Thinking about a short term rental in Old Town, Park City, but not sure where to start? You are not alone. Between zoning, licensing, taxes and seasonality, it can feel complex. This guide breaks it down into plain English so you can assess what is allowed, what it might earn, and how to run the numbers with confidence. Let’s dive in.
What governs STRs in Old Town
Old Town sits inside Park City’s 84060 zip code. Short term rental activity is shaped by city zoning, business licensing, state and local taxes, and any private rules set by your HOA or deed. The rules can vary block by block, so always verify for a specific parcel and building before you buy or list.
Zoning and overlays
Start by confirming the property’s zoning district and whether it is in a historic or special overlay. Overlays can add use limits, density controls, or exterior guidelines. Zoning tells you if nightly rentals are an allowed or conditional use for that parcel. Use the city’s planning and GIS resources to verify a specific address.
Licensing and permits
Many resort towns require a local business or lodging license for STRs. Expect to provide a local contact, safety details, and proof of tax compliance. Some places create separate categories for owner occupied versus non owner STRs, or set caps in sensitive areas. Check Park City’s business licensing and any short term lodging registration steps that apply to your property.
HOA and private rules
Your HOA or condo documents can be the decisive factor. Some buildings allow STRs without limits, others use booking caps or guest rules, and some prohibit nightly rentals. Review CC&Rs, bylaws, current policies, and recent meeting minutes. Confirm whether any approval or registration with the HOA is required before you accept bookings.
Taxes, fees and insurance
Short term rentals generally collect and remit lodging or transient room taxes at the city, county, and state level. Some platforms may remit certain taxes on your behalf, but you remain responsible for accurate compliance and reporting. You may also have annual business license or inspection fees. Standard homeowner policies often exclude STR use, so speak with your insurer about a vacation rental policy or an endorsement that covers guests and liability. Safety items like smoke and CO detectors, fire extinguishers, visible emergency contacts, and evacuation plans are commonly required.
Seasonality and demand in 84060
Old Town’s walkable access to Main Street and proximity to Park City Mountain helps support strong demand. That convenience often commands higher nightly rates than more remote neighborhoods, especially when on site parking is available.
Winter and Sundance
Winter is the prime revenue season, typically from late November through March. Holiday weeks and weekends push the highest rates. Sundance Film Festival in January drives a short window of extremely high demand where nightly rates and minimums often surge.
Summer and shoulder seasons
Summer brings mountain biking, hiking, festivals, weddings, and steady family travel. Average rates are usually lower than ski season, yet good calendar management still produces solid occupancy. Spring and fall shoulder periods can be slower midweek, with weekend spikes around events.
Parking and proximity value
Old Town’s narrow streets and limited on site parking are real factors. Guests often favor units with dedicated parking and easy access to Main Street or lifts. When you model revenue and set house rules, account for parking, trash, quiet hours, and snow removal.
Revenue model you can use
Model your STR with monthly detail rather than a single annual average. Old Town owners often earn a large share of revenue in winter and during peak events.
Step 1: Build ADR comps
- Identify 6 to 12 comparable listings in Old Town and the Park City core. Match bedroom count, sleeping capacity, amenities, and distance to Main Street or lifts.
- Record seasonal pricing by month or by key weeks. Track peak ski weeks, Sundance, summer, and shoulder rates.
- Note ratings and reviews. Higher rated listings typically command stronger prices and occupancy.
Step 2: Estimate monthly occupancy
- Use comparable calendars and trusted market data providers to estimate occupancy for each month.
- Multiply monthly ADR by nights in the month by occupancy to produce monthly revenue. Sum to annual.
- Watch weekend versus weekday patterns. Resort calendars often show stronger weekends.
Step 3: Map your expenses
Budget both fixed and variable costs so you understand your net. Typical categories include:
- Platform and payment fees
- Cleaning and turnover fees per stay
- Property management fee. Full service managers in resort markets commonly charge 20 to 35 percent of gross
- Utilities. Electricity, gas, water, internet, and cable
- HOA dues and any STR specific HOA fees
- Insurance premium increase for STR coverage
- Maintenance, linens, supplies, and a repairs reserve. Many owners set aside 5 to 10 percent of gross, higher for older homes
Step 4: Taxes and license costs
- Reserve for city, county, and state lodging taxes based on gross rental revenue.
- Add annual business license or inspection costs where required.
- Confirm what, if anything, platforms remit for you. Keep records for filings.
Put it together
- Gross annual revenue = average nightly rate times occupancy percent times 365.
- Net operating income before financing = gross revenue minus operating expenses minus taxes and fees.
- Cash flow to owner = net operating income minus mortgage payments and capital reserves.
Resort markets often range from about 30 to 70 percent annual occupancy depending on seasonality, quality, and calendar strategy. Cleaning fees can range widely by size, commonly around 100 to 350 dollars per turnover. Use your comps and monthly modeling to refine these assumptions.
Due diligence checklist before you buy
- Confirm parcel zoning and any Old Town historic or special overlay.
- Verify that short term rentals are allowed for the property and whether any license is needed or transferable.
- Review HOA documents and recent minutes for current rules or proposed changes.
- Check required safety items and any inspection steps.
- Confirm transient room tax registration and filing needs with city, county, and the state.
- Evaluate parking availability and winter access.
- Pull monthly comps for ADR and occupancy by bedroom count and location.
- Interview local property managers for service levels, fees, and sample P and Ls.
- Price insurance for STR use and confirm coverage details.
Operating tips to protect yield
- Use seasonal pricing and event minimums. Model Sundance and peak ski weeks separately.
- Set clear house rules for parking, noise, trash, and snow removal. Share rules before booking and in house.
- Maintain fast response times and a local contact plan for guest issues.
- Track expenses and revenue monthly. Adjust pricing and minimum stays as patterns emerge.
- Monitor city, county, and HOA policy updates. Resort communities update rules over time.
Ready to make a confident move in Old Town? With lived Park City expertise and deep operational know how, including management of hundreds of properties, you get a partner who understands both lifestyle and performance. If you want help validating zoning, building a seasonal revenue model, or exploring management options, connect with Richard Taleghani.
FAQs
Can you operate a short term rental in Old Town Park City?
- It depends on parcel zoning, overlays, and any HOA or deed restrictions, so verify permissions for the exact property with city planning, GIS, and HOA documents before you buy or list.
Do you need a business license for an Old Town STR?
- Many resort cities require a business or lodging license, local contact details, and safety compliance, so check Park City’s business licensing and any STR registration steps for your address.
How do lodging taxes work for Old Town STRs?
- STRs generally collect and remit city, county, and state lodging or transient room taxes, and while platforms may remit some taxes, you remain responsible for accurate filings and records.
When do Old Town rentals earn the most?
- Peak earnings typically occur in winter, especially holiday weeks and Sundance in January, while summer brings steady demand at generally lower average nightly rates.
What management fee should I expect in Park City?
- Full service property management in resort markets commonly ranges from about 20 to 35 percent of gross revenue, with self management reducing fees but increasing your time commitment.
How do HOAs affect STRs in Old Town?
- HOA and condo documents can permit, limit, or prohibit nightly rentals, so review CC&Rs and policies closely and confirm any required approvals or registrations with the association.
