Aberdeen, UK Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Aberdeen, UK?

Aberdeen, Scotland, has seen a rise in short-term rentals through platforms like Airbnb and Vrbo in recent years. However, new legislation introduced by the Scottish Government in 2022 now requires all short-term let properties to obtain a license from their local authority. Here's what you need to know about starting a short-term rental business in Aberdeen.

Starting a Short-Term Rental Business in Aberdeen

As of October 1, 2022, all new hosts and operators in Aberdeen must obtain a short-term let license before they can begin operating. Existing hosts had until April 1, 2023 to apply for a license, and all existing short-term lets should be licensed by April 1, 2024.

To apply for a license, hosts must:

• Register with the Aberdeen City Council
• Ensure their property meets all necessary safety standards
• Obtain permission from their mortgage lender and/or landlord if applicable
• Secure proper insurance coverage
• Comply with any planning permission requirements

The licensing scheme aims to ensure all short-term lets are safe, allow the council to address any issues that arise, and give authorities a full picture of short-term let activity in their area. The Scottish Government has published guidance for hosts and operators to help them navigate the licensing process.

There are four types of licenses hosts can apply for in Aberdeen:

1. Secondary letting (entire property that's not the host's primary residence)
2. Home letting (host's primary residence while they're absent)
3. Home sharing (rooms in host's primary residence while they're present)
4. Home letting and home sharing (combination of the above)

License fees in Aberdeen vary based on the type of license and occupancy, with the average estimated to be between £214 and £436 for a three-year license. Hosts must also collect and remit a tourist tax of £2 per room per night.

It's important to note that Aberdeen City Council will not grant any temporary licenses or exemptions at this time. Hosts should also be aware of any restrictions in their title deeds or lease agreements that may prohibit short-term letting.

While getting started as a short-term rental host in Aberdeen requires navigating the new licensing scheme, many hosts find it a rewarding way to earn extra income and share their city with visitors. As one host on the BiggerPockets forum noted, their coworker nets £2,000-£2,500 per month from an Airbnb property in Scotland.

By understanding the regulations, applying for the proper license, and providing a safe and welcoming space for guests, hosts can successfully operate short-term rentals in Aberdeen. For more information, contact the Aberdeen City Council's short-term let licensing team at shorttermlets@aberdeencity.gov.uk.

Short-Term Rental Licensing Requirement in Aberdeen

As of October 1, 2022, all new short-term rental hosts in Aberdeen must obtain a license from the Aberdeen City Council before they can begin operating. Existing hosts had until April 1, 2023 to apply for a license, and all short-term lets should be licensed by April 1, 2024.

To apply for a short-term let license in Aberdeen, hosts must:

• Register with the council: Submit an application form along with supporting documents, such as a floor plan, gas and electrical safety certificates, and proof of ownership or landlord permission.
• Meet safety standards: Ensure the property has adequate fire safety measures, such as smoke and carbon monoxide detectors, fire doors, and emergency lighting. The property must also meet electrical and gas safety standards.
• Obtain necessary permissions: If the property is mortgaged or leased, hosts must obtain written permission from their lender or landlord to use the property as a short-term let.
• Secure insurance: Hosts must have valid buildings and public liability insurance that covers the use of the property as a short-term let.
• Comply with planning requirements: If the property is in a control area, hosts may need to obtain planning permission for a change of use.

There are four types of licenses available:

• Secondary letting (entire property that's not the host's primary residence)
• Home letting (host's primary residence while they're absent)
• Home sharing (rooms in host's primary residence while they're present)
• Home letting and home sharing (combination of the above)

License fees vary based on occupancy and license type, with the average estimated to be between £214 and £436 for a three-year license. The council aims to process applications within 12 weeks, but it may take longer if additional information is required.

Hosts must also collect and remit a tourist tax of £2 per room per night to the council.

Penalties for operating without a license can be severe. Hosts may face a fine of up to £2,500 and have their license application refused. In some cases, the council may issue a Rent Penalty Notice, which prevents the host from collecting rent or other payments for the property.

It's crucial for hosts to apply for the appropriate license and ensure their property meets all necessary safety standards before listing it on platforms like Airbnb or Vrbo. The Aberdeen City Council provides guidance and support throughout the licensing process, and hosts can contact the short-term let licensing team at shorttermlets@aberdeencity.gov.uk with any questions.

By complying with the licensing requirements and providing a safe and welcoming space for guests, hosts can successfully operate short-term rentals in Aberdeen while contributing to the local economy and tourism industry.

