Is Airbnb legal in Glasgow?
Don’t worry, Airbnb is legal in Glasgow! But if you’re thinking on hosting in this city, you’d know that there are some strict regulations that you need to follow in order to host legally there.
Currently, there are 2,499 Airbnb listings in Glasgow, with 68% of entire houses earning up to £2,501 a month. The average occupancy rate in Glasgow is 66% and the average daily rate is £120. According to short-term rental data source Airbtics, a 2-bedroom apartment in Glasgow can make up to £43,513 each year.
Short-term rentals policy in Glasgow
In Glasgow hosts will need to get a license to operate their Airbnb rental. Existing hosts will have until 1st April 2023 to apply for a license and all short-term lets must be licensed by 1st April 2024. Those who apply for a license would be required to pay between £125 and £400. According to Glasgow World, the license price varies depending on how many guests can a property host as well as if it’s a primary or secondary letting.
- To apply for a license, owners must provide the following documentation:
- Planning Permission or a Certificate of Lawfulness
- Floor/Layout Plan
- Evidence of Operation as a STL before 1 October 2022
- If the applicant is not the owner of the let, they are required to provide a consent from the owner(s)
- Hosts that have more that one property will need a separate licence for each of them, whether or not they are in the same licensing authority area.
- The regulations forbid short-term rental in flats located to a close with a communal entrance and facilities. However, hosts can rent an individual room in their flat only if they also live there and therefore planning permission is unlikely to be required.
- If the property listed for Airbnb is not the host’s main residence, then they’re required to apply for a Change of Use planning permission from Glasgow local authority.
- Short-term rentals will generally be allowed if they’re located in areas with active travel routes and high accessibility. Hosts will also need to demonstrate that the property won’t have adverse impact on the character, amenities, traffic congestion and parking of the area.
Hosts can use this tool to check whether or not they need a licence, and which type of licence they require.
References: Glasgow STR Policy | Glasgow City Council’s Supplementary Guidance
STL Control Areas
In Scotland, local authorities can designate control areas to manage high concentrations of short-term lets. Hosts with a property located within a control area must get a planning permission to get a license. However, currently there are no control areas planned in Glasgow.
Pros and Cons of running Airbnb in Glasgow
Short-term rentals are vacation rental properties rented out on a short-term basis to guests, like hotels. This form of rental helps guests to feel more at ease and “at home” because the properties are typically designed in this manner.
A long-term rental is the most common sort of rental property utilized for residential purposes. This sort of rental property is usually protected by a long-term lease agreement with more binding terms than a short-term rental. Renting out their homes for a higher price than their mortgage allows them to generate regular income regardless of the market. Because it is more traditional and well-known, most people are more familiar with this sort of rental property.
Now that we’ve defined vacation rentals and long-term rental properties, let’s look at each component of rental properties that explains both the benefits and drawbacks of a short-term or long-term rental.
Pros
Flexibility – You have the option of renting for days, weeks, or months. You can rent as much or as little as you want. There’s also the possibility of going on a trip at any time and earning money while doing so!
Privacy – Short Term Rentals are ideal for families. They provide guests with more privacy and space than standard hotels.
Earns more money than a long-term rental – It’s simple to calculate: £1,500 for a vacation week vs. £1,500 per month to rent for a year.
Good Deductions – There are numerous popular deductions available to rental property owners. Cleaning and maintenance, insurance, management fees, and utilities are just a few of the costs to consider. You may make a loss and avoid paying taxes entirely if you take enough deductions.
Tax Breaks – Short-Term Rental Owners receive the best home-related tax breaks.
Less Wear and Tear on the Property – With frequent renters, you can keep up with tiny repairs before they become major issues!
Social Advantages – There are a lot of interesting people in the world, and many of them travel! Your next acquaintances in a Short Term Rental could evolve into lifelong buddies!
Cons
Inconsistent payments – If you rely on a stable income, a yearly renter is a much safer option. There’s a chance you won’t have a Short Term Renter for weeks or months.
Must cover the utilities – Utility costs are usually paid by long-term renters. Short-term tenants don’t.
Increased risk – There is a higher danger of theft, breakage, or problem tenants because of the number of tourists going through your doors.
Requires extra effort – Running a Short Term Rental requires more effort because you are the innkeeper. You’ll be in charge of collecting money, scheduling clients, and bringing in tenants. You’ll do it every week instead of every 5 years or so!
Additional maintenance expenses – As the landlord, you are responsible for housekeeping, pool maintenance, and general upkeep. Not always the case with a long-term renter.
Some HOA – Managed neighborhoods make it tough and complicated to rent short-term Rentals. People prefer comfortable, peaceful surroundings where they feel safe and know everyone, rather than random strangers coming and going at all hours. They may submit complaints, and some HOAs may sue Short Term Rental Owners.
Conclusion
If you’ve made it this far, you’re thinking of starting an Airbnb.
We’ve been assisting folks like you, who are first-time Airbnb hosts. We don’t provide consulting since we aren’t experts in running Airbnb businesses; but, we do provide useful data to Airbnb hosts such as other best buy to let investment areas in the UK!
You may use the Airbtics dashboard to figure out how much money you can make doing Airbnb in your city. Unlike other online Airbnb income calculators, it will provide you with a lot more useful information, such as
- which neighborhood to target,
- which amenities are in high demand,
- what is the market’s historical performance,
- what are the occupancy rates of a two-bedroom house,
- should I do a two-bedroom house or a three-bedroom house?
Well, if you are new, there are many Airbnb host communities on Facebook. Type “Airbnb host” in the Facebook search, you’ll see plenty of active communities where you can get help from experienced Airbnb hosts.
