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Airbnb regulations in Edinburgh - 2022 Update
*Please note that regulations regarding short-term rentals tend to change often. We will update this article regularly but please consult a legal advisor first, before setting up a short-term rental business.
Edinburgh has cemented its position as a popular cultural and touristic destination through the years. From theatre fans, to film aficionados and architecture fans - Edinburgh is a popular destination for visitors from around the world.
For short-term rentals managers and landlords, Edinburgh properties deliver consistently good results: an average daily rate per room varies seasonally from £119 to £202 with a 45-96% occupancy rate, and average monthly revenue of £2,523 (AirDNA stats, November 2022).
2022 brought some serious changes in legislation for short-term rentals in Edinburgh. The Scottish Parliament approved the short-term lets legislation on 19 January 2022. Edinburgh Council established short-term lets licensing scheme by 1 October 2022.
If you’re thinking of setting up your own Airbnb lettings business, you must be aware of the regulations. Read below to find out more.
IMPORTANT: Edinburgh - short-term let control area
Starting October 2022, hosts with second homes in Edinburgh need to apply for planning permission to continue hosting on Airbnb.
Edinburgh City Council has established a short-term lets control area, which covers the entire local authority area. Any property that is not your primary residence (in the Edinburgh Council area) will require planning permission to operate as a short-term let unless it has operated for at least ten years without it.
Screenshot of the Edinburgh Council Website, November 2022
Do I need to apply for planning permission in Edinburgh?
This rule will affect hosts who rent out their entire property other than their primary residence. Those hosting in their primary residence are not affected by this.
There are some limited exceptions. For example, if the property is your primary residence and/or if you have rented the property for more than 10 years.
How can I apply for planning permission for Airbnb in Edinburgh?
Online applications are available from the Edinburgh Council website. To find out how to do this and for general guidance, click here.
To make its decision, the Council will take into account "The Development Plan" and any other "material considerations" relevant to the application. As a result of your application, neighbouring property owners and occupiers (all within 20 metres of the property) will be notified.
Screenshot of the form on the Edinburgh Council Website
How much does planning permission cost?
The Edinburgh Council charges a fee for applications. According to the property's gross floorspace, the fee will vary:
Up to 100 m² – £600
Between 100 – 4000m² – £600 plus £600 for every 100 m² up to 4000 m²
More than 4000 m² – £24,000 plus £300 per 100 m² metres above 4000 m²
Suppose I don't submit a planning application for my short-term rental property in Edinburgh?
Under Planning Legislation, Edinburgh Council can enact enforcement actions to stop short-term rentals from operating. You will likely receive an enforcement notice ordering you to cease operating the property as a short-term rental let. The Council decides to determine the deadline for compliance, but it must be at least 28 days. If you fail to comply with an enforcement notice, the Council may serve you with a fixed penalty notice. This will require you to pay a fine of up to £2000 or if you commit serious issues or repeat offences, you may receive a fine of up to £20,000.
What are my options if my application is rejected?
The appeals process is available if your planning application is refused or a decision is not taken within two months of your submission.
When my application is approved, does my property automatically receive planning permission?
Once planning permission has been granted, it becomes a part of the property and can be used by anyone. The buyer can use your property for short-term letting without obtaining new planning approval if you sell your property.
This is different from the license requirement that takes effect on 1st October 2022.
Have you heard of KeyNest?
Try KeyNest Points if you are an Edinburgh landlord or host looking for a time and cost-saving solution for key management and check-ins.
If you drop a key off with KeyNest, guests, cleaners, or contractors will safely be able to retrieve the key from one of the 4.000 points (usually from a local store or cafe). Each time the key is picked up and returned, you will receive a notification. To make checking in and out easier, you can set custom times according to your convenience.