Monday, September 26, 2022

Doors open to new short-term rental licensing system – Kevin Clancy

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A new licensing system comes into force in Scotland to regulate short term rentals. It requires hosts of self-catering accommodation to be licensed to take bookings and welcome guests.

Do I need a license?

The scheme applies across Scotland, although some residential accommodation is specifically excluded (such as hotels, hostels and caravan sites), as are certain types of rental agreements. For purposes of the Program, a short-term rental is defined as the use of residential accommodation that a Host makes available to a Guest in the course of their business when all of the following criteria are met: The Guest does not use the Accommodation as their sole or primary residence; The short-term rental is concluded for a commercial fee; Guest is not an immediate family member of Host, shares Accommodation with Host for educational purposes, or is not an owner/part-owner; The Accommodation is not primarily intended to provide the Host (or another member of the Host’s household) with work or service provision by the Guest; Accommodation is not Excluded Accommodation; and The short-term rental does not constitute an excluded rental relationship.

When is the deadline?

Beginning October 1, new hosts looking to rent out their property for the first time must be licensed before they can accept bookings and host guests.

Existing hosts (with a property previously used by guests on a short-term basis) have until April 1, 2023 to submit an application to the responsible municipality. If the request is denied, the host must cease operations within 28 days.

If an existing host hasn’t submitted a license application by April 1, 2023, they can’t accept bookings or host guests until the license is granted.

By July 1, 2024, all hosts must be licensed to take bookings and host guests.

How do I apply?

There are four types of licenses:

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