Thinking about buying a condo or townhome in Old Town, Park City, for nightly rentals? The income can be compelling, but a missed rule or assumption can derail your plans fast. Old Town operates under two sets of rules that both affect short-term rentals, and each can change how you use the property.
In this guide, you’ll learn how nightly rentals are regulated in Old Town, what to verify with the city and your HOA, the typical permitting steps, and the due-diligence items to review before you write an offer. You’ll also get a practical checklist to protect your returns and avoid costly surprises. Let’s dive in.
Why Old Town rules matter
Old Town is the historic core of Park City and a high-demand tourist area with strong winter and summer peaks. That creates great revenue potential and tight community oversight. Parking, noise, trash, and guest turnover are frequent concerns, so rules and enforcement are active.
Two layers of regulation apply to nightly rentals. Public rules come from Park City and state tax authorities. Private rules come from your building’s HOA. Both can restrict or condition nightly rentals. If you assume rentals are allowed because you see lots of listings online, you risk fines, lost income, or being forced to switch to longer-term occupancy.
Two rulebooks you must follow
- Municipal rules: Zoning, business licensing, fire and life-safety, and lodging tax compliance. These are enforced by Park City and state/local tax authorities.
- HOA rules: CC&Rs, bylaws, building rules, rental addenda, amenity policies, and enforcement procedures.
You need approval from both to operate legally. Do not rely on marketing, anecdotes, or active platform listings. Get confirmation in writing.
City and zoning: what to confirm
Zoning and overlays
Start with Park City Planning and Zoning. Ask for the parcel’s zoning designation and whether nightly rentals are an allowed use, a conditional use, or prohibited. Some historic-core areas have overlays that add special rules. Buildings with pervasive nightly rentals can trigger a “hotel/motel” use classification, which may require different building standards.
Verify whether the city has caps or quotas on permits in that zone, any owner-occupancy conditions, and parking requirements that apply to your property. Old Town parking is limited, and some permits require a specific allocation or plan.
Permits, licenses, and taxes
Expect to register your short-term rental with the city and to renew on a regular cycle. You will likely need a business license to operate, and you may need fire or life-safety inspections that confirm smoke and CO detectors, egress, and related items.
Register for lodging taxes, often called a Transient Room Tax. Owners are usually responsible for collecting and remitting these taxes and reporting occupancy. Confirm which agencies you must file with and how often.
Enforcement and penalties
Code enforcement typically responds to neighbor complaints. Common actions include fines, permit suspension, revocation, or stop-use orders. If your HOA prohibits nightly rentals, the association can pursue private remedies, including fines or limiting amenity access. Document your compliance steps and response plan.
HOA rules: building-level limits
What to read in the CC&Rs
Request the full CC&Rs, bylaws, rules and regulations, and any rental addenda from the HOA or management company. Policies range from permissive to highly restrictive. Some HOAs:
- Prohibit rentals shorter than a minimum term, often 30 days.
- Allow short-term rentals but require guest registration, owner-responsible policies, occupancy limits, or a local responsible party.
- Cap the percentage of units allowed as nightly rentals or require board approval.
Ask about amenity access for guests, parking passes, and any extra fees. Clarify fines and how enforcement escalates.
How HOAs change rules
HOAs amend CC&Rs by owner vote, often discussed at annual meetings. Review board meeting minutes for the past 12 to 24 months to see enforcement trends, planned restrictions, or special assessments that could affect your operations. Pay attention to any proposed moratoriums or caps on nightly rentals.
Practical realities in Old Town
Old Town buildings vary widely. Some have long-standing nightly rental activity with few extra restrictions. Others are strict. Historic properties may have additional requirements that affect renovations or code upgrades. Written clarity is essential.
Step-by-step permitting and compliance
Follow a disciplined workflow. Exact steps vary, so confirm details with Park City and your specific HOA.
- Confirm zoning and use
- Contact Park City Planning for the parcel’s zoning and ask if nightly rentals are allowed or require a conditional use permit.
- Review HOA governing documents
- Obtain CC&Rs, bylaws, rules, rental addenda, and recent board minutes. Confirm guest policies, caps, and enforcement procedures.
- Apply for STR permit or registration
- Provide required documents, which may include owner information, a local contact, a parking plan, and a basic floor plan.
- Secure business license and tax registration
- Register for any required business license and lodging tax accounts. Clarify filing frequency and data reporting.
- Complete safety compliance
- Schedule any required fire or life-safety inspections. Install detectors and equipment, and post occupancy information if required.
- Update insurance and lender disclosures
- Verify that your insurance covers nightly rental operations. Check for mortgage restrictions and notify your lender if needed.
- Set up operations
- Establish tax collection and remittance processes, guest instructions, parking logistics, a noise and trash plan, and local on-call support.
- Maintain renewals and records
- Track annual renewals, occupancy data, tax filings, and complaint resolution. Keep records accessible in case of audits or investigations.
