Legislative Update - 2026 Session Ends

2026 Legislative Update - Session Ends
Saturday March 7th, 2026

From Executive Director Paul Smith

Legislative Update - 2026 Session Ends
 
The Utah Legislature concluded yesterday evening at approximately midnight. There were many issues that were considered, some of which passed that affect rental property owners and operators.
 
One major bill, SB 97, that would have increased property taxes on rental properties, failed in a very close vote the last week of the session. Another bill regarding Property Management Licensing, HB 377, passed . It gives more time (until the end of 2026) and guidance to the Division of Real Estate in creating a new “Property Management Only” license, which would be separate from the Real Estate Sales license. The Division of Real Estate will create separate regulations and rules for licensees who are doing “PM Only” and no sales, which is a large portion of the approximately 200,000 units that are being managed by third parties. 
 
What this means for those of you that do third party management is that the Division of Real Estate will need to pass rules over the summer, creating the new license and new SEPARATE regulations for PM Only. We anticipate the process to do that will proceed quickly and we will keep everyone informed.
 
At the last minute HB 377 was amended by the Senate and had to be sent back to the House for a final vote to “concur”, or accept, the Senate amendment. The Senate amendment requires the Department of Commerce to study the issue of what powers should be given to the Division of Real Estate and what should be given to the Consumer Protection Division when there is a complaint about property management practices. The hope would be that this would result in guidance and clear rules on what property managers would need to do to be transparent in advertising. We’d like to see a clear line created that property managers could be trained not to cross. Currently there is no clear line and Consumer Protection Division has wide latitude to punish things property managers do not know are violations. 
 
We as an industry support transparency and full disclosure of prices, fees and lease terms and have supported legislation creating a Rental Expense Disclosure. We look forward to working with the Department of Commerce to create rules that protect the public and are clear for rental operators.

Additionally, even though it was a tight year for appropriations, we were able to get $450,000 for our Section 8 Guarantee Fund and $450,000 for the Community Action Eviction Prevention Fund which is also very beneficial for us and often helps tenants pay off their balances to avoid eviction.
 
A big thanks goes out to Justin Allen, the RHA’s Government Affairs Director, who spent basically every day of the 45-day session on Capitol Hill, and to our lobbying team from Kohler, Kyler Ostermiller and Sorensen led by Chris Kyler. The whole team worked very hard to protect our industry and find win/win solutions.
 
Thanks to all who served on the Government Affairs Committee of the RHA and to all those who donate to our Advocacy fund – the RHA PAC! 

We need to remain diligent and engaged. Remember, those who don’t have a seat at the table find themselves on the menu! Lets make sure we stay engaged in supporting balanced landlord tenant law, clear and appropriate government regulation and strong property rights.