Utah ties the HOA rental fee to a noticed board vote
Utah ties the HOA rental fee to a noticed board vote
2026-09-19 · Utah · Legislation
A Utah association can charge an owner who rents out a lot up to $200 a year — but only if at least 35% of the association's lots are already rentals, and only after a noticed board meeting and a majority vote.
The cap sits at Utah Code § 57-8a-209(9)(c), rewritten by Senate Bill 201 of the 2025 session, effective May 7, 2025:1
“An association that permits at least 35% of the lots in the association to be rental lots may charge a lot owner who owns a rental lot a fee of up to $200 once every 12 months…”
The threshold runs the opposite way to intuition. It is not a cap on how many rentals are allowed — it is a floor an association has to be above before it may charge the fee at all. A community that permits few rentals cannot levy it.
Who is exempt regardless
Section 57-8a-209(2)(a) exempts five categories from a rental prohibition, restriction or fee: an owner in the military for the period of deployment; a lot occupied by the owner's parent, child or sibling; an owner whose employer has relocated them for two years or less; a lot owned by an entity occupied by an individual holding at least 25% of it; and a lot owned by a qualifying estate-planning trust.
The minimum lease term, by rule
S.B. 201 also moved minimum lease terms out of the declaration and into the rulebook. Section 57-8a-209(1)(c): “An association may establish, by rule, a minimum lease term of six months or less.”
Six months is the ceiling on what a rule can reach. A longer minimum term remains a declaration-level restriction, adopted under the amendment machinery at § 57-8a-104 — a majority vote at a meeting with at least 51% of voting interests present, and not by the board. Our Utah short-term rentals page sets out how the rule route and the declaration route differ.
The grandfather clause, and its trapdoor
Section 57-8a-209(6)(a)(iii) preserves the position of associations formed before May 12, 2009 — but conditionally:
“…an association that is formed before May 12, 2009, unless, on or after May 12, 2015, the association: (A) adopts a rental restriction or prohibition; or (B) amends an existing rental restriction or prohibition.”
The exemption is forfeited by acting. An older association that touched its rental provisions after May 2015 — even to tighten them, even to tidy them — stepped out from behind the grandfather clause.
Grandfathering is not a rescue for an unlawful use
The state's HOA ombudsman drew that line in Advisory Opinion 2026-13 (Wiser v. Swan Creek Village Homeowners Association, March 30, 2026). An owner argued his short-term bookings predated the association's current restrictions. The office concluded: “[His] short-term bookings were in violation of the Governing Documents from the very beginning. Because his rentals were never legally permitted under the CC&Rs, he does not qualify for protection and must comply with the Association's current rental restrictions.”2
The same opinion upheld a rule shifting the association's legal fees onto a violating owner: “The Association's rule requiring a homeowner to pay for legal fees resulting from a violation is valid…Consequently, the Association did not violate the law by adopting the Rules.” A $314,000 fine in the same dispute had already been rescinded by the association before the opinion issued.
Renting part of a unit
The condominium side produced its own boundary case. In Advisory Opinion 2026-16 (Green v. Vivante Homeowners Association, April 14, 2026), an owner living in his own unit wanted to rent two bedrooms; the association allowed one. The office upheld the limit: “The Association limited Mr. Green to renting out only one bedroom due to concerns about neighborhood parking and the use of common areas and facilities. This restriction is legally valid…the Association's decision was a reasonable compromise that followed the law…”3
The condominium rental section, § 57-8-10.1, was itself amended in the 2025 session. It mirrors the community-association section on the exemptions, the 2009 grandfather date and the $200 fee — and carries no counterpart to § 57-8a-209(10), the internal accessory dwelling unit carve-out that bars a planned-community association from restricting an ADU rental.
What to watch next
Municipal short-term rental enforcement has moved separately. House Bill 256 of the 2025 session, effective May 7, 2025, lets a city or county that regulates short-term rentals use an online listing as evidence that a short-term rental occurred, paired with corroborating evidence.4 That is a zoning tool rather than a covenant one — a city citation does not enforce a declaration, and a declaration does not need a city ordinance — but in Park City, Summit County, Washington County and Moab the two now run alongside each other.
Related Utah HOA Topics
- S.B. 201, Real Estate Amendments, 2025 General Session (enrolled copy) ↩
- Advisory Opinion 2026-13, Wiser v. Swan Creek Village Homeowners Association (Mar. 30, 2026) ↩
- Advisory Opinion 2026-16, Green v. Vivante Homeowners Association (Apr. 14, 2026) ↩
- H.B. 256, Municipal and County Zoning Amendments, 2025 General Session (enrolled copy) ↩
Stay on top of Utah HOA law
Every week: new Utah legislation, court rulings, and regulatory developments affecting condos, planned communities, and property managers. Free.
No spam. Unsubscribe anytime.