Is Provo, Utah Good for Airbnb Investment?

To start an Airbnb in Provo, Utah, begin by researching the city's short-term rental regulations, which require a business license and compliance with zoning ordinances that typically allow short-term rentals in residential areas with certain restrictions on occupancy and parking. Obtain necessary permits including a Provo City business license (approximately $50-100 annually) and ensure compliance with Utah state tax requirements for transient room tax collection. Find a suitable property by analyzing Provo's rental market, focusing on areas near Brigham Young University, downtown, or scenic locations like Rock Canyon, with average nightly rates ranging $80-150 depending on location and amenities. Purchase essential furnishings including quality bedding, basic kitchen supplies, WiFi, cleaning supplies, and safety equipment like smoke detectors and fire extinguishers, budgeting approximately $3,000-8,000 for initial setup. Create your Airbnb listing with professional photos, detailed descriptions highlighting proximity to BYU campus and local attractions like Provo Canyon, and competitive pricing based on comparable properties in the area. Manage your property by establishing cleaning protocols between guests, responding promptly to inquiries and reviews, coordinating check-ins/check-outs, maintaining the property regularly, and ensuring compliance with Provo's noise ordinances and occupancy limits to maintain good standing with both the platform and local authorities.

To identify profitable short-term rental properties in Provo, Utah, focus on locations within 2-3 miles of Brigham Young University campus, downtown Provo near the FrontRunner station, and areas close to Utah Lake and Provo Canyon for outdoor recreation access. Target 2-4 bedroom properties built after 1980 with updated kitchens, multiple bathrooms, parking spaces, and outdoor amenities like patios or mountain views that appeal to visiting families, BYU guests, and outdoor enthusiasts. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds long-term rental income by 40-60%, typically finding sweet spots in the $300,000-$500,000 purchase range in Provo. Research competition by analyzing existing Airbnb and VRBO listings within a 1-mile radius, identifying gaps in amenities or underpriced properties, while noting that Provo has relatively limited STR inventory compared to Park City or Salt Lake City. Utilize tools like Rabbu for Utah-specific market data, the Utah County Assessor's office for property records, and connect with local real estate agents familiar with Provo's unique dynamics including BYU academic calendar impacts, seasonal outdoor recreation patterns, and the city's STR regulations which require business licenses and limit occupancy to maintain neighborhood character.

To obtain an Airbnb/STR permit in Provo, Utah, you must first apply through the Provo City Community Development Department located at 445 West Center Street or online through their permitting portal. Required documents include a completed short-term rental application, proof of property ownership or lease agreement with landlord consent, a site plan showing parking spaces and property layout, proof of liability insurance (minimum $1 million), contact information for a local property manager if you live more than 60 minutes away, and a floor plan indicating maximum occupancy. The application fee is approximately $200-300 with an annual renewal fee of around $150. Provo requires STRs to be owner-occupied or have an on-site manager, maintain adequate parking (typically 1 space per bedroom plus 1), limit occupancy to 2 people per bedroom plus 2 additional guests, and comply with noise ordinances and neighborhood compatibility standards. The approval process typically takes 4-6 weeks after submitting a complete application, and you must also obtain a business license from Utah County and register with the Utah State Tax Commission for transient room tax collection. Properties must pass a safety inspection and maintain compliance with fire safety codes, and operators must provide 24/7 contact information to the city and neighboring properties.

Short-term rentals (STRs) are legal in Provo, Utah, but operate under specific regulations established by the city. As of recent years, Provo 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 600 feet. The city prohibits STRs in certain residential zones without proper permits and requires compliance with safety standards, parking requirements, and noise ordinances. Properties must meet fire safety codes and maintain liability insurance, while operators face restrictions on the number of guests and vehicles. Provo has implemented these regulations around 2018-2020 to balance tourism benefits with neighborhood preservation, requiring annual permit renewals and allowing for neighbor complaints to trigger reviews. The city generally allows STRs in most residential areas with proper permitting, but enforcement has become stricter regarding unpermitted operations, and violations can result in fines and permit revocation.

The best Airbnb investment areas in Provo, Utah include the Downtown Provo district near Center Street and University Avenue, which attracts business travelers, conference attendees visiting the Provo Convention Center, and tourists exploring local restaurants and cultural venues. The Brigham Young University area, particularly neighborhoods within walking distance of campus like the Maeser and Franklin neighborhoods, offers consistent demand from visiting families during graduation ceremonies, sports events, and academic conferences, with BYU hosting over 30,000 students and generating significant visitor traffic year-round. The Provo Canyon entrance area near Canyon Road provides appeal for outdoor enthusiasts accessing hiking trails, Bridal Veil Falls, and Sundance Resort activities, particularly during ski season and summer recreation months. The Historic Provo Center area around 100 South offers charm for tourists interested in the city's heritage sites and provides easy access to FrontRunner commuter rail for Salt Lake City business travelers. East Bay neighborhoods near Provo Bay and Utah Lake attract visitors during summer months for water recreation and offer scenic views, while areas near the Shops at Riverwoods provide convenience for shopping-focused travelers and easy highway access.

