It may seem like a great investment to turn a residential home into a short-term vacation rental in St. George, or even rent a room short-term within your own home for extra income. We get a lot of visitors here, people wanting to enjoy the warm climate and all the outdoor activities Southern Utah has to offer.
However, the city has prohibited short-term vacation rental properties in residential zones.
Resorts, such as Green Valley Spa, Red Mountain Resort, and Entrada have residences available to rent, as well as planned development zones with amenities such as Las Palmas and certain communities in Bloomington. Because of this, buyers are waiting in the wings to swoop down on a property that is zoned for short-term rentals.
There are opportunities for short-term rental income in regular residential neighborhoods as "resort overlay", but only if owners can meet certain requirements for amenities.
It's a hot local debate: on one hand, you have property owners who feel they should have the right to use their property however they please. On the other, homeowners who want their residential neighborhoods to stay peaceful and quiet.
For now, the City of St. George has maintained it's ban on residential short-term rentals.
Check this article from The Spectrum for additional information: http://www.thespectrum.com/story/news/2016/05/18/resorts-condos-and-more-debate-over-short-term-rentals/84562424/