Park City Nightly Rental Rules for STR Zones and HOAs

Thinking about buying in Park City and offsetting costs with nightly rentals? You are not alone. The catch is that short-term rentals live under two sets of rules that can make or break your plan. In this guide, you will learn how city and county zoning work, how HOAs can allow or block rentals, and the exact steps to verify permissions before you write an offer. Let’s dive in.

Park City vs. Summit County rules

Park City’s nightly rental landscape involves two jurisdictions. Properties inside Park City limits follow municipal ordinances and the city’s short-term rental program. Properties outside city limits fall under Summit County rules. Each has its own zoning map, license requirements, inspections, and enforcement.

Inside Park City limits

Park City ties nightly rental permission to zoning and business licensing. You should expect a registration or STR license, possible safety inspections, and a requirement to post the license number on listings and in the unit. Many areas that serve tourism allow nightly rentals, while some residential or historic areas may limit or prohibit them. A local responsible contact who can respond to complaints is commonly required.

Unincorporated Summit County

If the property is outside the city but within Summit County, the county’s STR program applies. Zoning and licensing can differ from the city’s rules. You should verify permit type, occupancy and parking limits, inspection needs, and whether any caps or special conditions apply in the neighborhood.

Zoning basics that shape STR eligibility

Two permissions must align for a legal nightly rental. First, the property’s public zoning and licensing must permit STR use. Second, the private rules that govern the property, such as HOA covenants, must allow it. Both must be satisfied.

Where nightly rentals tend to fit

Resort-oriented or commercial zones are the most likely places to allow nightly rentals. Condo buildings near ski base areas and tourism corridors often anticipate STR use. These locations usually have better parking setups and on-site or local management standards, which can ease compliance.

Where rules tighten

Many residential zones, especially stable single-family neighborhoods and historic Old Town streets, can be more restrictive. Some areas carry special standards such as stricter parking limits or noise expectations. Deed-restricted neighborhoods or communities with owner-occupancy requirements often limit or prohibit nightly use.

Overlay districts and grandfathering

Overlay zones or district-specific standards can change what is allowed on a parcel. If you see references to historic overlays, neighborhood caps, or past license dates, dig deeper. Some properties that operated legally in the past may have been grandfathered under earlier rules. A key question is whether any existing status or license is transferable to a new owner, or if you must apply fresh.

HOAs can allow or block STRs

Even if the city or county allows a nightly rental at the parcel level, an HOA can still prohibit or restrict it. Courts commonly enforce valid private covenants, so you need to confirm the HOA position in writing during due diligence.

Common HOA rental clauses

• Minimum lease terms that block short stays, often 30 days or more.
• Owner occupancy requirements for a set number of days per year.
• Mandatory HOA registration for rental units, proof of insurance, and naming the HOA as additional insured.
• A required on-site or local contact, plus rules for parking, trash, signage, and guest conduct.
• Fees or fines related to STR operations, including violation schedules.

How HOAs enforce and what to watch

HOAs can enforce through fines, liens, suspension of amenity access, and lawsuits. Watch for CC&R language that expressly bans stays under a set number of days. Scan recent board minutes for pending changes that could restrict rentals. Confirm if any permissions are nontransferable and whether enforcement actions exist for the address.

Licenses, safety, and taxes

Nightly rentals usually require more than a green light from zoning. Plan for these items:

• STR or business license with annual renewal, plus posting the license number in listings and onsite.
• Life-safety compliance, such as smoke and CO alarms, egress, and sometimes a fire or building inspection before approval or renewal.
• A 24-7 local responsible party or property manager to address complaints and enforce occupancy and parking rules.
• Occupancy caps and strict parking rules, especially in tighter neighborhoods and historic areas.
• Registration to collect and remit transient room tax and applicable sales taxes through the state. Local city or county tourism taxes may also apply. Rates and procedures change, so confirm current guidance before operating.
• License transferability issues. Many licenses attach to the owner and may not transfer on sale, which can affect timing and certainty if caps or waitlists exist.

Buyer due diligence: a simple checklist

Use this step-by-step process to verify permissions before you commit.

A. Pre-offer research

• Confirm the exact parcel ID and legal address.
• Check Park City’s or Summit County’s zoning map for the parcel’s designation and any overlays.
• Call the relevant planning and business licensing office to confirm whether nightly rentals are allowed for that zoning and parcel. Ask about active or past enforcement cases. Request written confirmation if possible.
• Search the city or county STR license database for an active license at the address.
• Check major booking platforms to see if the property is marketed and whether a license number is shown. A listing by itself is not proof of compliance.
• Ask code enforcement about any complaint or violation history for the property.
• If available, review tax registration or filing history related to transient room tax.

