Utah Code § 10-1-203.5 § 10-1-203.5

Disproportionate rental fee -- Good landlord training program -- Fee reduction.

In Force
Verified 10/16/2026 · Next check 10/23/2026
effective 10/16/2026UtahFees & Charges

Operative Text

Utah Code § 10-1-203.5 § 10-1-203.5
Disproportionate rental fee -- Good landlord training program -- Fee reduction.

(1) As used in this section:

(a) "Business" means the rental of one or more residential units within a municipality.
(b) "Disproportionate rental fee" means a fee adopted by a municipality to recover its disproportionate costs of providing municipal services to residential rental units compared to similarly-situated owner-occupied housing.
(c) "Disproportionate rental fee reduction" means a reduction of a disproportionate rental fee as a condition of complying with the requirements of a good landlord training program.
(d) "Exempt business" means the rental of a residential unit within a single structure that contains:
(i) no more than four residential units; and
(ii) one unit occupied by the owner.
(e) "Exempt landlord" means a residential landlord who demonstrates to a municipality:
(i) completion of any live good landlord training program offered by any other Utah city that offers a good landlord program;
(ii) that the residential landlord has a current professional designation of "property manager"; or
(iii) compliance with a requirement described in Subsection (6).
(f) "Good landlord training program" means a program offered by a municipality to encourage business practices that are designed to reduce the disproportionate cost of municipal services to residential rental units by offering a disproportionate rental fee reduction for any residential landlord who:
(i) (A) completes a landlord training program provided by the municipality; or
(B) is an exempt landlord;
(ii) implements measures to reduce crime in rental housing as specified in a municipal ordinance or policy; and
(iii) operates and manages rental housing in accordance with an applicable municipal ordinance.
(g) "Municipal services" means:
(i) public utilities;
(ii) police;
(iii) fire;
(iv) code enforcement;
(v) storm water runoff;
(vi) traffic control;
(vii) parking;
(viii) transportation;
(ix) beautification; or
(x) snow removal.
(h) "Municipal services study" means a study of the cost of all municipal services to rental housing that:
(i) are reasonably attributable to the rental housing; and
(ii) exceed the municipality's cost to serve similarly-situated, owner-occupied housing.
(i) "Residential landlord" means:
(i) the owner of record of residential real property that is leased or rented to another; or
(ii) a third-party provider that has an agreement with the owner of record to manage the owner's real property.
(2) The legislative body of a municipality may charge and collect a disproportionate rental fee on a business that causes disproportionate costs to municipal services if the municipality:

(a) has performed a municipal services study; and
(b) adopts a disproportionate rental fee that does not exceed the amount that is justified by the municipal services study on a per residential rental unit basis.
(3) A municipality may not:

(a) impose a disproportionate rental fee on an exempt business;
(b) require a residential landlord to deny tenancy to an individual based on the individual's criminal history, unless a facility that houses parolees upon release from prison or houses probationers who have violated the terms of their probation is located within the municipality;
(c) without cause and notice, require a residential landlord to submit to a random building inspection;
(d) unless agreed to by a residential landlord and in compliance with state and federal law, collect from a residential landlord or retain:
(i) a tenant's consumer report, as defined in 15 U.S.C. Sec. 1681a, in violation of 15 U.S.C. Sec. 1681b as amended;
(ii) a tenant's criminal history record information in violation of Section 53-10-108; or
(iii) a copy of an agreement between the residential landlord and a tenant regarding the tenant's term of occupancy, rent, or any other condition of occupancy;
(e) require that any documents required from the landlord be notarized; or
(f) prohibit a residential landlord from passing on to the tenant the license or disproportionate fee.
(4) Nothing in this section shall limit:

(a) a municipality's right to audit and inspect an exempt residential landlord's records to ensure compliance with a disproportionate rental fee reduction program; or
(b) the right of a municipality with a short-term or vacation rental ordinance to review an owner's rental agreement to verify compliance with the municipality's ordinance.
(5) Notwithstanding Section 10-11-2, a residential landlord may provide the name and address of a person to whom all correspondence regarding the property shall be sent. If the landlord provides the name and address in writing, the municipality shall provide all further correspondence regarding the property to the designated person. The municipality may also provide copies of notices to the residential landlord.
(6) In addition to a requirement or qualification described in Subsection (1)(e), a municipality may recognize a good landlord training program described in its ordinance.
(7) (a) If a municipality adopts a good landlord program, the municipality shall provide an appeal procedure affording due process of law to a residential landlord who is denied a disproportionate rental fee reduction.
(b) A municipality may not adopt a new disproportionate rental fee unless the municipality provides a disproportionate rental fee reduction.
(8) A property manager who represents an owner of property that qualifies for a municipal disproportionate rental fee may not be restricted from simultaneously representing another owner of property that does not qualify for a municipal disproportionate rental fee.
Source: Legislative text reproduced verbatim
Plain English

Utah Code Ann. § 10-1-203.5 allows municipalities to charge residential landlords a fee to offset the higher cost of providing city services to rental properties compared to owner-occupied homes, but only after completing a formal cost study. Small owner-occupied buildings with four or fewer units are exempt from the fee. Municipalities that adopt this fee must also offer a reduction program for landlords who complete approved training, reduce crime in their rentals, and comply with local ordinances. Several protections limit what municipalities can require of landlords, including restrictions on random inspections and collection of tenant records.

Written by anthropic/claude-sonnet-4.6 · Reviewed on October 16, 2026

Plain English — not legal advice.

For Property Managers

Under § 10-1-203.5, operators of residential rentals in Utah municipalities that have adopted a disproportionate rental fee should be aware that fee reductions are available through a good landlord training program. Compliant operators typically complete an approved training course or hold a qualifying property manager designation, implement crime-reduction measures, and manage properties in accordance with local ordinances. Landlords who own a structure of four or fewer units and occupy one unit themselves are classified as exempt businesses and are not subject to the fee.

General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.

For Tenants

Utah Code Ann. § 10-1-203.5 includes protections that affect tenants indirectly. Municipalities are prohibited from requiring landlords to deny tenancy based on an applicant's criminal history in most circumstances, and landlords cannot be compelled to hand over tenant consumer reports or lease agreements without consent. Tenants who believe a municipality or landlord may be acting outside these boundaries can consult a tenant-rights organization or review local ordinances to understand available complaint or appeal processes.

General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.

Generated October 16, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.

Effective Timeline

Current
Oct 16, 2026
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References Out

Rules and statutes cited by this regulation

Utah Code § 53-10-108
Not yet ingested
Utah Code § 10-11-2
Not yet ingested

References In

Rules and statutes that cite this regulation

Utah Code § 10-1-203.5
Utah Code § 10-1-203.5

Related Rules

§ 151.16
RESEARCH SERVICES
§ 151.18
ADDITIONAL SERVICES CONTRACTS
§ 6.20
SEVERABILITY

Source Information

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