Salt Lake City just passed new short-term rental licensing rules that take effect July 1, 2026. The headline restriction: properties can only be rented short-term for a maximum of 200 nights per year.
If you operate STRs in Salt Lake City, or in Denver, Portland, Austin, San Francisco, Nashville, or any city with similar regulations, this creates a real problem. You have a fully furnished property sitting empty 165 days a year with zero revenue.
But what looks like a limitation actually presents an opportunity for smart operators willing to diversify.
The new reality for short-term rental operators
Salt Lake City's new licensing framework caps short-term rentals at 200 nights per year, requires a $198 base license fee plus $342 per unit, and imposes a two-night minimum stay. The city hopes these rules reduce party rentals and prevent residential units from being converted to full-time hotels.
This isn't unique to Salt Lake City. Cities across the country are implementing similar restrictions as tourist demand strains housing markets and neighborhoods push for enforcement. Denver has occupancy limits. Portland implemented a lottery system. Austin caps STRs in certain zones. San Francisco requires primary residency for many STR hosts. Nashville is tightening its regulations year by year.
What this means for operators is simple: your furnished property now has a limited season for peak-rate rentals, and the other 165 or so days don't have to sit empty.
The math: why diversification makes sense
Let's look at the actual economics for an STR operator in one of these regulated markets.
Peak season revenue (200 nights):
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Average nightly rate: $150
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Occupancy during peak season: 85% (realistic for regulated markets)
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Annual peak revenue: $150 x 170 nights = $25,500
The gap:
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Days available: 365 minus 200 allowed nights = 165 days
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Days without revenue: 165
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Lost income: $150 x 165 = $24,750 (if you could rent them short-term)
But you can't rent them short-term. You're capped at 200 nights.
Off-season with midterm rentals:
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Available period: 165 days (off-season)
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Monthly rental rate: $2,800 (all-inclusive, typical for furnished properties)
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Off-season duration: 5.5 months
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Off-season revenue: $2,800 x 5.5 = $15,400
Combined annual revenue:
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Peak season (STR): $25,500
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Off-season (midterm rentals): $15,400
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Total: $40,900
Without diversification:
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Peak season only: $25,500
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Off-season sitting empty: $0
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Total: $25,500
The difference: $15,400 in additional annual revenue by filling the off-season gap.
How the strategy works: peak and off-season model
The diversification model is straightforward and can work for your local area, no matter when your peak season is.
Peak season:
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List your property on Airbnb, Vrbo, and Booking.com
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Target vacation travelers and tourists
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Charge premium nightly rates ($120 to $200 or more)
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Stay within your city's 200-night annual cap
Off-season:
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Delist from short-term platforms or block out the off-season in your calendar
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List on monthly rental platforms designed for temporary housing
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Target traveling professionals, corporate relocators, trade workers, students, and others needing furnished housing for 1 to 6 months
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Charge monthly all-inclusive rates ($2,000 to $3,500 depending on location and property)
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Generate steady revenue during traditionally slow months
The advantages of diversifying your short-term rental
For your revenue: peak season captures tourists willing to pay premium nightly rates, and off-season captures professionals who need affordable temporary housing with flexible terms.
For your property: midterm tenants staying one to six months treat the property like home, while short-term tourists treat it like a hotel. Less wear and tear during the off-season means better property condition year-round.
For compliance: you stay within licensing caps by operating short-term during the permitted season and transitioning to longer-term during the off-season.
For simplicity: you're not juggling simultaneous bookings or managing two different rental systems. It's sequential and clean.
Cities where this strategy works best for your short-term rental
Short-term rental regulations are spreading. Cities implementing similar restrictions include:
Salt Lake City: 200 nights per year cap, $198 base license fee, strict enforcement starting July 1, 2026.
Denver: occupancy limits based on neighborhood, licensing required, enforcement expanding.
Portland: lottery system for new licenses, caps on properties in certain zones, neighborhood restrictions.
Austin: zoning-based restrictions, license requirements, regular inspections.
San Francisco: primary residency required for many STRs, strict occupancy limits, high compliance costs.
Nashville: expanding regulations on STRs in residential areas, entertainment district restrictions, increasing licensing fees.
Markets with strong seasonal tourism patterns, like ski towns, beach destinations, and conference cities, see the biggest off-season revenue opportunities. Markets with year-round tourism see less dramatic swings but still benefit from diversification, especially if they have one to three month periods that tend to be slower.
Setting up your diversification: key considerations
Property condition: your property needs to be in good shape year-round. Midterm renters expect furnished units with working appliances, reliable internet, and functional amenities. This is standard for peak-season STRs too, so you are likely already maintaining these standards.
