Can an HOA Restrict Rentals in Utah?

What Utah law says

Utah has one of the most detailed rental-restriction statutes in the country. Section 57-8a-209 of the Community Association Act provides that, subject to its conditions, 'an association may: (i) create restrictions on the number and term of rentals in an association; or (ii) prohibit rentals in the association.' A parallel provision (§ 57-8-10.1) gives condominium associations the same power. That means a Utah HOA can legally do what many states leave uncertain — impose a 5% cap like SunRiver, a 20% cap like The Ridge at St. George, or an outright ban.

The statute's bargain is procedural and protective. Rental restrictions or prohibitions must be created in the recorded declaration of covenants (or a recorded amendment) — a board may set, by rule alone, only a minimum lease term of six months or less. Any ban or cap must also include exemptions: deployed military owners, lots occupied by the owner's parent, child, or sibling, owners relocated by an employer for two years or less, entity-owned lots occupied by a 25%-plus voting owner, and estate-planning trusts. And owners already renting when the restriction is recorded may keep renting until they occupy the lot or the entity ownership changes — a built-in grandfather clause.

Utah also sharply limits how associations can police renters. Except in narrow circumstances, an HOA may not require approval of a prospective renter, copies of rental applications, credit reports, background checks, or age verification; may not force owners onto an association lease form or require association approval of the lease; and may not impose extra assessments, fines, or fees just because a lot is rented. The one fee exception: an association that permits at least 35% of its lots to be rentals may charge up to $200 per year, with an accounting of the added administrative cost. A rental restriction can skip the exemptions only with unanimous approval of all lot owners.

• Utah Code § 57-8a-209 — Authorizes HOAs to restrict the number/term of rentals or ban rentals entirely via recorded declaration; requires military, family, relocation, entity, and trust exemptions plus grandfathering; bars tenant-approval and extra-fee schemes.
• Utah Code § 57-8-10.1 — Mirror provision for condominium associations of unit owners, with the same rental-restriction framework.

What HOAs in Utah can and can’t do

HOAs generally can:

• Prohibit rentals entirely or cap the number/percentage of rentals — but only through the recorded declaration or a recorded amendment
• Set a minimum lease term of six months or less by board rule alone
• Grandfather existing renters when a new restriction is recorded (they may continue until the owner occupies the lot)
• Charge a rental lot up to $200/year only if the association permits at least 35% rentals, with a cost accounting
• Adopt a rental ban without the statutory exemptions if every lot owner unanimously approves it

Limits under Utah law:

• Require association approval of prospective renters or of the lease agreement (§ 57-8a-209(8))
• Demand rental applications, credit reports, background checks, or age-verification documents from renters
• Impose extra assessments, fines, or fees on a lot merely because it is rented (outside the 35%/$200 exception)
• Create a substantive rental ban or cap by board rule — it must be in the recorded declaration

Things to know in Utah

• Retroactivity cut-off: for associations formed before May 12, 2009, the rental-restriction framework applies only if the association adopts or amends a rental restriction on or after May 12, 2015 — older, untouched restrictions sit outside several of these requirements.
• Family occupancy is broadly exempt: a lot occupied by the owner's parent, child, or sibling is exempt from rental bans, caps, and rental fees — so 'renting to family' is protected even in no-rental communities.
• The 35%/$200 fee rule is a two-way gate: associations below 35% rentals cannot charge rental fees at all, and even qualifying associations must detail the added administrative expenses in an accounting to the owner.
• Daybreak-style occupancy rules are the Utah norm: 12-month owner-occupancy before a first lease plus one-rental-unit-per-owner limits fit comfortably inside what § 57-8a-209 authorizes.

Rental rules we’re seeing in Utah

Real examples from the HOA411 database:

• SunRiver, St. George — This 55+ community's recorded CC&Rs impose a 5% rental cap with a 2% hardship exception and a waitlist — a classic Utah-style cap adopted at the declaration level as § 57-8a-209 requires.
• The Ridge at St. George, St. George — Governing documents set a 20% lease cap, a 12-month ownership requirement before leasing, and a 6-month minimum lease term — all squarely within the statute's authorized restrictions.
• Daybreak, South Jordan — Official disclosures require 12 months of owner occupancy before the first lease and limit each owner to one rental unit — the owner-occupancy waiting period Utah communities commonly use.
• Traverse Mountain, Lehi — CC&Rs Sec. 9.12 require a minimum 6-month initial lease term and prohibit short-term/nightly rentals — the maximum minimum-term a Utah board could also have set by rule alone.

Frequently asked questions

Can a Utah HOA ban rentals completely?

Yes. Utah Code § 57-8a-209 expressly authorizes associations to 'prohibit rentals in the association.' The ban must be in the recorded declaration or a recorded amendment, must include the statute's exemptions (military, family occupancy, job relocation, entity owners, estate trusts), and cannot apply to owners already renting without grandfathering.

Can my Utah HOA reject my tenant or run a credit check on them?

No. The statute flatly prohibits requiring association approval of a prospective renter and bars demands for rental applications, credit reports, background checks, or age verification. The only narrow exceptions are a court order or verifying compliance with a lawful occupancy restriction (like an age-restricted community).

Can a Utah HOA charge me extra because my home is a rental?

Generally no. Extra assessments, fines, or fees imposed just because a lot is rented are prohibited. The exception: if the association permits at least 35% of lots to be rentals, it may charge up to $200 per year, and only with an accounting showing the added administrative expenses.

I was already renting when my HOA passed a rental ban. Am I grandfathered?

Yes, under § 57-8a-209. An owner with a rental in place before the restriction is recorded may continue renting until the owner occupies the lot, or until the entity/trust holding the lot changes its ownership or control structure. The only way around grandfathering is unanimous owner approval of the ban.

Does the Utah rental law apply to my older HOA?

If your association was formed before May 12, 2009, the statute's restrictions on rental rules apply only if it adopted or amended a rental restriction on or after May 12, 2015. Pre-2009 communities that never touched their rental rules sit outside much of the framework.

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General information only, not legal advice. HOA rules change — confirm directly with the HOA or a Utah attorney before buying or leasing.