B. HOA and title due diligence

• Obtain current CC&Rs, bylaws, rules and regulations, and any supplemental declarations.
• Request the past 12 to 24 months of HOA board minutes, focusing on short-term rental discussions.
• Ask for the HOA estoppel certificate that shows any violations, fines, or restrictions tied to rentals.
• Ask the HOA in writing whether short-term rentals are permitted, what the application requires, and whether any approvals or registrations transfer on sale.
• Confirm HOA requirements for local contacts, insurance coverage, indemnity agreements, registration fees, and guest conduct rules.

C. Contract protections and contingencies

• Include a specific contingency that verifies STR permissibility under city or county rules and HOA documents. Allow cancellation or remedies if the use is not permitted as expected.
• Require delivery of any existing STR or business license, HOA’s written policy confirmation, and an estoppel showing no rental-related violations.
• If you are valuing the property based on rental income, request booking history and financials, and consider an escrow holdback to cover delays or the risk of nontransferable licenses.

D. Post-contract, pre-closing steps

• Confirm whether any existing STR license is transferable and submit your application early if not. Some areas have caps or waitlists.
• Schedule required safety inspections and obtain any certificates needed for licensing.
• Register for transient room tax and any local accounts. Set up your remittance process before the first guest stays.
• Verify insurance that covers STR operations, including any HOA or lender requirements.
• If you discover an HOA prohibition, consider a contract termination or a negotiated remedy with the seller.

Risks, penalties, and real-world impact

City or county enforcement can include fines, administrative penalties, license suspension, and revocation. Repeat violations usually bring higher fines. HOA enforcement can include fines, liens, and litigation that can shut down nightly rentals even if you meet municipal rules. The stakes are real. If you bought expecting STR income that later gets prohibited, property value and cash flow can drop quickly. Lenders and insurers may also adjust terms or premiums for STR use.

Negotiation moves that protect you

• Make STR permissibility its own contingency with clear standards for approval.
• Require the seller to deliver a copy of any current license and to cure violations before closing.
• Use an escrow holdback or price adjustment if a license is not transferable or timing is uncertain.
• If an HOA restriction surfaces late, seek seller indemnity for pre-closing violations and evaluate termination rights.
• For complex cases, consult a local attorney who understands HOA covenants and STR rules.

Who to contact to verify

• Park City Planning and Business Licensing for parcel-level zoning and STR license status.
• Park City Code Enforcement for complaint or violation history.
• Summit County Short-Term Rental Program for rules in unincorporated areas.
• Utah State Tax Commission for transient room tax and sales tax registration and filing guidance.
• The property’s HOA manager or board, and the association’s legal counsel for CC&Rs, minutes, estoppel, and policy interpretation.
• Your title company and closing attorney for recorded covenants, liens, and deed restrictions.

Final word

Park City’s nightly rental rules are manageable when you approach them systematically. Confirm zoning and licensing, get the HOA’s position in writing, and protect yourself with targeted contingencies. With the right plan, you can buy with confidence and avoid costly surprises.

If you want local insight on Old Town streets, resort zones, and HOA-by-HOA nuance, connect with an agent who lives the market daily. Reach out to Cameron Boone to review a property’s rental profile, plan your due diligence, and move forward with clarity.

FAQs

Do Park City and Summit County have different STR rules?

• Yes. Properties inside Park City limits follow city zoning and licensing, while unincorporated areas follow Summit County’s program. Each can set different permits, occupancy, and enforcement.

If a property is listed on Airbnb, can I assume nightly rentals are allowed?

• No. Listings are not proof of compliance. Verify an active municipal or county license and confirm HOA permission in writing before you rely on rental income.

Can an HOA stop nightly rentals if the city allows them?

• Yes. HOAs can prohibit or restrict short-term rentals through CC&Rs and rules. Those private covenants are enforceable even when zoning allows STRs.

Are short-term rental licenses transferable when a home sells?

• It depends on the jurisdiction and the specific license. Some require the new owner to apply, and some areas have caps or waitlists. Confirm transferability early.

What taxes apply to Park City nightly rentals?

• Expect to collect and remit transient room tax and applicable sales taxes through state and local programs. Rates and procedures change, so register and confirm current guidance before hosting.

What documents should I request from the seller for an STR property?

• Ask for the current STR or business license, any tax registration evidence, booking and income records if valuation depends on them, written HOA policy confirmation, and an estoppel showing no rental-related violations.