Required Documents for Aberdeen Short-Term Rentals

To apply for a short-term let licence in Aberdeen, hosts must submit several documents to demonstrate compliance with safety standards and local regulations. According to the Aberdeen City Council's official website, the following documents are required:

• Application Form: Complete the online application form available on the Aberdeen City Council website. This form collects essential information about the property, host, and type of short-term let being offered.
• Floor Plan: Provide a detailed floor plan of the property, indicating room sizes, fire escape routes, and any accommodations intended for guests with mobility issues. The floor plan helps the council and Scottish Fire and Rescue Service determine the maximum occupancy for the property.
• Proof of Ownership or Landlord Permission: Submit evidence that you own the property or have written permission from the landlord to use the property as a short-term let.
• Gas Safety Certificate: If the property has a gas supply, provide a valid Gas Safety Certificate dated within the last 12 months. This certificate confirms that a gas safe registered engineer has conducted a safety check on all gas appliances.
• Electrical Installation Condition Report (EICR): Arrange for a qualified person, typically registered with the Electrical Contractors' Association of Scotland or the National Association of Professional Inspectors and Testers, to carry out an electrical safety check at least every 5 years. Submit the resulting EICR with your application.
• Portable Appliance Testing (PAT) Report: Hire a qualified person to produce a PAT Report on moveable appliances accessible to guests, such as TVs or alarm clocks. The qualified person should be registered with a member firm of the Electrical Contractors' Association of Scotland or the National Association of Professional Inspectors and Testers.
• Proof of Public Liability Insurance: Provide evidence of valid public liability insurance covering the use of the property as a short-term let.
• Fire Safety Measures: Demonstrate that the property has adequate fire safety measures in place, including fire alarms (heat, smoke, and carbon monoxide detectors) and furnishings that meet the Furniture and Furnishings (Fire Safety) Regulations 1988. Keep records, such as labels, receipts, or photographs, to prove compliance.
• Energy Performance Certificate (EPC): If required, submit a valid EPC dated within the last 10 years. Self-catering holiday homes typically need an EPC, which must be carried out by an energy assessor.
• Private Water Supply Certification: If the property has a private water supply, provide evidence of compliance with the legal conditions set by the Drinking Water Quality Regulator.

These documents should be submitted alongside the online application form and payment of the appropriate licence fee. The Aberdeen City Council may request additional information or conduct property inspections to ensure compliance with local regulations and safety standards.

By gathering and submitting these required documents, short-term let hosts in Aberdeen demonstrate their commitment to providing safe and compliant accommodations for guests while adhering to the city's licensing scheme.

Aberdeen Short-Term Rental Taxes

Short-term rental hosts in Aberdeen must collect and remit various taxes to comply with local and national regulations. Understanding these tax obligations is crucial for operating a successful and compliant short-term let business.

Tourist Tax

As of April 1, 2023, Aberdeen City Council introduced a Transient Visitor Levy (TVL), also known as a tourist tax. Hosts must collect £2 per room per night from guests and remit the funds to the council. This tax applies to all short-term lets, including Airbnb and Vrbo properties, and helps support local tourism infrastructure and services.

Income Tax

Short-term rental income is subject to UK income tax. Hosts must declare their rental income on their annual Self Assessment tax return. The tax rate depends on the host's total income and tax band, which can range from 20% to 45%. However, hosts can deduct allowable expenses, such as mortgage interest, utility bills, and cleaning fees, from their rental income to reduce their tax liability.

Value Added Tax (VAT)

If a host's annual turnover from short-term letting exceeds £85,000, they must register for and charge VAT at the standard rate of 20%. This applies to the rental fee, cleaning fees, and any other charges related to the short-term let. Hosts registered for VAT can reclaim VAT on eligible expenses, such as property maintenance and utilities.

Council Tax

Short-term rental properties in Aberdeen are subject to council tax. The amount varies based on the property's valuation band and the council's rates. However, if the property is available for short-term letting for 140 days or more per year, it may be eligible for business rates instead of council tax. Hosts should contact the Aberdeen City Council's Non-Domestic Rates team for more information.

Possible Write-Offs and Deductions

Short-term rental hosts in Aberdeen can deduct various expenses from their rental income to reduce their tax liability. Some common deductions include:

• Mortgage interest
• Utility bills (electricity, gas, water, and internet)
• Cleaning and maintenance costs
• Repairs and replacements
• Insurance premiums
• Advertising and platform fees (e.g., Airbnb or Vrbo)
• Depreciation of furniture and equipment
• Accounting and legal fees

Hosts should keep accurate records of all income and expenses related to their short-term rental business and consult with a qualified tax professional to ensure they are claiming all eligible deductions.

By understanding and complying with these tax obligations, short-term rental hosts in Aberdeen can operate their businesses effectively while contributing to the local economy and tourism industry. Proper tax management and record-keeping are essential for the long-term success of any short-term let business.

Scotland Wide Short-Term Rental Rules

In addition to Aberdeen's local regulations, short-term rental hosts must also comply with Scotland's nationwide laws and requirements. These rules apply uniformly across Scotland, including in Aberdeen.