Listing preparation: when transitioning from STR to midterm rental, update your listing details. Highlight lease flexibility, included utilities, furnishings, and what makes your property suitable for professionals needing temporary housing. The marketing angle is different from tourism marketing.
Pricing strategy: peak season rates are nightly and premium ($120 to $200 or more). Off-season rates are monthly and all-inclusive. Don't try to apply nightly rates to monthly rentals or vice versa, because they are different markets with different pricing logic.
Utility management: confirm utilities are included in your monthly rental pricing. This simplifies billing for midterm renters and makes your property more competitive against hotels.
Quick transitions: plan for one to two weeks between peak season checkout and off-season move-in. Use this time for deep cleaning, maintenance inspections, and updating listings.
Local regulations: confirm that your city allows both short-term and midterm rentals in your property's zone. Some cities restrict where each type can operate, so know your specific rules.
The economics for different property types
Diversification works differently depending on your property.
Single-family homes: typically command higher nightly STR rates ($150 to $250 or more). Off-season monthly rates ($2,500 to $3,500) are very competitive. Strong diversification opportunity.
Condos and smaller units: may have lower nightly rates ($80 to $150). Monthly rates ($1,800 to $2,500) are still solid. Good diversification opportunity.
Multi-unit properties: more complex to manage. Consider operating individual units on different cycles if possible, or dedicating certain units to peak-season STR and others to off-season midterm rentals.
Furnished vs. unfurnished: furnishings work for both peak-season STR and off-season midterm rentals. Unfurnished properties don't work well for short-term but can work for longer stays with midterm renters who are relocating to the area, often on 6 to 12 month leases.
Why this works now
Short-term rental regulations are becoming standard in major markets. Cities are implementing them to enforce rules, generate revenue from licensing fees and lodging taxes, and address housing pressure. For operators, the practical reality is that regulations are your operating environment now. Rather than spending energy resisting them, it makes sense to work within them strategically.
That's where diversification comes in. You have a furnished property that regulations now limit to seasonal short-term rentals. Instead of leaving it vacant during the off-season, you can generate revenue from it year-round by renting it for longer terms when short-term isn't allowed. It's not a workaround. It's smart use of your asset. You are converting months that would otherwise generate zero income into steady revenue, and you are also showing local regulators that you are a responsible, compliant operator who adapts to the rules rather than fighting them. That matters when licensing decisions get made.
Turning your off-season into year-round income
Your peak season brings strong short-term rental income when tourists are visiting. Off-season months, though, represent untapped potential for most operators.
Short-term rental caps are becoming standard in major markets. Salt Lake City, Denver, San Francisco, and many others now limit how many nights per year you can rent short-term, and it's a reality most operators are adapting to. What this means is that your property has a natural rhythm now: premium income during peak season, then quieter months when short-term restrictions apply. But those quieter months don't have to be income-free.
Monthly rentals during the off-season fill that gap. You're looking at steady income during periods that would otherwise sit unused, and for most furnished properties, this adds $15,000 to $20,000 a year.
Ready to diversify your rental?
List on MatchBook to market your rental to midterm renters looking for 1 to 12 month stays during your off-season months. Our platform provides calendar syncing, renter screening, payment processing, and more at no cost to hosts, which makes off-season renting straightforward.
Frequently asked questions
Do I have to follow my city's short-term rental cap?
Yes. Short-term rental licenses are tied to specific rules and night caps. Operating beyond your city's limits risks fines, up to $1,000 per seven days in Salt Lake City, and license suspension.
Can I rent the same property short-term and midterm at the same time?
You can list your property on sites like Airbnb and Vrbo for short-term availability and on MatchBook for midterm availability, syncing your calendars across platforms. If you have a peak short-term season you want to prioritize, block those months out in MatchBook, then rent to midterm renters looking for 1 to 8 month stays outside of peak tourism season.
What if my city doesn't have short-term rental regulations yet?
Regulations are spreading and will likely reach your market eventually. Starting diversification now positions you ahead of competitors when rules do pass.
How much should I charge for off-season monthly rentals?
Research monthly furnished rentals in your area. Most run $2,000 to $3,500 depending on location, property size, and included amenities. Price competitively, but make sure it covers your costs and generates profit.
What if I'm already at my city's short-term rental cap?
You're not alone. Many cities have more operators than licenses. Diversifying to off-season midterm rentals adds revenue without competing for additional STR licenses.
How do I transition my listing from STR to monthly rental?
Update your listing with new photos that emphasize living space, kitchen, and work areas. Highlight lease flexibility, all-inclusive pricing, and suitability for professionals. Market to different audiences during different seasons.
Is off-season midterm rental income as reliable as peak-season STR?
Midterm tenants typically stay for the full term, which makes revenue more predictable than nightly bookings. Midterm rentals can have longer vacancy periods between renters, though, so plan accordingly.