short-term lets licensing scheme

By law, you now need a license to operate a short-term let property in Scotland.

Who can apply for the license?

You, as the host, are the person responsible for granting agreements with guests to use the property, even if this is delegated to another person or company on a day-to-day basis.

If you do not own the premises, then you must have the permission of the owner(s) to make an application for a licence.

Why not let us take all the hassle away?

Clark Anderson has extensive experience with the short-term rental application process, and it was a proud moment when local councillors recognised us in committee meetings as a responsible and professional management company. We are eager to support you in obtaining your license. While there are a few parts of the paperwork that require your signature, we’ll handle the rest, ensuring a smooth and hassle-free experience.

Here’s how we assist:

  • Application Administration: We manage the entire submission process on your behalf.
  • Certificate Coordination: Arranging all required certifications with trusted tradespeople.
  • Property Inspection: Meeting the assessor for your property inspection.
  • Remedial Work: Following up on any necessary adjustments.
  • Second Inspection: Organizing and attending the follow-up inspection.
  • Representation: Representing you at both planning and decision committee meetings.
 
*A fee of £370 applies for our license application process. 

Why have short term rental licences been introduced?

Short-term lets provide flexible, cost-effective travel options and have greatly contributed to Scotland’s tourism and local economies. To support safety and quality, the Scottish Government introduced this licensing scheme to establish essential safety standards across all short-term rentals. The scheme also empowers local authorities with the flexibility to address the unique needs and concerns of their communities, ultimately fostering a safer and more reliable visitor experience.

The licensing scheme aims to:

  • Ensure all short-term rentals meet safety standards.
  • Equip local authorities with insights into rental activity in their areas.
  • Streamline the process for addressing neighbor complaints and community concerns.

How do I know if I need a licence to operate?

The short-term lets licensing scheme is mandatory for all short-term let accommodation across Scotland, including holiday cottages, B&Bs, guest houses, rooms within a home and unconventional accommodation such as pods and yurts. A license is required, regardless of how long you let the accommodation for. It could be one night or several months. 

As of October 1, 2022, all new hosts or operators of short-term lets (STLs) in Scotland are required to apply for a license under a new regulatory framework introduced by the Scottish Government.

License Types:

  • Home Sharing: Letting part of your home while you still live there.
  • Home Letting: Letting your entire home when you are not there.
  • Secondary Letting: Letting another property (not your home).
  • Guest Accommodation: Covers properties such as B&Bs or hotels offering short-term stays.

New Legislation for Short Term Rentals - FAQs

It is mandatory to place a notice (for at least 21 days) within the close vicinity of your property, informing neighbours of your licence application. We’re working on a template for this and will share and assist with the distribution of these in due course. Please feel free to create your own version however we would urge for a friendly, approachable tone to be used.  

Objections may be made by neighbours or any other person who wants to raise an objection.One of the main purposes of the licensing scheme is to ensure short-term lets are safe and to address issues faced by neighbours. Reasonable grounds for objection to a licensing application may include:

  • the application is not consistent with the licensing authority’s policy on overprovision;
  • concerns that the application is inaccurate or misleading;
  • concerns about the safety of guests, neighbours or others;
  • concerns about noise or nuisance; and
  • concerns that the application runs contrary to other legal or contractual requirements.

As long as your application provides clear and accurate information regarding your holiday let this can be dealt with in a structured manner that will provide you with the best possible case against any objections brought forward. 

We would encourage you to check the official publication for this information as each region has provided separate pricing structures.

Licencing fees for secondary letting licences are calculated based on occupancy levels e.g. a licence for a holiday let in Dundee with guest capacity of 1-2 guests, the cost will be £310, moving to £620 for 3-4 guests, £930 for 5-6 guests and so forth. Each license is granted for a 3 year period.  

Please check your individual council policy for exact figures.

Yes, local authorities will contact and arrange a property visit. There are a number of things they look for and whilst each council and assessor operate slightly differently, the main focus points are typically.

  • Size of bedrooms and how this compares with the maximum occupancy being applied for. 
  • Safety and security of the property, fixtures & fittings. For example, all doors stay shut when closed; bedroom doors cannot be locked from the outside of the room, windows have accessible keys to open and lock, emergency lighting is in place and in appropriate places etc. 
  • From our experience they are also observing the quality and calibre of your property to ensure guests are receiving value for money. Whilst interior design is highly subjective you may, for example, be given feedback if furniture is looking very tired or damaged. If paint is flaking around windows due to condensation. 
  • Assessors will also be reviewing things that may need actioned when completing your certificates. For example fuse board being RCD protected.
Once this inspection is complete, you will be given time to take any actions required and arranging your final visit to ensure everything is in place to move to planning and or decision committees. 

It is not a requirement at this stage but there are recommendations this will help maintain standards and deliver an excellent customer experience.  Visit Scotland provide a Quality Assurance Scheme worth checking out. Please contact us for individual pricing options. 

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