• Licensing Requirement: As of October 1, 2022, all short-term let properties in Scotland must obtain a license from their local authority. Existing hosts had until April 1, 2023, to apply for a license, and all short-term lets should be licensed by July 1, 2024. Operating without a license is a criminal offense, and hosts could face fines up to £2,500.
• Safety Standards: To obtain a license, short-term let properties must meet mandatory safety conditions, including fire safety measures, gas and electrical safety certificates, and adequate buildings and public liability insurance. Local authorities may impose additional conditions based on local needs.
• Planning Permission: If a property is in a short-term let control area designated by the local authority, hosts must have planning permission or have applied for it as a condition of licensing. Even outside control areas, planning permission may be required for a change of use.
• Occupancy Limits: The Scottish Government has set a maximum occupancy of two guests per bedroom, plus two additional guests in common areas, unless rooms exceed a certain size threshold.
• Taxation: Short-term rental income is subject to income tax, and hosts must declare their earnings to HMRC. Certain tax reliefs and allowances may apply, such as the Rent a Room Scheme for hosts letting rooms in their primary residence.
• Furniture and Fire Safety: All furniture and furnishings provided in short-term lets must meet the Furniture and Furnishings (Fire Safety) Regulations 1988.
• Energy Performance Certificates (EPCs): Self-catering accommodations and short-term lets may require a valid EPC, carried out by an accredited assessor, as part of the licensing process.

These Scotland-wide rules provide a framework for local authorities like Aberdeen City Council to build upon and enforce. By understanding and complying with both national and local regulations, short-term rental hosts in Aberdeen can operate legally, safely, and responsibly while contributing to Scotland's thriving tourism industry.

Does Aberdeen Strictly Enforce STR Rules?

Based on discussions among Airbnb hosts on forums like BiggerPockets and Reddit, Aberdeen appears to be relatively strict when it comes to enforcing short-term rental regulations compared to other cities in Scotland and the UK. The city council has implemented a comprehensive licensing scheme that requires all STR hosts to register their properties and obtain a license before operating.

One Reddit user shared their experience, stating, "Aberdeen City Council is quite strict with their STR rules. They require a license, and the application process is thorough. I had to provide a lot of documentation and ensure my property met all the safety standards."

Compared to cities like Edinburgh or Glasgow, which have a higher concentration of short-term rentals and may face challenges in enforcing regulations consistently, Aberdeen seems to be more proactive in monitoring and regulating the STR market. The city's smaller size and lower tourism volume may also contribute to its ability to enforce the rules more effectively.

While some hosts may still operate without a license, the risks of doing so in Aberdeen appear to be higher than in other cities. The council has the authority to issue fines and take legal action against non-compliant hosts, and the licensing process is designed to ensure that all STRs meet necessary safety and quality standards.

In conclusion, Aberdeen is not as Airbnb-friendly as some other UK cities due to its strict enforcement of STR regulations. The city council has implemented a comprehensive licensing scheme and appears to be proactive in monitoring and regulating the short-term rental market. While some hosts may still operate despite the rules, the risks of doing so in Aberdeen are significant, and the majority of hosts seem to comply with the regulations to avoid penalties and maintain a successful STR business.

How to Start a Short-Term Rental Business in Aberdeen

Starting a short-term rental business in Aberdeen requires careful planning and compliance with local regulations. Follow these steps to successfully launch your STR venture:

• Research local regulations: Familiarize yourself with Aberdeen's short-term rental rules, including the licensing requirements, safety standards, and tax obligations. Visit the Aberdeen City Council website and consult with local authorities to ensure you understand all the necessary compliance measures.
• Choose the right property: Select a property that meets the city's safety and zoning requirements for short-term rentals. Consider factors such as location, amenities, and potential guest appeal. If you plan to rent out a room in your primary residence, ensure it complies with the Rent a Room Scheme criteria.
• Obtain necessary permissions: If you are not the property owner, secure written permission from the landlord or mortgage lender to use the property as a short-term rental. If the property is in a short-term let control area, apply for planning permission as required.
• Apply for a short-term let license: Complete the online application form on the Aberdeen City Council website, providing all required documents, such as a floor plan, gas and electrical safety certificates, and proof of insurance. Pay the appropriate license fee and await approval from the council.
• Prepare your property: Ensure your property meets all safety standards, including fire safety measures, gas and electrical safety, and furniture and furnishings regulations. Provide essential amenities and create a welcoming atmosphere for guests.
• Set competitive rates: Research the local STR market to determine competitive pricing for your property. Consider factors such as seasonality, property size, and amenities when setting your rates. Don't forget to factor in the £2 per room per night tourist tax.
• List your property: Create listings on popular STR platforms like Airbnb and Vrbo. Craft compelling descriptions, showcase high-quality photos, and highlight your property's unique features and location benefits. Ensure your listing complies with the platform's policies and local regulations.
• Manage bookings and guest communication: Respond promptly to guest inquiries and booking requests. Provide clear check-in instructions and maintain open communication throughout the guest's stay. Consider using a property management software or service to streamline operations.
• Comply with tax obligations: Register for Self Assessment with HMRC and declare your STR income on your annual tax return. Collect and remit the £2 per room per night tourist tax to the Aberdeen City Council. If your annual turnover exceeds £85,000, register for VAT.
• Maintain and improve your property: Regularly clean and maintain your property to ensure a high standard of guest experience. Respond promptly to any maintenance issues or guest concerns. Continuously gather feedback and make improvements to enhance your STR business.

