Scotland Short Term Let Licensing Guide
This comprehensive guide will walk you through everything you need to know about the licensing process, ensuring you meet all the requirements and operate within the law.
In this guide, we will explore the licensing requirements, including the new mandatory licensing scheme which came into effect on April 1, 2021. We will delve into the application process, fees, and the obligations you need to meet as a short-term let host.
Whether you are a new host looking to get started or an experienced host wanting to stay updated with the latest regulations, this guide will provide you with the essential information you need to operate legally and successfully as a short-term let host in Scotland.
Stay tuned for comprehensive insights, helpful tips, and expert advice to navigate the world of short-term letting in Scotland. Let’s get started!
Scottish legislation on short term lets
The Scottish government has been proactive in addressing the growing short-term let market within the country.
In recent years, there has been increasing concern over the impact of short-term lets on local communities, housing availability, and the overall sustainability of the sector.
To address these concerns, the Scottish government has introduced new legislation to regulate the short-term let industry.
What is the legislation
The primary piece of legislation governing short-term lets in Scotland is the Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2022, which came into effect on April 1, 2021.
This order establishes a mandatory licensing scheme for all short-term let properties in Scotland, with the aim of ensuring the safety and quality of accommodations, as well as mitigating the negative impacts of short-term lets on local communities.
Who does the scheme apply to ?
The new licensing scheme applies to a wide range of short-term let properties, including entire homes, shared accommodation, and secondary letting arrangements.
Hosts are required to obtain a license for each property they offer as a short-term let, and the license must be renewed every three years. The legislation also introduces additional requirements, such as safety checks, planning permissions, and the need to meet specific criteria to obtain a license.
What is the purpose of the new licensing scheme in Scotland?
The primary purpose of the new short-term let licensing scheme in Scotland is to address the growing concerns surrounding the impact of short-term lets on local communities and housing availability. The Scottish government has recognised the need to strike a balance between supporting the growth of the short-term let industry and ensuring the sustainability and liability of local areas.
Improve safety & quality of Airbnb properties
One of the key objectives of the licensing scheme is to improve the safety and quality of short-term let accommodations. By requiring hosts to obtain a license and meet specific safety and quality standards, the government aims to ensure that visitors have access to safe and well-maintained properties, reducing the risk of accidents or incidents.
This, in turn, helps to build trust and confidence in the short-term let sector, benefiting both hosts and guests.
Limit negative impacts
Additionally, the licensing scheme is designed to mitigate the negative impacts of short-term lets on local housing availability and affordability.
In some areas of Scotland, the proliferation of short-term lets has led to a reduction in the number of properties available for long-term residential use, driving up rents and making it more difficult for local residents to find affordable housing.
The licensing requirements, including the need for planning permission in certain cases, are intended to help strike a balance between the needs of the short-term let industry and the housing requirements of local communities.
Application process for short term let licenses in Scotland
The application process for obtaining a short-term let license in Scotland is straightforward, but it does require hosts to provide a range of information and documentation.
The process is managed by local authorities, who are responsible for receiving, processing, and issuing licenses within their respective jurisdictions.
How to apply
To apply for a short-term let license, hosts must first register with their local authority and complete an application form.
This form typically requires information about the property, the host, and the intended use of the property as a short-term let. Hosts will also need to provide supporting documentation, such as:
Proof of ownership or tenancy.
Evidence of planning permission (if required.)
Details of any safety checks or improvements made to the property.
Once the application is submitted, the local authority will review the information and ensure that the property and the host meet the required criteria for a short-term let license. This may involve:
Inspections.
Background checks.
The consideration of any objections or concerns raised by the local community.
If the application is approved, the host will be issued a license.
Criteria for obtaining a short term let license
One of the key requirements is that the property must meet specific safety standards, including:
The installation of smoke alarms.
Carbon monoxide detectors.
Fire extinguishers.
Hosts must also provide evidence that the property has been inspected and approved by a qualified professional, such as a building surveyor or a fire safety expert.
Other things to note
In addition to safety requirements, hosts must also demonstrate that they have obtained the necessary planning permissions for the use of the property as a short-term let.
