A holiday letting agency has criticised the introduction of licensing for short term rentals in Scotland as “poorly thought-through and ill-timed”. 

Iain McDonald, a manager at Finest Retreats, says his agency has been inundated with calls in the past fortnight from current and future owners. 

“Scotland is one of our key areas for growth,” says McDonald “yet many owners there are either unaware of the new licensing requirement, or aware but confused by the complex application process and specific constraints applicable to each locality.

“With limited awareness of the new requirement, four different types of licences, and differences in implementation depending on which local authority the property falls under, it seems as though this new requirement has been designed to be as unwieldy as possible,” says McDonald.

Property owners in Edinburgh are subject to an additional hurdle as properties in the city’s Planning Control Area also have to submit a planning application in order to let the property on a short term basis, as well as apply for a lettings licence. 

McDonald suggests that other areas of Scotland may follow this lead with Badenoch & Strathspey having already applied for PCA status. Planning applications can take up to three months.

These new rules apply to all types of short term lettings and while the initial licence may last for three years, it will then need to be renewed.

The company claims this is off-putting to new entrants to the market, given that from this week they will not be permitted to take bookings or deposits until they are fully licenced. 

The additional costs involved with licence fees as well as income lost while awaiting the outcome of a licence application are all going to impact owners first, but also likely be passed on to guests, says Finest Retreats