New Legislation for Short Term lets

From October 1st 2022 you will require a licence to operate as a holiday let.

twin room at caddie's cottage

What is changing for short term rentals in Scotland?

The Licensing Order and Control Area Amendment Regulations were approved by the Scottish Parliament on 19 January 2022 and came into force on 1 March 2022. Local authorities had until 1 October 2022 to establish a licensing scheme, existing hosts will have until 1 October 2023 to apply for a license., and new landlords must apply and have their application approved before taking their rental property live. 

 

Local Policies

All local authorities now have policies in place. Make sure you read through the documentation that relates to your area, before you start your application. Here are some quick links to each:

Many have very helpful checklists to assist you with your application.

f you have any general questions please contact us – we’d be more than happy to help! We do urge however, to discuss your application with your solicitor if you are unsure of any particular details.

Up to date information will always be found on ASSC homepage; a great association to follow. 

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.  

Please check your individual council policy for exact figures.

There may be a small number of proactive visits, it is not clear how likely or how often these will you will receive advanced notification prior to any visit.

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. 

Why have short term rental licences been introduced?

Short term lets can offer people a flexible and cheaper travel option, and have contributed positively to Scotland’s tourism industry and local economies across the country. The Scottish Government has put in place this licensing scheme to ensure basic safety standards are in place across all short-term lets operating in Scotland, while also providing discretionary powers to licensing authorities to address the needs and concerns of local communities. Improved visitor experience and confidence will benefit tourism and the economy.

The aims of the licensing scheme are:

  • to ensure all short-term lets are safe;
  • to facilitate licensing authorities in knowing and understanding what is happening in their area
  • to assist with handling complaints and address issues faced by neighbours effectively

Who can apply?

You, as the host or operator, can apply for a license to use your (or someone else’s) premises to provide short-term lets. You can also ask another person to make the application on your behalf.

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.

Mandatory Conditions

The licensing scheme requires all licensed short-term lets to comply with mandatory conditions which apply across Scotland. Many hosts and operators will already be complying with these mandatory conditions because some of them are already required through other legislation and others are best practice now. Your application will be refused if you cannot show how you comply with the mandatory conditions so it is worth ensuring you are ready before making your application.

Responsible hosts and operators will most likely have a lot of these conditions already in place therefore it will just be a case of collating this evidence.

The mandatory conditions relate to:

  • day to day management of the short-term let only being carried out by the holder of the licence
  • only operating under the type of licence you have been granted
  • fire safety
  • gas safety
  • electrical safety
  • water safety
  • safety and repair standards
  • maximum occupancy
  • displaying information
  • planning permission
  • listings
  • insurance
  • payment of fees
  • providing true and accurate information (i.e. not providing false and misleading information)

Please click on this link to the full 56 page document for reference and if you have any questions and you think we can help please contact us anytime.

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