Why is the City Letting Your Neighbor Illegally Rent Their Basement?

Hey Provo! 👋Why is the City Letting Your Neighbor Illegally Rent Their Basement?

Probably because the city doesn’t know about it.

Welcome to WHAT’S THE DEAL? a new series where I answer your questions about how Provo works (while the City Council and Planning Commission are on a short break).

This video covers the highlights, but you need the details.

Here they are:

Last time we dug into detached Accessory Dwelling Unit (ADU) laws in Provo (ie. backyard cottages and garage apartments). See that post here:

But INTERNAL ADUs (ie. basement apartments) are far more common and a lot more likely to be happening illegally in Provo.

WHAT’S THE DEAL with so many illegal ADUs in Provo?

The only way for Provo City Government to know if someone is renting out an apartment in their house is if the homeowner has a Rental Dwelling License from the city or neighbors report them to Code Enforcement. This is a sore point for Provo officials because ADUs have a lot of benefits. They create more affordable rental options, help new homeowners afford their mortgage, and make it possible for older residents to age-in-place.

But having so many illegal ADUs makes it impossible for the City to enforce rules designed to prevent negative effects on neighborhoods (like traffic and parking). Those impacts make ADUs unpopular with neighborhoods, which makes the City Council want to limit ADUs even further, which creates an incentive for homeowners to ignore the long list of ADU rules and hope they don’t get caught. It’s a self-perpetuating cycle.

So, the City has begun doing “enforcement blitzes” where they go into a neighborhood and knock on every door to find out who’s living there and whether there’s a rental unit. The Code Enforcement office is also looking through property records and sending warning letters to homeowners they suspect of having an illegal rental. Here are the results of the first blitz they did:

BUT WHAT’S LEGAL AND WHAT’S NOT?

There are three ways an internal ADU can be illegal in Provo:

1️⃣ It’s in an area not zoned for ADUs. Everything in BLUE on this map allows internal ADUs like basement apartments.

ONE EXCEPTION: Homeowners over age 60 who do not live in BLUE areas on the map can apply for an “Elderly Persons Extra Living Space” permit and legally rent an internal ADU. The City Council created this carve-out specifically to help aging residents stay in their homes.

Everyone else can request an exception from the City Council to get their home rezoned for an internal ADU, but the City Council rarely grants those exceptions.

2️⃣ It’s allowed, but it’s not licensed. Every ADU - internal or external - is required to have a Rental Dwelling License. It costs $20 and must be renewed every year. That’s true even if you’re renting to a family member. Even if you’re not charging rent.

See which rentals are licensed in Provo on this interactive map.

3️⃣It’s allowed, but it’s not following the rules.

Here are the internal ADU rules that are most often violated:

• Homeowner lives on-site. Temporary absence (ie. Mission, sabbatical, military service) is okay, but must be cleared with the city.

• Main residence is occupied by one family (can include extended family relatives of the head of household and up to 2 unrelated adults).

• Rental apartment is occupied by no more than 3 adults (related or unrelated) and their minor kids.

• Minimum 4 parking spots on the property. If all the residents in the home and ADU have more than 4 cars, you need enough off-street parking for all of those vehicles.

• ADU outside entrance is on the back or side of the house.

Read Provo’s ADU Code here.

WHAT HAPPENS IF YOU’RE CAUGHT VIOLATING THE ADU LAWS?

It can get expensive quickly! Usually, there’s a one-week investigation period by the Code Enforcement office and if you’re found in violation, you’ll have two weeks to come into compliance. After that, you’ll face a $100/day fine per violation. If you’re still in violation after 30 days, the fine jumps to $250/day and then to $500/day after another 30 days.

(This info was shared by Provo City Code Compliance Officer Abinadi Borja at the Northwest District Neighborhood Meeting on June 3, 2026.) Read the minutes here.

🚨Tell the Provo City Council what you think! (They’re pretty much always wrestling with ADU issues.) Email council@provo.gov.