Can a primary residence be rented out during work trips for STR?

Question

My daughter travels with work.  She is thinking of renting out her house for short term rental while she's gone to make up for some of the costs of being gone (she has some special need dogs that cost more to board). The city of Logan has information for short term rentals and require a business license and having a few other things, but all of the language sounds like if it is not her primary residence.  We haven't gotten into the world of short term rentals yet, so I'm at a loss at what is allowed, what isn't, where to look - she is going to check with her mortgage and insurance. But other than that - where do we find information with this?

Trevor Kupstas · Answer

Hi @Debbie Palmer

If the primary purpose it to defray costs for caring for pets, perhaps the below site would be helpful?

Find Pet Sitters & House Sits Worldwide | TrustedHousesitters.com

It is a site that trades pet / house sitting for free housing. I have a relative who works remotely, and he moves to different locations throughout the US and pet-sits for people who are traveling. He uses it to defray costs while experiencing new areas.

Regards, Trevor

Michael Baum · Answer

Hey @Debbie Palmer, so I am with @John Underwood on calling.

https://www.loganutah.gov/government/departments/community_d...

There are several folks listed on that site that should be able to advise.

I will say that she will essentially need to clear out all her personal and important things. All her clothes, special pics, knick-knacks, etc. She wouldn't want them getting lifted or damaged.

Probably need to move out all her food and various other things like extra cleaning supplies etc.

She will need a specialized insurance policy for short term rentals. Pretty easy to get. Make sure it covers the same things when she is in residence.

I guess the bottom line is to see if the juice is worth the squeeze here. Is she gone for 3 months at a time and then home for 2 weeks, then gone 2 months? That might make it worth it.

If she is gone a week, back for 3, gone 10 days, back for a month, I don't think it would be worth it IMHO.

Colleen F. · Answer

@Debbie Palmer also if it is a multi bedroom apartment she could just lock off her space.  She could do short term room rental so it is clear its her place still.  You wouldn't make as much but it is more convenient. My son stayed with a guy who just did STR of a second Bedroom.  You still would need to pay all the taxes and set things up completely with the town just like any STR. Tax rules federal are you can rent for I believe two weeks without it being IRS taxable.

Be clear with anyone you talk to it is her primary residence.  Insurance you check with,  but mortgage company probably doesn't matter.

Jeremy Holden · Answer

Im an investor and agent in Phoenix who operates STRS. Alot of this depends on your local and state laws. Each market has its own unique laws and regulations.

John Underwood · Answer

I would start with talking with someone from the city of Logan to see if this is allowed.

Account Closed · Answer

If you rent your house for less then 14 days per year, you do not need to report any of the income or expenses related to that. I would suggest taking advantage of that rule, unless you need to rent it out for even more time?

Ashish Acharya · Answer

Your daughter’s plan to rent her home out for a short time while she's away is a smart way to cover her travel and pet care costs.

There are income tax impacts, and she might benefit from increasing the average stay to more than seven days. This needs to be discussed with her tax advisor.

Many cities allow short-term rentals of primary residences as long as certain conditions are met, such as obtaining a business license and meeting safety requirements.

She must also check with her mortgage lender and insurance provider to ensure no restrictions and update her insurance to cover the risks of short-term rentals. I would be more concerned about the Insurance.

Lastly, she should be aware of any local taxes for STR. She can opt into the platform to pay for those. She can successfully rent her home and make the most of her time away with some preparation.

Jeremy Jareckyj · Answer

Hey there! I am local to the SLC market. Calling logan city is the first step. Is this not her primary most of the time?

I do believe Logan allows for owner occupant STR licenses.

Brooklyn McCarty · Answer

Visit your court house, city hall, etc and see what you can find out about permitting and go from there. Also try finding other hosts in the area and reaching out to them

Sarah Kensinger · Answer

It all depends on how long the work trip is. As mentioned, 14 days or less is not a problem and is known as the Augusta law. It started in Augusta, GA due to homeowners wanting to rent their homes out over the golf tournaments yet didn't want to be taxed. Anything longer than that you'll need to call the city and find out what is required, and sometimes that can take many phone calls until you get the right person. You'll also need to change insurance to a commercial policy since homeowners does not cover STR. Even if a tree fell on the house, it would not be covered because the policy was broken by the homeowner.

Lastly...and this is from an avid guest at STR... Her home can NOT look like she packed a bag and walked out. I once stayed in a property like that and while we felt safe, it was weird! Everything personal throughout the entire home needs to be packed up or locked up. This would include closets, pantry, refrigerator/freezer, etc.

Hope that helps!

Can a primary residence be rented out during work trips for STR?

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