2,400 for six months. First six months operating costs including cleaning services ($150 per turnover), maintenance reserves, property management software, marketing, and miscellaneous expenses total $8,000-$12,000. Additional considerations include potential property improvements or renovations ($5,000-$15,000) and working capital reserves for vacancy periods, bringing the comprehensive startup investment to approximately $485,000-$535,000 depending on property condition and furnishing quality choices.

Airbnb properties in Pleasant Grove, Utah typically generate annual revenues between $18,000-$35,000 for single-family homes and $12,000-$22,000 for condos, with average daily rates ranging from $85-$140 depending on property size and amenities. Operating expenses generally consume 40-55% of gross revenue, including cleaning fees ($30-$50 per turnover), utilities ($150-$250 monthly), property management (15-25% of revenue), insurance ($1,200-$2,000 annually), and maintenance costs averaging $2,000-$4,000 yearly. Net profit margins typically range from 15-25% for well-managed properties, with successful hosts achieving higher margins through strategic pricing, excellent guest experiences, and efficient operations. Key success factors include proximity to outdoor recreation areas like Utah Lake and nearby ski resorts, professional photography, responsive communication, and maintaining high cleanliness standards. Properties within walking distance of Pleasant Grove's downtown area or with mountain views command premium rates, while those offering amenities like hot tubs, game rooms, or family-friendly features see occupancy rates of 65-75% compared to 45-60% for basic listings. The market benefits from year-round demand due to both summer lake activities and winter sports tourism, though properties typically see stronger performance during peak summer months (June-August) and winter ski season (December-March).

Based on Pleasant Grove, Utah market conditions as of 2023-2024, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% depending on property type and location within the city. Single-family homes near Utah Lake and Timpanogos Cave National Monument command premium rates of $120-180 per night during peak seasons, while condos and smaller properties average $80-130 nightly. Initial profitability usually occurs within 8-14 months after accounting for furnishing costs, permits, and marketing expenses. Properties within walking distance of Pleasant Grove's recreational areas and with mountain views typically achieve the higher end of ROI ranges at 15-18% annually, while standard residential properties in neighborhoods further from attractions see returns closer to 12-15%. The market benefits from year-round demand due to proximity to ski resorts, hiking trails, and business travelers to nearby Lehi tech corridor, with occupancy rates averaging 65-75% annually and seasonal peaks reaching 85-90% during summer months and winter ski season.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors, offering comprehensive market analysis and property recommendations in Pleasant Grove, Utah. Local real estate agents serving the area include Coldwell Banker Realty, RE/MAX Associates, and Keller Williams Realty, with agents like those at Summit Sotheby's International Realty who understand the Utah County vacation rental market. National services include Mashvisor, which provides Airbnb analytics and investment property search tools, AirDNA for market data and revenue projections, and Awning for turnkey Airbnb investment properties. Local property management companies such as RedAwning, Vacasa, and local Utah-based STR management firms like Alpine Property Management help investors maximize their rental income. Additional services include BiggerPockets for networking and education, Roofstock for online real estate investing, and local mortgage brokers familiar with investment property financing in the Pleasant Grove market, typically serving investors since around 2015-2020 as the short-term rental market expanded in Utah.