Long-Term Lets Offer Solution To Airbnb Dilemma For Edinburgh Landlords

With Edinburgh’s popularity as both a business and tourist destination, owning an Airbnb or holiday let has traditionally been a popular choice with property investors.

A steady stream of business visitors plus the influx of tourists during the Edinburgh festival season has provided a year-round supply of customers looking for places to rent on a short-term basis.

Demand is still strong but new legislation means everything has now changed and landlords are faced with the possibility of empty properties and no income from lettings.

Edinburgh Introduces New Short-Term Let Licensing Scheme

Last October, Edinburgh City Council introduced a licensing scheme for short-term lets. It followed a new act brought in by the Scottish Government designed to reduce anti-social behaviour and crime, especially in rental properties with shared access.

To be granted a licence, landlords must apply for planning permission to switch from residential to short-term lets. But if their property is in a tenement building it’s likely to be refused unless all the neighbouring owners agree.

Existing landlords have until October 1, 2023 to submit their applications, while new short-term lets must be licensed by July 1, 2024. Temporary licences can be granted for specific events such as the Edinburgh Fringe or a sporting occasion but these must be applied for in advance.

So with the likelihood of being turned down for a licence, plus strict new safety requirements that must be fulfilled for short-term lets, what’s the alternative for the owners of Edinburgh’s Airbnbs?

Look To Long-Term Letting in Edinburgh

While holiday lets can be lucrative, they require a great deal of attention and can be time-consuming and frustrating. Long-term lets, on the other hand, provide stability and a regular income.

With a long-term let, there’s less risk of the property sitting empty and not earning money. Long-term tenants are also more likely to look after the property because they’ve made it their home – and using a letting agent to manage everything completely removes all the hassle.

High Demand

As the last Citylets Market Report highlighted, Edinburgh has a massive shortage of homes for rent in all areas and of all sizes, from one-bedroom flats to larger family properties. Vacant homes are snapped up in just days, often before they’re even advertised, and rents are at an all-time high.

Savvy holiday rental owners are ahead of the curve and have already started to move to long-term rentals, taking advantage of the excellent market conditions and high demand.

Make A Move

Making a move now could prove to be a smart step, and Clan Gordon can offer expert advice about switching, including guidance on setting a fair rent and advertising a property for maximum impact.

So if you’re the owner of an Edinburgh holiday rental looking for long-term stability and reduced void periods, click here to schedule a call with one of our property management advisors.

Connect With Us On Social Media