Short-term lets now need a licence
This is a legal requirement for hosts who let out accommodation to guests who stay on a temporary basis.
What are the legal requirements to operate a short-term let in Scotland?
You must obtain a licence before you take bookings or receive guests.
If you’re a prospective host, you should factor in processing times when you plan a new short-term let. While licensing authorities will decide as quickly as they can, it can take up to 9 months to process your application.
Operating without a short-term let licence is a criminal offence. You could get a fine of up to £2,500 and be banned from applying for a licence for a year. You cannot offer lets during this period.
You need a licence, even if you occasionally let out a spare room or sublet while you’re on holiday.
When will the transitional period end for hosts that were operating prior to 1 October 2022?
If you were already using your accommodation to provide short-term lets before 1 October 2022 and applied for a licence before 1 October 2023, you’re classed as an ‘existing host’. This means you can continue letting your accommodation while the licensing authority is processing your application.
Licensing authorities have up to 12 months to determine applications from existing hosts from the date the application is made. This is extended up to 15 months if applications are suspended for planning reasons.
You should provide the requested information to make sure the licensing authority has everything they need to decide your application. This will avoid it being refused because you do not demonstrate compliance with mandatory and additional conditions.
Licensing authorities will tell you if they cannot decide applications within these timescales and if they have applied to the courts for an extension of the processing time.
The transitional period will end for most existing hosts on 1 January 2025, unless the court has granted an extension for their application. Existing hosts can continue to operate during an extension until their application is determined.
If you were a host before 1 October 2023 and have not yet applied for a licence, you must stop accepting bookings and welcoming guests until you have a licence.
How to apply for a licence
You will need to apply for a licence from the licensing authority (local council) in which your accommodation is located.
If you offer more than one short-term let, each one may need a separate licence even if they are in the same council area.
What you need to know before applying
- Your accommodation will need to meet mandatory conditions. Your local council may also set additional conditions.
- You need planning permission if your accommodation is in a short-term let control area. If it’s not in a control area, you may still need planning permission to get a short-term let licence. Check with your local council planning department to find out.
- Licence fees will vary across different local councils and may depend on the size and capacity of your accommodation. Local councils run their short-term let licensing scheme based on cost-recovery.
Find out more about the licensing requirements and short-term let control areas