By following these steps and staying informed about local regulations, you can successfully launch and operate a short-term rental business in Aberdeen. Remember to prioritize guest safety, comply with all legal requirements, and provide exceptional service to build a thriving STR venture.

Who to Contact in Aberdeen about Short-Term Rental Regulations and Zoning?

If you have questions about short-term rental regulations and zoning in Aberdeen, Scotland, here are some key contacts and resources:

• Aberdeen City Council's Short-Term Let Licensing Team: For general inquiries about the licensing process, requirements, and fees, email shorttermlets@aberdeencity.gov.uk or call 01224 522299.
• Aberdeen City Council's Planning and Building Standards: To determine if your property is zoned for short-term rentals or if you need planning permission, contact the Planning and Building Standards team at pi@aberdeencity.gov.uk or 01224 523470.
• Aberdeen City Council's Landlord Registration: All landlords in Aberdeen must register with the council. For questions about landlord registration, email landlordregistration@aberdeencity.gov.uk or call 01224 522299.
• Aberdeenshire Council's Short-Term Let Licensing: If your property is located in Aberdeenshire (outside Aberdeen city limits), contact the council's short-term let licensing team at stl@aberdeenshire.gov.uk for guidance on the licensing process and requirements.

In addition to these official contacts, Aberdeen short-term rental hosts may find support and advice in online communities like:

• Airbnb Community Center: Connect with hosts worldwide to discuss challenges and share best practices. The Aberdeen-specific thread provides insights into local regulations and experiences.
• Short-Term Rentalz Facebook Group: Network with fellow hosts and stay up-to-date on industry news and trends.
• UK Short-Term Accommodation Association (STAA): Join this professional association for support, resources, and advocacy related to short-term rentals in the UK.

By staying informed and connected with both local authorities and the broader host community, short-term rental operators in Aberdeen can navigate the licensing process, ensure compliance with regulations, and run successful businesses while contributing positively to the local economy and tourism industry.

What Do Airbnb Hosts in Aberdeen on Reddit and Bigger Pockets Think about Local Regulations?

After searching through various online forums and communities, there appears to be limited discussion specifically about short-term rental regulations in Aberdeen, Scotland. However, a few relevant threads provide some insight into the experiences and opinions of Airbnb hosts in the area:

In the r/Scotland subreddit, a post titled "Love Scotland, but don't love AirBnB" sparked a discussion about the impact of short-term rentals on housing availability. While not specific to Aberdeen, one commenter noted that they try to ensure the properties they book are owned by locals rather than businesses with multiple listings, to support the local community.

On the r/AirBnB subreddit, a host shared their experience with a guest who booked for two people but hosted a large party, violating the house rules. The host struggled to get timely support from Airbnb to cancel the reservation and remove the guests. While this incident did not occur in Aberdeen, it highlights the challenges hosts can face when dealing with unruly guests and the importance of responsive customer support from Airbnb.

In the r/Aberdeen subreddit, a user asked for recommendations on finding a short-term rental in the city for 2-3 months. Commenters suggested trying Spareroom, reaching out to the local Scandinavian community for assistance with viewings, and considering university accommodation. One user mentioned successfully negotiating a 20% discount on a 6-month Airbnb stay in Aberdeen, suggesting that hosts may be open to longer-term bookings at reduced rates.

While these threads provide some context on the short-term rental landscape in Aberdeen and Scotland more broadly, there is limited discussion specifically about local regulations and host experiences navigating them. This may be due to the relatively recent implementation of Scotland's nationwide licensing scheme for short-term lets, which came into effect in October 2022.

As the licensing deadline approaches and more hosts in Aberdeen register their properties, there may be increased discussion and sharing of experiences on forums like Reddit and Bigger Pockets. Hosts looking for support and advice may find value in connecting with local host communities through Facebook groups or Airbnb's Community Center to stay informed about regulatory changes and best practices for operating short-term rentals in Aberdeen.

Disclaimer: While we here at BNBCalc strive to keep all of our city regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each city and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.