Utah’s housing laws are on the verge of significant changes, and if you’re a homeowner, renter, landlord, or real estate professional, these new bills could directly impact you. These proposed laws aim to reshape how properties are managed across the state.
This is Part 2 of our 2025 Utah Proposed Bills for Housing Legislation coverage. If you haven’t read Part 1, check it out to stay fully informed!
The decisions made in this legislative session will shape Utah’s real estate market in the coming years. Knowing what’s happening now can help you prepare for what’s next.
Read on for a detailed breakdown of key bills, their current status, and how they might affect Utah’s housing market.
C. New Proposals to Combat Squatting
Squatting has become a growing concern in Utah, prompting lawmakers to introduce new measures that strengthen property owners' rights. These proposals aim to streamline eviction processes and prevent unauthorized occupants from taking advantage of legal loopholes.
HB 126 – Unauthorized Use of Residential Real Property Modifications
This bill implements stricter legal measures to address squatting, allowing property owners to take quicker action against unauthorized occupants. It also establishes more precise guidelines for handling unauthorized property use, reducing loopholes that squatters may exploit.
If this bill passes, landlords may no longer have to fight lengthy legal battles to remove squatters. At the same time, homeowners can have stronger legal protection, reducing the financial and legal burdens caused by unauthorized occupants.
Current Status: Still in the House/Senate Rules Committees. The bill is awaiting further discussion before moving forward.
SB 55 – Unauthorized Use of Residential Property Amendments
This bill introduces more potent legal relief for property owners dealing with squatters, ensuring faster eviction procedures. It would also make it easier for landlords and investors to reclaim their properties, preventing squatters from delaying turnover.
If this bill passes, property owners may no longer face extended legal delays when dealing with squatters. Those attempting to exploit legal loopholes could also face stricter consequences. This would increase rental market stability and boost the confidence of landlords and investors in property management.
Current Status: Passed the Senate and is now in the House for further review. It has a higher chance of becoming law than HB 126 since it has already gained Senate approval.
D. Housing Affordability and Development Efforts
As Utah’s housing crisis continues, lawmakers are introducing new bills to improve housing affordability and increase the housing supply. These proposals focus on zoning regulations and policies that could shape the future of residential development in the state.
HB 256 – Municipal Zoning Amendments
This bill seeks to remove restrictions placed on municipalities, allowing them to enforce zoning regulations more aggressively. Cities would have more authority to manage land use, approve or deny developments, and ensure compliance with local housing policies.
If this bill passes, it would prevent local governments from outright banning short-term rentals. Homeowners could legally list their properties on platforms like Airbnb and Vrbo, opening up new income streams, particularly for those looking to offset mortgage payments or maximize property investments.
Current Status: Moved to the House Floor for Debate. Lawmakers will discuss its potential impact on housing supply, affordability, and local government authority.
SB 181 – Affordable Housing Amendments
The bill introduces financial and regulatory incentives for developers to build more affordable housing units. These could include tax credits, streamlined permit processes, or reduced impact fees. It also proposes allocating additional state resources to programs that support low- and moderate-income housing, helping to create more accessible living options for Utah residents.
If passed, SB 181 could lead to the construction of new affordable housing units, giving renters and first-time buyers more options within their budgets. An increase in affordable housing developments could influence local property values, particularly in areas where new housing projects are concentrated, reducing homelessness and housing instability for low-income families and individuals.
Current Status: Moved to the House Floor for Debate. Lawmakers are reviewing its potential impact, discussing how much funding should be allocated and what regulatory changes are necessary to encourage more affordable housing development.
E. Other Notable Bills to Watch
Utah’s 2025 legislative session includes several bills that could significantly change the state’s real estate regulations and eviction processes. While some proposals have stalled, others are still under consideration and could shape how housing laws are enforced in the future.
SB 125 – Eviction Amendments
The bill aimed to eliminate the legal requirement for judges to impose treble damages or triple the financial losses in eviction cases. This change would have given courts more discretion in assessing penalties against tenants.
By removing mandatory treble damages, the bill sought to provide landlords with more options when pursuing legal action against tenants while reducing the financial burden on renters facing eviction. Since the bill did not pass, landlords must still follow current laws requiring treble damages in eviction cases, which could result in higher financial penalties for tenants.
Current Status: Declared dead. It will not move forward from this session and will not become law.
SB 201 – Real Estate Amendments
While the bill does not specify exact amendments, it aims to update various aspects of Utah’s real estate laws, possibly including property transactions, licensing requirements, or regulatory oversight.
Depending on the amendments included, SB 201 could change how real estate transactions are conducted, impacting both buyers and sellers. If the bill contains regulatory adjustments, landlords and property managers may need to comply with updated legal standards. Since the bill’s exact changes are still unclear, its effects on homeowners and renters will depend on the final version approved by lawmakers.
Current Status: Moved to the House Floor for Debate. Lawmakers are reviewing its potential impact on Utah’s housing market, and further amendments may be made before a final vote.
Prepare for Utah’s Rental Law Changes with Confidence and Maximize Returns with Smarter Property Management
This marks the final part of our 2025 Utah Proposed Bills for Housing Legislation coverage. If you’ve read both Part 1 and Part 2, congratulations! You’re now fully prepared to navigate Utah’s evolving rental housing regulations confidently.
However, if you haven’t checked out Part 1 yet, don’t miss it! Understanding all proposed changes is crucial for landlords, investors, and property owners looking to stay compliant and protect their rental business.
Utah’s 2025 legislative session is reshaping property management, housing affordability, and squatter laws. Wolfnest’s team of experts is here to help landlords, investors, and property owners stay ahead of legal changes that could significantly impact their rental business through:
- Squatter Prevention and Legal Assistance - Protect your property with proactive measures and expert legal guidance.
- Eviction Management and Compliance - Ensure fast, legal eviction processes under Utah’s updated laws.
- Affordable Housing Compliance and Development - Navigate regulations and investment opportunities in affordable housing.
- Lease Agreement Review and Enforcement - Keep your lease agreements aligned with evolving state regulations.
- Real Estate Law Compliance and Risk Management - Stay ahead of legislative changes that impact landlords and investors.
Don’t let legislative changes catch you off guard—partner with us to safeguard your rental properties and stay compliant with Utah’s latest housing laws.
Discover what differentiates Wolfnest from other property management companies and how we can help you confidently navigate 2025’s real estate regulations! Book a FREE Consultation with us today!
Related Articles
Landlording in a Renter's Market: Strategies for Success in 2025
Salt Lake City Rental Market Overview: Trends and Challenges for 2025
Financial Tips for Renters in 2025: Saving Money and Building Wealth
