Cardiff Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in Cardiff

Cardiff, the vibrant capital of Wales, has seen a surge in short-term rental properties like Airbnb and VRBO in recent years. With its rich history, stunning landscapes, and thriving cultural scene, the city has become a sought-after destination for travelers. However, before diving into the short-term rental business, it's crucial to understand the regulations governing this industry in Cardiff.

According to Airbtics, Airbnb is legal in Cardiff, and the city currently has over 13,000 nights available on the platform. The website reports that there are 956 Airbnb listings in Cardiff, with 61% of entire houses earning up to £2,873 a month. The average occupancy rate is 40%, and the average daily rate is £393.

Licensing and Registration Requirements

The Housing (Wales) Act 2014 requires all landlords with property in Cardiff to register with Rent Smart Wales and either be licensed themselves if they're 'self-managing' or use a licensed agent. This compulsory landlord registration and licensing scheme aims to ensure that short-term rental properties meet certain safety and quality standards.

Additionally, the Welsh Government is planning to introduce controls to limit the numbers of second homes and holiday lets, as well as a licensing scheme for anyone wanting to list units on booking platforms such as Airbnb.

Planning Permission and Zoning Regulations

According to KeyNest, if you plan to rent out your property as a short-term rental for more than 90 nights per year in Cardiff, you will require planning permission. This regulation aims to strike a balance between the growing short-term rental market and the availability of long-term housing for residents.

The UK government has also announced a Short-Term Rental Registration Scheme that will require all short-term rental property owners in England (including Cardiff) to register their properties with local authorities. This scheme, expected to roll out in 2024, emphasizes safety standards, quality assurance, and transparency in the short-term rental market.

Taxes and Council Fees

Short-term rental hosts in Cardiff are required to pay Council tax, which is a local tax levied on domestic properties. Additionally, hosts may need to consider other taxes, such as income tax on rental income, depending on their specific circumstances.

Community Concerns and Anecdotes

On Reddit, some users have shared their experiences and concerns regarding short-term rentals in Cardiff. One user mentioned the Campanile Hotel as an option for short-term accommodation, while others discussed the availability of student halls and private rentals for short-term stays.

However, there have also been discussions about the potential impact of short-term rentals on the availability of long-term housing for residents. Some users have expressed concerns about the potential for neighborhoods to become overrun with short-term rentals, affecting the character and community feel of the area.

In conclusion, while short-term rentals are legal in Cardiff, there are specific regulations and requirements that hosts must adhere to, including licensing, registration, planning permission, and tax obligations. It's essential to familiarize yourself with these regulations and consider the potential impact on the local community before starting a short-term rental business in Cardiff.

Short-Term Rental Licensing Requirement in Cardiff

In Cardiff, short-term rental hosts are required to obtain a license from Rent Smart Wales, a government-run licensing authority. This licensing scheme is mandatory for all landlords and agents operating in the private rented sector, including those offering short-term rentals.

The licensing process involves several steps and requirements. First, landlords must register with Rent Smart Wales and undergo training to obtain a license. The training covers topics such as landlord responsibilities, tenant rights, and property management best practices.

Once registered, landlords must comply with the Rent Smart Wales Code of Practice, which outlines the standards and obligations for licensed landlords. These include ensuring the property is safe and well-maintained, providing tenants with written agreements, and protecting tenant deposits.

Additionally, landlords must undergo criminal record checks and provide proof of their identity and address. The licensing fee varies depending on the number of properties owned and the duration of the license.

It's important to note that failure to obtain a license or comply with the licensing requirements can result in significant penalties, including fines and potential prosecution.

The licensing scheme aims to improve the quality and safety of rental properties in Cardiff, while also providing a level of accountability and oversight for short-term rental hosts. By ensuring that hosts meet certain standards and undergo training, the scheme aims to protect the rights of guests and maintain a positive reputation for the short-term rental industry in the city.

Required Documents for Cardiff Short-Term Rentals

When operating a short-term rental business in Cardiff, hosts are required to provide certain documents to comply with local regulations. Here are some of the essential documents you may need:

• Proof of Identity and Address: Landlords must provide proof of their identity and address as part of the licensing process with Rent Smart Wales. This typically includes a valid photo ID and a recent utility bill or bank statement.
• Criminal Record Check: Rent Smart Wales requires landlords to undergo a criminal record check, which involves submitting a Disclosure and Barring Service (DBS) certificate or equivalent.
• Property Safety Certificates: Hosts may need to provide safety certificates for their rental properties, such as gas safety certificates, electrical installation condition reports, and fire safety certificates. These documents ensure that the property meets the required safety standards.
• Energy Performance Certificate (EPC): An EPC is a legal requirement for all rental properties in the UK, including short-term rentals. It provides information about the energy efficiency of the property and includes recommendations for improving its energy performance.
• Inventory and Condition Report: It is advisable to create a detailed inventory and condition report for the rental property, documenting the state of the property and its contents. This report can be used as evidence in case of disputes or damage claims.
• Insurance Documents: Hosts should obtain appropriate insurance coverage for their short-term rental business, such as public liability insurance and landlord insurance. Copies of these insurance documents may be required.
• Planning Permission: If you plan to rent out your property as a short-term rental for more than 90 nights per year in Cardiff, you will need to provide documentation proving that you have obtained the necessary planning permission.
• Registration with Local Authorities: Depending on the specific regulations in Cardiff, hosts may need to register their short-term rental properties with the local council or other relevant authorities. This registration process may require additional documentation.

