Renting Out Your Property in Utah: A Guide for Landlords

Familiarize yourself with Utah's landlord-tenant laws, particularly the Utah Fit Premises Act and the Utah Code Title 57 Chapter 22. Understanding these laws will help you avoid legal issues and ensure compliance with state regulations regarding security deposits, maintenance responsibilities, eviction procedures, and tenant rights.

Check with your local municipality in Utah to determine if you need a business license to operate a rental property. Requirements vary by city and county. For example, Salt Lake City requires landlords to obtain a business license for rental properties. Contact your local government office or check their website for specific requirements and fees.

Create a comprehensive rental application to screen potential tenants. Include sections for personal information, rental history, employment details, income verification, references, and authorization for background and credit checks. Ensure your screening process complies with Fair Housing laws, which prohibit discrimination based on protected classes.

Create a legally compliant lease agreement that includes all required terms under Utah law. Include details about rent amount and due date, security deposit terms, lease duration, maintenance responsibilities, rules regarding entry (24-hour notice required in Utah), utilities, pet policies, and grounds for termination. Consider having an attorney review your lease to ensure compliance with state laws.

Develop a detailed checklist to document the condition of the property before move-in and after move-out. Include all rooms, fixtures, appliances, and exterior areas with space to note condition and take photos. This documentation is crucial for security deposit disputes and helps comply with Utah's requirement to provide an itemized list of deductions if withholding any portion of the security deposit.

For properties built before 1978, federal law requires landlords to disclose known information about lead-based paint hazards. Provide tenants with an EPA-approved pamphlet on lead-based paint hazards and include a disclosure form with your lease. Even if you don't know of any lead paint in the property, the disclosure is still required for pre-1978 buildings.

Prepare a receipt for security deposits that includes the amount received, date of receipt, and a statement explaining that the deposit will be held in accordance with Utah law. Utah does not require security deposits to be held in separate accounts, but you must return deposits within 30 days of lease termination with an itemized list of any deductions.

Create a document outlining house rules and regulations that will be incorporated into your lease agreement. Include policies on noise, guests, smoking, maintenance expectations, trash disposal, parking, and other important aspects of tenancy. Ensure these rules are reasonable and don't violate tenant rights under Utah law.

Develop a form to notify tenants when you need to enter the property. Utah law requires at least 24 hours' notice before entering an occupied rental unit except in emergencies. This form should include the date and time of planned entry, the purpose, and contact information if the tenant needs to reschedule.

If you'll be collecting rent, you may need to register with the Utah State Tax Commission for tax purposes. While Utah doesn't have a specific rental tax, rental income must be reported on your income taxes, and you may need to collect and remit sales tax if providing certain services. Consult with a tax professional about your specific situation.

Secure landlord insurance (also called rental property insurance) that covers the building, liability protection, and potentially lost rental income. Standard homeowner's insurance doesn't cover rental activities, so this specialized policy is essential. Shop around for quotes from multiple providers to find appropriate coverage for your property.

Arrange for necessary inspections to ensure the property meets all health and safety requirements. Utah law requires rental properties to be maintained in a condition that is fit for human habitation. This may include checking smoke detectors, carbon monoxide detectors, heating systems, plumbing, electrical systems, and structural elements.

Understand federal and Utah fair housing laws to avoid discrimination in your rental practices. These laws prohibit discrimination based on race, color, national origin, religion, sex, familial status, and disability. Utah law also prohibits discrimination based on source of income, including housing vouchers. Ensure your advertising, tenant screening, and rental policies comply with these requirements.