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A home is pictured with Mount Timpanogos in the background Friday, Feb. 6, 2026, in Orem.

Jacob Nielson, Daily Herald

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Orem is pictured Friday, Feb. 6, 2026.

Jacob Nielson, Daily Herald

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Orem is working to codify a formal policy on short-term rentals that will give residents clearer guidance on the matter going forward.

At some point the city council will make a decision a topic that has generated strong opinions from city residents.

Some neighbors argue the lodging model commonly referred to as STRs was already illegal and that an outright ban should remain. STR owners say they were allowed to operate by the city and that Orem would go against its word by banning their properties.

Deputy City Attorney Jacob Summers addressed the issue in a Jan. 27 work session, and stated that STRs are currently not allowed based on Orem city code 22-19-1, which prohibits transient lodging in the city.

However, he said previous state laws prevented the city’s ability to enforce or regulate many of the short-term rentals, leading the city to adopt a “more relaxed approach” to enforcing them based on complaints.

State code changed last year with the approval of H.B. 256, giving cities greater authority to regulate short-term rentals, which Summers said prompted Orem to determine a more definite plan going forward.

“Do we want to maintain the status quo of maintaining a prohibition?” Summers said at the meeting. “Do we want to create some sort of a licensing program? And if so, how do we balance the interest between neighborhoods and STR operators?”

Two members of the Orem Short-Term Rental Alliance, or OSTRA, spoke to the Daily Herald on the condition of anonymity and said they both live in Orem and purchased properties to lease out as short-term rentals after they had received an allowance from the city to do so.

They shared a past text message they said came from the city that stated: “Orem City does not have specific ordinances related to short-term rentals but follow the state statutes. The only thing the city requires is that we list the occupancy of the property as a short-term rental and an annual landlord license fee of $50 applies.”

Many STR owners believe they followed city rules — from getting permission to operate their businesses to ensuring their guests follow city rules — yet are at risk of losing important investments.

“The biggest thing you can invest in in life is your home,” one OSTRA member said. “When you invest in that – and you invest after the city gives you approval — and you follow these things, then it’s heartbreaking.”

The other person added: “We came in good faith to the city. For them to now be saying we’re illegal … now all the neighbors hate us and think we’re this crazy illegal party house, when that’s not the case at all.”

Amy Green, chair of Orem’s Neighborhood Advisory Commission, addressed the council in the Jan. 27 work session, where she acknowledged that not all STR owners have created challenges, but said that many of them have. She said the majority of the commission is not in favor of changing the existing law and keeping STRs banned.

“This position is grounded in real experience within our city, as well as lessons learned from other communities,” Green said.

Common issues she cited included guests exceeding the occupancy requirements, parking and congestion, noise disturbances, trash accumulation and situations where the property owner cannot be reached.

“These impacts directly affect the quality of life for the nearby residents, and they place a strain on neighborhoods and their cohesiveness,” Green said in the meeting.

One individual who has received several emails expressing concerns from STR owners and neighbors is Orem Mayor Karen McCandless. Just entering her second month in office, she is undetermined on a definitive stance, stating she does not support an outright ban but that she wants some type of regulation.

“What does that look like? And how do we do it? And what resources do we have to enforce and to regulate and preserve neighborhood character and to build connection?” McCandless said.

The Mayor recognized the stress of STR owners, some who she said have stated in public meetings that they feel like a criminal. She assured them they are not.

“It’s hard when they feel that they’ve come in and they’ve done everything they’re supposed to do and everything the city’s told them to do, and then to find out that what they’re doing is not legal, then that hurts,” McCandless said.

She said it’s an ongoing process that the council is trying to navigate.

“We as a council recognize the urgency in getting this resolved,” she said.

The city listed three paths it can take on STRs, one being maintaining, clarifying and enforcing the ban, and another charting a new course.

A more specific strategy would require STR operators to apply for a license, pay a fee and provide a parking plan to ensure off-street parking, among other documents.

STRs would be limited to overnight stays — no events — and be single-family use, or up to eight individuals. Nonowner STR licenses would be subject to certain geographic restrictions.

The short-term rental owners are open to having some regulations, and said that STRs who are breaking basic rules like noise and trash violations should be punished. They are opposed to the cap at eight occupants per residence, though, arguing there are existing Airbnb’s that are large homes designed to accommodate bigger groups.

“We want a permitting system,” one of the OSTRA members said. “It benefits both parties in the long run, and we’re okay being permitted and having all these regulations, but you can’t a do a whole blanket ban, or then turn and say you can do it, but you can only allow eight people when we have houses that can host more.”