Short term accommodation license law

Update: The Scottish Government has since extended the application deadline for existing operators and hosts from 31 March 2023 to 30 September 2023 .

In a bid to balance the number of short-term lets versus residential properties, the Scottish Government has introduced a mandatory licensing scheme for short-term lets.

From 1 October 2022, local authorities will provide operators with short-term let licences. The deadline for applying for a short-term licence depends on if you’re an existing operator or a new one.

• Existing operator

Operators who provided short-term let accommodations prior to 1 October 2022 have until 1 April 2023 to apply for a licence with their local authority.

• New operator

All new operators must apply for and have a licence in place before they can begin to provide short-term let accommodations. If you do not apply for a licence on time, you could get a fine of up to £2,500 and be banned from applying for a licence for a year.

Operators should be aware that a separate licence is needed for each property. This means that if an existing operator wishes to let out a new short-term let accommodation after 1 October 2022, a licence is required in the same way as a new operator for the accommodation.

Local authorities have up to 12 months to process applications for existing operators and up to 9 months for new operators. Any application that goes beyond these timescales will automatically be given a licence for up to one year unless a count grants an extension.

Your first licence will last for 3 years, but it is advisable that applications for licence renewal are submitted after 2 years to ensure they are approved in time to enable a smooth transition between licences.

The cost of the licence will differ in each local authority depending on a number of factors, e.g. the number of bedrooms in your property. Further information on the fee and application process should be sought from your local authority website.

For more information or to discuss your circumstances, please get in touch with our furnished holiday let specialists by calling one of our offices or emailing leisure@eqaccountants.co.uk.