Thinking of doing holiday lets

MynameisMichaelCane

I am in the process of buying a property which I intend to live in for the time being , but I am considering renting it out for holiday lets in the future. From what I have read on these forums and elsewhere, there are lots of rules and regulations, financial and otherwise, that I should think about before I go down that route. Is there a good website where I can find all the information I need to help me make a decision? I am in Scotland if that makes a difference.

gwynlas

The larger holiday letting companies have information on their websites for potential owners that you might find useful.

Some list homes for sale with proven income

SiliconChip

Whatever sites you look at for information you must ensure that they are referring to Scotland, the regulations for letting in Scotland are stricter than those in England (compulsory registration for landlords for instance) and while I don't know the regulatory franework for holiday letting I suspect it's likely that there will be significant differences to the rest of the UK.

poseidon1

https://forums.moneysavingexpert.com/discussion/6664803/thinking-of-doing-holiday-lets

Scotland has very strict short lets regime, possibly the most stringent in the UK -

https://www.gov.scot/publications/short-term-lets/

_Penny_Dreadful

https://forums.moneysavingexpert.com/discussion/6664803/thinking-of-doing-holiday-lets

The mygov.scot website has a lot of information about your legal obligations.

You must have a licence to operate a short-term let in Scotland. Councils can designate control areas to manage high concentrations of short-term lets. The whole of the Edinburgh City Council area is a control area and Badencoch and Strathspey ward in the Highland Council is another. In control areas you may require planning permission to turn the property into a short-term rental.

If it's a flat that you're buying then the neighbours can complain to the council about breaches to the terms of your licence e.g. guests being noisy or antisocial and you can be fined and/or have your licence revoked.

If the short-term rental is available for commercial letting as a holiday accommodation for at least 140 days in the tax year then you need to pay non-domestic rates on the property rather than council tax.

If you're buying with a mortgage then the lender is unlikely to allow letting the property on a short-term basis rather than a PRT.

user1977

What are your plans for when you start the holiday letting? Would you be buying another property to live in? Bear in mind the additional rate of LBTT for buying the second property (currently 8%).

MynameisMichaelCane

Thanks for the replies. Scotland certainly seem to be making it complicated to do holiday lets. Perhaps they are trying to discourage them.

Interesting point about the additional LBTT. I am selling my current home and moving into the new one, so no additional LBTT will apply. I am considering the holiday let idea because at some point in the future I may need to move in with an elderly relative to care for them. It makes me wonder if people get round the second property rate by being in rented accommodation themselves and doing holiday lets in a property they buy.

_Penny_Dreadful

https://forums.moneysavingexpert.com/discussion/comment/81970519#Comment_81970519

Have you considered a regular PRT instead of a holiday let? Yes, you still need to register as a landlord, get annual GSC (if applicable), EICR, EPC, etc but if you have a mortgage your lender will probably grant consent to let for a PRT but not holiday lets. It also means you’re not a risk of being in a designated control area when the time comes.

MynameisMichaelCane

Thanks. I will look into PRT.

sheramber

Would you be living near the flat when let out?

What would you do about cleaning, changing beds, laundering bedding etc at the end of each let?

Is the flat in a tourist area where people want to stay?