In Provo, Utah, Airbnb hosts are subject to multiple lodging taxes including Utah's state transient room tax of 4.25%, Utah County's transient room tax of approximately 3%, and Provo City's transient room tax of 1%, totaling roughly 8.25% in combined lodging taxes on short-term rental bookings. These taxes apply to stays of less than 30 consecutive days and are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2018-2019 for most Utah jurisdictions. Airbnb remits the collected state taxes directly to the Utah State Tax Commission monthly, while local taxes are remitted to Utah County and Provo City respectively according to their filing schedules, usually monthly or quarterly depending on volume. Hosts must register with the Utah State Tax Commission for a sales tax license and may need separate registrations with local jurisdictions, though Airbnb's collection service handles most compliance automatically. Exemptions are limited and typically include stays of 30 days or longer which are considered long-term rentals rather than transient lodging, and certain government or non-profit related stays may qualify for exemptions with proper documentation, though hosts should verify current exemption criteria as they can change.

To start an Airbnb in Provo, Utah, the total initial 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 Provo as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 3-bedroom home including furniture, bedding, kitchenware, and decor from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, and marketing materials run $1,500-$3,000. Permits and fees in Provo include business license ($50-$100), short-term rental permit ($200-$500), and potential HOA approval fees totaling $500-$1,000. Insurance costs for short-term rental coverage average $2,000-$3,500 annually, with the first year paid upfront. Utility setup and deposits for electricity, gas, water, internet, and cable services cost approximately $1,000-$2,000. First six months of operating costs including utilities ($300/month), cleaning services ($100-$150 per turnover), supplies and maintenance ($200/month), platform fees to Airbnb and VRBO (3% of bookings), and property management software subscriptions total approximately $8,000-$12,000, assuming 60-70% occupancy rates typical for Provo's market near Brigham Young University.

Airbnb properties in Provo, Utah demonstrate strong profitability potential with average annual revenues ranging from $18,000-$35,000 for typical 2-3 bedroom properties, driven by consistent demand from Brigham Young University students, visiting families, and business travelers to major employers like Qualtrics and Adobe. Operating expenses typically run 40-50% of gross revenue, including cleaning fees ($75-100 per turnover), utilities ($150-200 monthly), property management (15-25% if outsourced), insurance ($1,200-1,800 annually), and maintenance costs, resulting in net profit margins of 25-35% for well-managed properties. Success factors include proximity to BYU campus (properties within 2 miles command 20-30% premium rates), professional photography and staging, maintaining 4.8+ star ratings, and strategic pricing during peak periods like graduation weekends and football season when daily rates can reach $200-300 compared to typical $80-120 rates. Properties in neighborhoods like Joaquin, Sunset, and areas near University Avenue consistently outperform the market, with some investors reporting ROI of 12-18% annually when factoring in property appreciation, though success heavily depends on local zoning compliance, as Provo has implemented stricter short-term rental regulations requiring conditional use permits in residential zones since 2019.

Airbnb investments in Provo, Utah typically generate annual ROI of 12-18% due to strong demand from Brigham Young University students, visiting families, and business travelers to the tech corridor. Cash-on-cash returns generally range from 8-14% annually, with properties near BYU campus and downtown areas performing at the higher end of this range. Most investors achieve profitability within 18-24 months, with average daily rates of $85-120 and occupancy rates of 65-75% throughout the year. The market benefits from consistent year-round demand, with peak seasons during university events, graduation periods, and summer months when tourism increases. Properties requiring minimal renovation typically see faster returns, while those needing significant updates may take 30-36 months to reach full profitability but often command premium rates of $130-180 per night once completed.

STRSearch is a national platform that helps investors identify profitable short-term rental properties in Provo, Utah, using data analytics to evaluate potential returns. Local real estate agents specializing in Airbnb investments in Provo include Coldwell Banker Residential Brokerage agents who focus on investment properties, RE/MAX Associates agents with vacation rental expertise, and Century 21 Everest agents who understand the local market dynamics around Brigham Young University and downtown Provo. National services include Mashvisor, which provides Airbnb analytics and property recommendations for the Provo market, AirDNA for market data and performance metrics, Awning for turnkey Airbnb investment properties, Roofstock for rental property investments that can be converted to short-term rentals, and BiggerPockets for connecting with local investors and agents. Local property management companies like RedAwning Property Management and Vacasa also assist investors by managing their Airbnb properties once purchased, while local investment groups and meetups in the Utah County area provide networking opportunities with experienced Airbnb investors who understand Provo's seasonal rental patterns driven by university events and outdoor recreation tourism.