Thinking about buying in Bear Hollow with plans to rent nightly? The rules can make or break your investment. Between HOA policies, city or county ordinances, and state tax obligations, there is a lot to confirm before you write an offer. This guide shows you exactly what to check, who to ask, and how to protect your goals when you buy.
Let’s dive in.
How nightly rentals are regulated
Short-term rentals in Bear Hollow are controlled by three layers. You need a green light from each layer to operate legally.
The three layers to verify
- Government rules: City or county ordinances, permits, and safety standards. State tax registration and lodging taxes.
- HOA rules: CC&Rs, Bylaws, and Rules and Regulations that may allow, restrict, or prohibit nightly rentals.
- Practical contracts: Management agreements, platform policies, insurance, and any recorded covenants on title.
If any layer says no, nightly renting is restricted or prohibited. Do not rely on listing remarks or past rental activity alone.
Step 1: Confirm jurisdiction and zoning
Start by confirming whether the property is inside Park City limits or in unincorporated Summit County. The jurisdiction determines which short-term rental ordinance and permit system applies. Your parcel’s zoning also matters because some zones allow nightly rentals while others limit them.
- Ask planning staff to confirm jurisdiction and zoning for the specific parcel.
- Request details on whether short-term rentals are permitted, conditionally allowed, or prohibited in that zone.
- Ask about recent or upcoming rule changes, caps, or moratoria that could affect rentals.
Step 2: Understand permits and taxes
Nightly rentals usually require permits and tax registration at multiple levels. Plan time and budget for this.
Utah state tax registration
Utah typically requires hosts to collect state sales tax and transient room taxes on short-term stays. Register with the Utah State Tax Commission and set up remittance before your first booking. If the seller already operates nightly, ask for proof of registration and remittance history.
City or county permits and safety
Most local governments require short-term rental permits or registrations. Ask whether permits are required, how inspections work, and what safety features are needed. Also confirm whether a permit transfers at sale or if you must apply again as the new owner.
Local lodging and resort taxes
Expect local lodging taxes on top of state taxes. Verify rates and filing schedules with the city or county and the Utah State Tax Commission. Build these costs into your pro forma.
Step 3: Read the HOA documents
In resort neighborhoods like Bear Hollow, HOA rules can be the deciding factor. Get the full HOA document set and review it carefully.
Must-have HOA documents
- CC&Rs
- Bylaws and Articles of Incorporation
- Most recent Rules and Regulations
- Any rental policy or lease addendum
- Leasing approval forms and procedures
- Meeting minutes for the last 12 to 24 months
- Current budget, financials, and reserve study
- Management company contact and agreement
- Insurance requirements for owners who rent
- Any recorded covenants or restrictions beyond the CC&Rs
Ask the HOA or property manager for a written statement confirming the current short-term rental policy, any pending amendments, and whether there are open violations on the unit.
Common HOA rules to expect
- Minimum stay requirements or long-term-only rules
- Caps on the number of nightly rental units or nights per year
- Owner-occupancy clauses for hosts
- Board approval or registration for each rental unit
- Mandatory management standards or an approved vendor list
- Guest registration, quiet hours, and parking limits
- Additional fees or assessments for nightly rentals
- Insurance endorsements naming the HOA as additional insured
Policies may differ across Bear Hollow sub-associations. Confirm whether your property is in the master association, a village or phase sub-association, or both.
Enforcement and transfer questions
- How does the HOA enforce rules and fines? Do they monitor platforms?
- Is an existing HOA rental registration transferable at sale?
- Are there recent or proposed rule changes in the minutes?
Step 4: Financial and lending checks
Nightly rental properties can have different underwriting and insurance needs. Confirm these early to avoid setbacks.
Income and expense review
- Ask for rental history, occupancy, and seasonality if the unit has operated as a nightly rental.
- Confirm all carrying costs: HOA dues, permit or registration fees, increased insurance premiums, utilities, and cleaning.
- Model taxes and management fees to understand net income.
Lender, title, and insurance
- Verify with your lender that the loan product allows short-term rental use.
- Ask your title officer to flag any recorded restrictions on rentals.
- Confirm required insurance coverage and any HOA-mandated endorsements.
Step 5: Operational realities in Bear Hollow
Even if rules allow nightly rentals, day-to-day logistics matter. Look closely at how your guests will access and use the property.
Parking, access, and amenities
- Confirm assigned parking and guest vehicle limits.
- Understand gate, key, and guest pass procedures.
- Check trash, snow removal, and common-area rules for transient guests.
Management and guest experience
- Clarify if a specific management company is required or recommended.
- Ask whether the HOA needs an on-file emergency contact for your unit.
- Understand quiet hours and neighbor expectations to avoid complaints.
Red flags and how to protect your deal
Watch for these issues and plan your strategy.
- CC&Rs prohibit short-term rentals or require stays longer than 30 days
- Non-transferable municipal permit or open violations under review
- HOA minutes show active efforts to tighten rental rules
- Seller cannot document tax registration or remittances
- Significant fines, litigation, or special assessments tied to rentals
How to protect yourself:
- Include a contingency for HOA and permitting approval in writing
- Request credits if advertised rental ability cannot be continued
- Consider an escrow holdback until required approvals or transfers are complete
Buyer’s quick checklist
Use this checklist before you waive contingencies.
- Confirm jurisdiction: Park City or Summit County
- Verify zoning allows short-term rentals for the parcel
- Ask about permit requirements, transferability, inspections, and safety items
- Register for state sales and transient room taxes if you plan to operate
- Obtain full HOA docs and a written rental-policy statement
- Review minutes for the last 12 to 24 months for rule changes
- Collect rental history, occupancy, and management details
- Verify lender acceptance of nightly rental use
- Check title for recorded restrictions and confirm insurance requirements
- Review parking, guest access, and amenity rules for transient stays
What to do next
- Request the complete HOA document packet and have it reviewed for rental clauses.
- Contact the HOA or property manager for written confirmation of current policy and any pending amendments.
- Confirm municipal jurisdiction and ask planning staff about permits, transfer rules, and inspections.
- Register with the Utah State Tax Commission for applicable lodging and sales taxes.
- Verify lending terms, title restrictions, and insurance needs with your lender and title officer.
If you want a local partner to help you navigate Bear Hollow’s layers of approvals, review documents, and model rental potential, reach out to Jason J. Real Estate. You will get clear guidance and a plan that fits your goals.
Ready to talk through your Bear Hollow options? Let’s Connect with Jason J. Real Estate.
FAQs
Are nightly rentals allowed in Bear Hollow?
- It depends on both the HOA’s rules and the applicable city or county ordinance. You need approval at each layer before you can operate.
Do existing nightly rental rights transfer to a buyer?
- Not always. Some municipal permits and HOA approvals are unit-specific and may require reapplication by the new owner. Get written confirmation before closing.
What taxes apply to short-term rentals in Utah?
- Expect state sales tax and transient room taxes, plus possible local lodging taxes. Register with the Utah State Tax Commission and confirm local rates.
How do HOAs enforce nightly rental rules?
- Many HOAs require unit registration, post quiet hours, and monitor for violations. Fines or loss of rental privileges can result from noncompliance.
Can HOA rules change after I buy?
- Yes. HOAs can amend rules under the CC&R amendment process. Review recent minutes to gauge the likelihood of changes.
What are common deal-breakers for Bear Hollow buyers?
- CC&R prohibitions, non-transferable municipal permits, open violations, or pending rule changes that restrict short-term rentals are common hurdles.