It's important to note that the required documents may vary based on the specific circumstances of your short-term rental business and any updates to local regulations. It is advisable to consult with the relevant authorities or seek professional advice to ensure compliance with all applicable laws and regulations.

Cardiff Short-Term Rental Taxes

Operating a short-term rental business in Cardiff comes with various tax obligations that hosts must comply with. Here are some of the key taxes that short-term rental hosts in Cardiff may need to consider:

1. Income Tax: Any income generated from short-term rentals is considered taxable income by Her Majesty's Revenue and Customs (HMRC). Hosts must report their rental income on their annual tax return and pay the appropriate amount of income tax based on their total taxable income.
2. Council Tax: Short-term rental hosts in Cardiff are required to pay Council Tax, which is a local tax levied on domestic properties. The amount of Council Tax payable depends on the property's value and the local council's tax rates.
3. Value Added Tax (VAT): If the annual turnover from short-term rentals exceeds the VAT registration threshold (currently £85,000 in the UK), hosts may need to register for VAT and charge VAT on their rental income. VAT returns must be filed regularly, and the collected VAT must be remitted to HMRC.
4. Non-Resident Landlord Scheme: If the short-term rental host is a non-resident landlord (living outside the UK), they may need to register with the Non-Resident Landlord Scheme and pay tax on their rental income through this scheme.
5. Capital Gains Tax: If a host decides to sell their short-term rental property, they may be liable for Capital Gains Tax on any profit made from the sale. The amount of tax payable depends on various factors, such as the property's value, the length of ownership, and the host's personal tax situation.

It's important to note that tax regulations and rates can change over time, and hosts should seek professional advice from a qualified accountant or tax advisor to ensure they are complying with all applicable tax laws and regulations. Failure to pay the required taxes can result in penalties and interest charges from HMRC.

Cardiff Wide Short-Term Rental Rules

Cardiff, like many other cities in the UK, has implemented specific regulations to govern the short-term rental market. These rules aim to strike a balance between promoting tourism and protecting the interests of local communities. Here are some of the key short-term rental rules that apply across Cardiff:

1. Planning Permission Requirement: If you plan to rent out your property as a short-term rental for more than 90 nights per year in Cardiff, you will require planning permission from the local authority. This regulation is in place to prevent the over-concentration of short-term rentals in residential areas, which could potentially disrupt the character of neighborhoods.
2. Licensing and Registration: The Welsh Government has announced plans to introduce a licensing scheme for anyone wanting to list units on booking platforms such as Airbnb. While the details of this scheme are still being finalized, it is expected to include requirements for hosts to register their properties and comply with certain safety and quality standards.
3. Council Tax: Short-term rental hosts in Cardiff are required to pay Council Tax, which is a local tax levied on domestic properties. The amount of Council Tax payable depends on the property's value and the local council's tax rates.
4. Noise and Nuisance Regulations: Like any other residential property, short-term rentals in Cardiff are subject to noise and nuisance regulations. Hosts are responsible for ensuring that their guests do not cause disturbances or engage in activities that may negatively impact the surrounding community.
5. Fire Safety and Building Regulations: Short-term rental properties must comply with fire safety regulations and building codes to ensure the safety of guests. This may include requirements for smoke detectors, fire extinguishers, and emergency exit routes.

It's important to note that these rules are subject to change, and it is advisable for short-term rental hosts to stay informed about any updates or modifications to the regulations. Additionally, some specific neighborhoods or areas within Cardiff may have additional restrictions or guidelines in place.

Does Cardiff Strictly Enforce STR Rules? Is Cardiff Airbnb-friendly?

Based on the information gathered from Reddit and other sources, it appears that Cardiff is relatively strict in enforcing its short-term rental rules and regulations compared to some other cities in the UK. While Airbnb and other short-term rentals are legal in Cardiff, there are several requirements and restrictions that hosts must adhere to.

One of the key regulations in Cardiff is the requirement for planning permission if a property is rented out as a short-term rental for more than 90 nights per year. This rule aims to strike a balance between the growing short-term rental market and the availability of long-term housing for residents. Failure to obtain the necessary planning permission can result in enforcement actions and penalties.

Additionally, all short-term rental hosts in Cardiff must register with Rent Smart Wales and obtain a license, which involves undergoing training and complying with the Rent Smart Wales Code of Practice. This licensing scheme is mandatory for all landlords and agents operating in the private rented sector, including those offering short-term rentals.

From the Reddit discussions, it is evident that some users have faced challenges in finding short-term rental accommodations in Cardiff for stays shorter than six months. The legal minimum tenancy length in Wales is six months, making it difficult to secure traditional tenancies for shorter periods. This has led many users to explore options like Airbnb, student accommodations, or lodging arrangements.

