diff --git a/homeassistant/components/device_tracker/owntracks.py b/homeassistant/components/device_tracker/owntracks.py
index 8254285a98b..40cb19e05e7 100644
--- a/homeassistant/components/device_tracker/owntracks.py
+++ b/homeassistant/components/device_tracker/owntracks.py
@@ -11,7 +11,7 @@ from collections import defaultdict
 
 import homeassistant.components.mqtt as mqtt
 from homeassistant.const import STATE_HOME
-from homeassistant.util import convert
+from homeassistant.util import convert, slugify
 
 DEPENDENCIES = ['mqtt']
 
@@ -91,7 +91,7 @@ def setup_scanner(hass, config, see):
             return
         # OwnTracks uses - at the start of a beacon zone
         # to switch on 'hold mode' - ignore this
-        location = data['desc'].lstrip("-")
+        location = slugify(data['desc'].lstrip("-"))
         if location.lower() == 'home':
             location = STATE_HOME
 
diff --git a/tests/components/device_tracker/test_owntracks.py b/tests/components/device_tracker/test_owntracks.py
index 7fa290e4005..e5fcd454835 100644
--- a/tests/components/device_tracker/test_owntracks.py
+++ b/tests/components/device_tracker/test_owntracks.py
@@ -230,6 +230,20 @@ class TestDeviceTrackerOwnTracks(unittest.TestCase):
         # Left clean zone state
         self.assertFalse(owntracks.REGIONS_ENTERED[USER])
 
+    def test_event_with_spaces(self):
+        """Test the entry event."""
+        message = REGION_ENTER_MESSAGE.copy()
+        message['desc'] = "inner 2"
+        self.send_message(EVENT_TOPIC, message)
+        self.assert_location_state('inner_2')
+
+        message = REGION_LEAVE_MESSAGE.copy()
+        message['desc'] = "inner 2"
+        self.send_message(EVENT_TOPIC, message)
+
+        # Left clean zone state
+        self.assertFalse(owntracks.REGIONS_ENTERED[USER])
+
     def test_event_entry_exit_inaccurate(self):
         """Test the event for inaccurate exit."""
         self.send_message(EVENT_TOPIC, REGION_ENTER_MESSAGE)