Despite short-term rentals, or STRs, being currently prohibited in Orem under city code, a number of transient lodging options are available in the city through entities such as Airbnb or VRBO. Deputy City Attorney Jacob Summers, who led the presentation, said previous state law restricted the city’s ability to enforce or regulate many of them.

“Based on that, the city had adopted a more relaxed approach to short-term rentals and enforced based on complaints, if there was a loud party nuisance properties, i.e The GOAT House that happened in 2023,” Summers said.

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

“Do we want to maintain the status quo of maintaining a prohibition?” he said. “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?”

A city neighborhood advisory commission survey found 71% of people were strongly opposed to STRs. Summers said the city has received feedback from neighbors complaining about disturbances from STRs, including increased noise and traffic. Neighbors also said they don’t want to feel responsible for policing their neighbors, Summers said.

On the other hand, Summers said STR owners have argued to the city they have made a significant investment to own a STR in Orem, with some relying on them to pay their mortgage. He said many have said they’ve been willing to follow “reasonable regulations” to remain in operation.

The city also receives tourism tax revenue from STRs.

A working draft from city staff for STRs 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.

Alternative options were also given to maintain the ban on STRs and enforce it, or chart a new course.

“Cities from all over the state and all over the country have taken different approaches, and so the council is just trying to weigh what is the right approach for Orem,” city spokesman Pete Wolfley told the Daily Herald.

The City Council did not explicitly say which path it wanted to take but acknowledged the urgency of the issue, with Councilwoman LaNae Millett pointing out the council has been gathering feedback on STRs for the last two years.

Councilman Jeff Lambson said his knee-jerk reaction was to ban all STRs but said in getting feedback from STR owners he has softened his stance.

“I feel like there’s a place and a way to do it so that it doesn’t harm the neighbors,” he said.

Said Mayor Karen McCandless: “Those who have short term rentals, I know that they would like a resolution soon, but I also know that some of us are new (to the council) and so hopefully we can get up to speed quickly.”