Salt Lake City now requires all landlords to get business license

SALT LAKE CITY — All landlords are now required to get annual business licenses to operate in Utah's capital city — even those with just one or two rentals.

Changes to the city's landlord/tenant initiative that took effect Sept. 1 require anyone renting out a home, condominium, townhouse, duplex, apartment or even a basement to pay a $110 per year to become licensed.

On top of that, landlords can be assessed a fee of $342 per unit — unless they take part in the city's "good landlord" program, which rewards good management practices with discounted fees. Those who complete the landlord training will pay just $20 per unit.

The program has been in place in Salt Lake City since 2009, but changes adopted by the City Council in June as part of the city's 2011-12 budget made the law applicable to one- and two-unit landlords.

Salt Lake is one of several cities along the Wasatch Front that have implemented such programs in recent years to make sure landlords are conducting business professionally and legally.

"It's to combat people who deal in substandard housing," said Frank Gray, Salt Lake City's community and economic development director.

Ogden has had a good landlord program in place since 2004. In that first year, landlords participating in the program saw an 11.6 percent reduction in crime at their properties, city officials said.

According to the Utah Apartment Association, the programs have helped reduce the number of so-called slumlords — landlords who shirk their responsibilities to tenants and the surrounding community.

In Salt Lake City, there are an estimated 37,000 rental units, including 14,000 single-family homes, duplexes or triplexes. City officials want to know who is renting out those properties and make sure they're following city ordinances.

The city's 2011-12 budget includes $1.8 million in additional revenue as a result of changes to the program. Some residents have complained that requiring one- and two-rental landlords to obtain a business license is just another way for the city to boost its revenue.

However, Gray said all money brought in from the fees will go toward covering the cost of administering the good landlord program.

In addition, rental properties create a disproportionately higher cost for city services — such as police and code enforcement, city officials said. The program passes those costs onto landlords.