Understanding Airbnb Regulations in Glasgow: 2023 Airbnb Host Guide

Nestled in the vibrant country of Scotland, Glasgow is a city brimming with history, culture, and captivating attractions. Known for its architectural wonders, world-class museums, and warm hospitality, Glasgow entices travelers from all corners of the globe. This bustling city also plays host to several annual events that draw in hordes of tourists, further enhancing its allure as a popular holiday destination. In fact, this year, Glasgow is gearing up for an exciting event that promises to captivate visitors and locals alike.

Before delving into the regulations that govern short-term rentals in Glasgow, let's take a moment to understand the current state of the market. According to data from Airdna, Glasgow boasts a thriving short-term rental market. The average room rate in the city is £126, offering a promising return on investment for potential hosts.

Occupancy rates vary through the year, from 45% in January to 82% in August. The median monthly revenue from Airbnb is £1,690, making hosting a promising activity. However - and that’s a big one - as you read further, Glasgow is a rather tricky city to operate a short term rental in.

Main Policies for Airbnb Rentals in Glasgow:

Short-Term Rental Registration:

*Source: https://www.glasgowtimes.co.uk/news/22562451.glasgow-short-term-lets-like-airbnb-need-licence-conditions-agreed/*

In Glasgow, hosts are required to register their property as a short-term rental with the local authorities. This registration ensures that your rental property complies with the necessary regulations and safety standards. It is essential to complete this process before listing your property on platforms like Airbnb.

Existing hosts are given a grace period until October 1, 2023, to submit their license applications. Anyone who operated a short-term let before October 1, 2022 can still accept bookings and guests until an application is determined, but must apply before the October 1, 2023 deadline. Owners who started operations after October 1, 2022 cannot begin trading until they receive their licence.

The licensing fees for hosts in Glasgow range from £125 to £400, as reported by Glasgow World. The exact price of the license is determined based on factors such as the maximum number of guests a property can accommodate and whether it is a primary or secondary letting. Any application to vary a licence would cost £75.

*Source: https://www.glasgow.gov.uk/stl*

To initiate the license application process, owners must gather the following documentation:

Planning Permission or Certificate of Lawfulness: Hosts are required to provide evidence of obtaining planning permission or a Certificate of Lawfulness for their property's use as a short-term rental. This documentation ensures that the property meets the necessary regulations and requirements.
Floor/Layout Plan: A detailed floor or layout plan of the property should be submitted as part of the license application. This plan helps authorities assess the suitability of the property for short-term rental purposes.
Evidence of Operation as a Short-Term Let (STL) before October 1, 2022: Hosts must provide evidence showcasing that their property has been operating as a short-term let prior to October 1, 2022. This requirement helps distinguish existing hosts from new applicants.
Consent from Owner(s) (If the applicant is not the property owner): In cases where the applicant is not the owner of the property, they must obtain consent from the owner(s) to operate the short-term rental. This consent serves as proof of authorization for the applicant to apply for the license.

Hosts can use this tool to check whether or not they need a licence, and which type of licence they require.

Does the 90-day rental rule apply to properties in Glasgow?

No, the 90-day rental rule does not apply to properties in Glasgow. This rule is specific to London and does not extend to other areas, including Glasgow. Hosts in Glasgow are not restricted by a maximum limit of 90 rental days per year and have more flexibility in terms of the duration of their short-term rentals.

Taxes on Short-Term Property Rentals in Glasgow:

Council Tax:

When providing short-term rental stays in Glasgow, hosts are generally required to pay council tax on the property. Even if you qualify for a reduction or exemption, council tax remains applicable to short-term rental properties. However, it's important to check with the local council for specific regulations and any potential exemptions that may apply to your situation.

Business Rates Exemption:

In some cases, hosts may be exempt from council tax if they are liable for business rates on their short-term rental property. Business rates are a form of taxation imposed on non-domestic properties used for commercial purposes. If your short-term rental qualifies as a business property, you may be eligible for an exemption from council tax. It is recommended to verify this information with the local council or seek professional advice.

Tax-Free Allowance:

Regarding tax obligations on short-term rentals, there is a tax-free allowance provided by the government. If you are letting out accommodation in your primary residence (or permanent residence), you can earn up to £7,500 annually tax-free. This allowance falls under the "Rent a Room" scheme, which is administered by the government. It's important to note that regular rental income tax rules apply if you are renting out a second home or a property that is not your primary residence. For more details and specific guidelines, it is recommended to visit the government's official website or consult with a tax professional.

Please keep in mind that tax regulations and allowances can change over time. It's essential to check the latest information and guidelines from official government sources or consult with a tax professional to ensure compliance with current tax obligations for short-term rentals in Glasgow.

Should I apply business rates on my short-term property in Glasgow?

The application of business rates on your short-term property in Glasgow depends on various factors, including the number of days in a year that you let it out. Business rates are a form of taxation imposed on non-domestic properties used for commercial purposes. Here are some considerations:

Primary Residence: If you are renting out your primary residence in Glasgow on a short-term basis for a limited number of days per year, it is less likely that business rates would apply. In such cases, the property is typically considered for residential use and subject to council tax rather than business rates.
Commercial Use: However, if you are consistently renting out your property for a significant number of days throughout the year and it is considered to be used for commercial purposes, business rates may come into play. The specific threshold for the number of days may vary, and it is essential to check with the local council or seek professional advice to determine whether your property qualifies for business rates.
Exemptions and Relief: There are instances where certain exemptions or relief may apply to business rates for short-term rental properties. It is advisable to consult with the local council or a tax professional to understand if any specific exemptions or relief schemes are applicable to your situation.

Given the complex nature of business rates and the varying circumstances of each short-term rental property, it is recommended to reach out to the local council or seek professional advice to determine whether business rates apply to your specific property in Glasgow. They can provide you with accurate information based on the current regulations and guidelines.

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Our extensive network of over 4,000 points, typically located in local stores or cafes, allows for easy key retrieval at a location near your property. With each pickup and return, you'll receive timely notifications, keeping you informed throughout the process.

Setting custom check-in and check-out times is made effortless with KeyNest. Tailor the schedule according to your convenience, making the entire process more flexible and accommodating for both you and your guests.

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Experience the efficiency and peace of mind that comes with KeyNest. Discover more about our services and find the nearest KeyNest Point to your property in Glasgow by visiting our website: https://keynest.com/.