Depending on the location and the nature of the property, this may involve obtaining a change of use permit or complying with specific zoning regulations.
Hosts may also be required to provide information about their intended occupancy levels, parking arrangements, and any measures they have taken to address potential noise or nuisance issues to the local area.
What are the temporary exemptions and how are they granted ?
One of the key temporary exemptions is for hosts who were operating a short-term let before April 1, 2022. These hosts are able to continue operating their properties without a license until April 1, 2023, provided that they have submitted a valid license application by the end of September 2022.
What is the temporary exemption for ?
This exemption is intended to give hosts time to navigate the new licensing process and ensure that their properties comply with the required standards.
Other temporary exemptions
Another temporary exemption applies to properties that are only rented out for a limited number of days per year. Hosts who rent out their property for fewer than 28 days per year may be eligible for a temporary exemption, provided that they can demonstrate that the property is their primary residence and that the short-term let is an occasional or incidental activity.
What are the temporary licences and how are they issued?
In addition to the temporary exemptions, the Scottish government has also introduced a system of temporary licenses for short-term let hosts.
These licenses are designed to provide a more flexible and responsive approach to the licensing process, particularly in cases where hosts need to accommodate last-minute bookings or unexpected circumstances.
How are they issued ?
Temporary licenses are typically issued for a shorter duration than the standard three-year licenses, and they may be subject to additional conditions or restrictions.
For example, a temporary license may be granted for a specific event or festival, or it may be issued to a host who is in the process of completing the full license application but needs to accommodate guests in the meantime.
How to apply
To apply for a temporary license, hosts must submit a separate application to their local authority, providing:
Information about the property.
The intended use.
Any relevant supporting documentation.
The local authority will review the application and, if approved, will issue a temporary license that is valid for a specified period of time.
What are the timelines for the new licensing scheme in Scotland ?
The new short-term let licensing scheme in Scotland was introduced in April 2021, with a phased implementation timeline to allow hosts and local authorities to adapt to the new requirements.
The key milestones in the timeline for the new licensing scheme are as follows
April 1, 2021: The Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2022 came into effect, establishing the mandatory licensing scheme for short-term lets in Scotland.
September 1, 2022: The deadline for existing short-term let hosts to submit a license application to their local authority. Hosts who submitted an application by this date are able to continue operating their properties under a temporary exemption until their application is processed.
April 1, 2023: The deadline for all short-term let properties in Scotland to have a valid license in place. After this date, it will be illegal to operate a short-term let without a license.
April 1, 2024: The first round of license renewals will begin, with hosts required to reapply for their licenses every three years.
Throughout this timeline, local authorities have been responsible for implementing and enforcing the new licensing scheme within their respective jurisdictions.
This has involved setting up application processes, conducting property inspections, and working with hosts to ensure compliance with the new regulations.
Benefits of obtaining a short term let license
Credibility
One of the primary benefits of obtaining a license is the increased trust and credibility that it can bring to a host's property. Guests are more likely to feel confident in booking a property that has been vetted and approved by the local authority, knowing that it meets safety and quality standards. This can lead to higher occupancy rates, positive reviews, and a stronger reputation for the host.
Higher standards
Additionally, the licensing process can help hosts to identify and address any issues or deficiencies in their property, ensuring that it is well-maintained and compliant with relevant regulations. This can not only improve the guest experience but also reduce the risk of accidents or incidents, protecting both the host and the guests.
Benefits communities
For local communities, the short-term let licensing scheme can help to mitigate the negative impacts of short-term lets, such as noise, waste management issues, and the reduction of long-term housing stock. By requiring hosts to obtain licenses and meet specific criteria, the scheme can help to ensure that short-term lets are operated in a responsible and sustainable manner, balancing the needs of the industry with the needs of the local area.
Increased value
One of the main benefits for hosts is the increased property value in having a license, because Airbnb properties yield higher than standard buy to let and not everyone can get a license, this will increase the value if you can obtain a license.
Less competition
Because not everyone will be able to get a license, this means much less competition from other Airbnb hosts both now and in the future creating a MOAT around your business.
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