Buyer due diligence checklist
Use this before you make an offer on a condo or townhome in Old Town.
Documents to request
- CC&Rs, bylaws, rules, and any rental addenda.
- HOA meeting minutes for the last 12 to 24 months, plus any enforcement records related to rentals.
- HOA budget, reserve study, current dues, and any pending special assessments.
- Written rental policies, guest registration procedures, and parking rules.
- Building certificate of occupancy and any construction or renovation permits that affect use.
- Unit rental history and occupancy data, including P&L statements, platform reports, and tax returns if available.
- Transient Room Tax filings and proof of compliance.
- Notices of violations, complaints, or litigation involving the unit or building.
- Insurance policy terms and claims history for the unit and building.
- Any active lease or management agreements tied to the unit.
Verification steps and questions
- Confirm zoning and whether any code changes or pending ordinances affect short-term rentals in Old Town.
- Ask the HOA about any moratorium, cap, or pending amendment that could limit STRs.
- Ask how many units currently operate as STRs and whether any are grandfathered or unpermitted.
- Verify parking allocations, guest parking rules, and any city permits needed for parking.
- Check whether amenities are restricted for paying guests or subject to extra fees.
- Request written procedures for guest registration and sample communications with the HOA.
- Compare online market data for similar units with actual HOA policies. Active listings do not guarantee legal permission.
- Confirm whether lenders, underwriters, or title companies have placed restrictions due to commercial-use classification.
Red flags
- CC&Rs that prohibit rentals under a stated minimum term.
- Ongoing or recent litigation between the HOA and owners about STRs.
- A high number of unpermitted or noncompliant listings in the building.
- Insufficient HOA reserves relative to planned assessments.
- Mortgage or insurance clauses that restrict nightly rentals or require higher premiums.
Financial and operational considerations
Revenue and seasonality
Old Town is seasonal. Winter ski months often carry the highest rates and occupancy, and summer events can create secondary peaks. Build projections with conservative occupancy and realistic seasonal pricing. Plan for off-season dips.
Costs that affect returns
Nightly rentals have elevated operating costs. Expect higher insurance premiums, management fees if you use a professional manager, cleaning and linen services, utilities, HOA dues and assessments, local lodging taxes, platform commissions, and any code-compliance upgrades.
Financing, insurance, and resale
Some lenders treat units with significant nightly rental income as investment or commercial properties, which can change loan terms. STR restrictions can reduce your buyer pool at resale and affect value. Insurance for STR use can be more expensive, so get quotes early.
Risk management
Have a local on-call contact, clear house rules in your listing and guest book, guest screening standards, and a plan to respond quickly to neighbor concerns. Proactive communication reduces complaint-driven enforcement.
Who to contact for definitive answers
- Park City Planning and Zoning for parcel zoning, overlays, and conditional use questions.
- Park City Business Licensing and Code Enforcement for permit and enforcement requirements.
- Utah State Tax Commission and Summit County tax offices for transient room tax registration and filings.
- The HOA management company and board for CC&Rs, rules, meeting minutes, and enforcement history.
- Local property managers with Old Town STR experience for market norms and operations.
- A local real estate attorney for CC&R interpretation and risk assessment.
When you contact the city or HOA, request confirmation in writing. Ask for a letter or email that states whether nightly rentals are permitted for your specific unit, what permits or fees apply, and whether any changes are pending.
Make your offer strong and protected
You can run a successful nightly rental in Old Town with the right process. The key is disciplined verification and documented approvals from both the city and the HOA. That reduces enforcement risk, protects your cash flow, and keeps neighbor relationships positive.
If you want a structured path from first showing to final permit, we can help you secure the documents, coordinate with municipal offices and the HOA, and build reasonable timelines into your offer. Our veteran-owned team is known for detail-driven contracts and calm, clear communication. When you are ready to buy or evaluate a specific building, reach out to the Lipich Realty Group to move forward with confidence.
FAQs
Are nightly rentals allowed in Old Town Park City right now?
- It depends on the property’s zoning and the building’s HOA rules, so confirm both in writing with Park City and the HOA before you buy.
Do HOA or city rental permissions transfer to a new owner?
- Some approvals attach to the unit, others require new registration or permits, so verify transferability and renewal steps with the city and HOA.
What taxes apply to a nightly rental in Old Town?
- Owners usually collect and remit lodging taxes, often called Transient Room Tax, and must follow filing rules set by state and local tax offices.
How long does it take to get an STR permit in Park City?
- Timelines vary by documentation, inspections, and workload at city offices, so ask Business Licensing for current processing times and requirements.
What happens if neighbors complain about noise or parking at my STR?
- Code enforcement may investigate and issue fines or orders, so have clear house rules, local contacts, and a response plan to resolve issues quickly.
What HOA documents should I review before buying for nightly rentals?
- Request CC&Rs, bylaws, rules, rental addenda, recent meeting minutes, enforcement records, and the HOA budget and reserve study for complete context.