How to Start a Short-Term Rental Business in Cardiff

Starting a short-term rental business in Cardiff requires careful planning and adherence to local regulations. Here are the steps you should follow:

1. Research the Market: Conduct thorough market research to understand the demand for short-term rentals in Cardiff, identify potential competition, and determine the most suitable areas for your rental property.
2. Obtain Necessary Licenses and Permits: In Cardiff, you must register with Rent Smart Wales and obtain a license if you plan to self-manage your rental property. Additionally, if you intend to rent out your property for more than 90 nights per year, you will need to secure planning permission from the local authority.
3. Choose the Right Property: Select a property that meets the requirements for short-term rentals in Cardiff. Consider factors such as location, size, amenities, and potential rental income.
4. Prepare the Property: Ensure that your rental property meets all safety standards and is furnished and equipped to provide a comfortable stay for guests. This may include installing smoke detectors, fire extinguishers, and providing essential amenities.
5. Determine Pricing: Research comparable properties in the area and set competitive pricing for your short-term rental. Consider factors such as seasonality, demand, and the amenities you offer.
6. Create a Listing:Develop a compelling listing for your short-term rental, including high-quality photographs, detailed descriptions, and a clear outline of the house rules and policies for guests.
7. List on Platforms: List your short-term rental on popular platforms such as Airbnb, VRBO, and Booking.com to increase visibility and reach potential guests.
8. Obtain Necessary Insurance:Invest in appropriate insurance coverage, such as public liability insurance and landlord insurance, to protect yourself and your property.
9. Manage Bookings and Guest Communication: Establish a system for managing bookings, guest inquiries, and communication. Consider using property management software or hiring a professional management company to streamline operations.
10. Comply with Tax Obligations: Understand and comply with all tax obligations related to short-term rentals in Cardiff, including income tax, Council tax, and any applicable Value Added Tax (VAT).
11. Maintain and Promote Your Listing: Regularly update your listing with new photographs, respond promptly to guest inquiries, and actively promote your short-term rental through various marketing channels.
12. Provide Excellent Guest Experience: Ensure that your guests have a memorable and enjoyable stay by providing exceptional customer service, maintaining cleanliness, and addressing any concerns or issues promptly.

Remember, starting a short-term rental business in Cardiff requires diligence, attention to detail, and a commitment to providing a high-quality experience for your guests while adhering to all relevant regulations.

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

If you have questions or need assistance regarding short-term rental regulations and zoning in Cardiff, you can contact the following authorities:

Cardiff Council Planning Department
Phone: 029 2087 1135
Email: planning@cardiff.gov.uk

The Planning Department is responsible for handling planning applications, providing guidance on planning permissions, and enforcing zoning regulations. They can assist you with inquiries related to obtaining the necessary planning permission for short-term rentals and ensuring compliance with zoning rules.

Rent Smart Wales
Phone: 03000 115 968
Email: enquiries@rentsmart.gov.wales

Rent Smart Wales is the licensing authority for landlords and agents operating in the private rented sector, including short-term rentals. They can provide information on the licensing requirements, registration process, and training for short-term rental hosts in Cardiff.

Cardiff Housing Options Team
Phone: 029 2057 0750

The Housing Options Team can provide guidance on your rights and responsibilities as a tenant or landlord in the private rented sector, including short-term rentals. They can assist with inquiries related to tenancy agreements, eviction procedures, and other housing-related matters.

Shelter Cymru
Phone: 08450 755005

Shelter Cymru is a housing charity that offers free, independent advice on housing-related issues, including short-term rentals. They can provide guidance on your rights and responsibilities as a tenant or landlord, as well as assist with any disputes or legal matters related to short-term rentals.

Citizens Advice Bureau Cardiff
Phone: 08444 77 20 20
Address: Ground Floor, Quebec House, Castlebridge, 5-19 Cowbridge Road East, Cardiff, CF11 9AB

The Citizens Advice Bureau in Cardiff offers free, impartial advice on a wide range of issues, including housing and short-term rentals. They can provide guidance on your rights and responsibilities, as well as assist with any disputes or legal matters related to short-term rentals.

It is recommended to contact these authorities directly for the most up-to-date information and guidance on short-term rental regulations and zoning in Cardiff.

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

From the discussions on Reddit and Bigger Pockets, it appears that many Airbnb hosts in Cardiff have concerns about the local regulations and the challenges they face in operating short-term rentals.

Reddit Thread: "Cardiff's Renting Crisis: 'I was prepared to live in an Airbnb after being unable to find anywheresuitable.'

This Reddit thread highlights the difficulties faced by tenants in finding suitable rental properties in Cardiff. Users express frustrations about landlords leaving the market, inflated rents, and the lack of available properties. The competitive rental market is attributed to factors like remote work and people moving to Cardiff.

Reddit Comment: "I was fully prepared at one point to have to Airbnb it until I found somewhere permanent."

One user mentions being prepared to use Airbnb as a temporary solution until finding a permanent rental, highlighting the challenges faced by tenants in the current rental market.

Bigger Pockets Thread: "Build ADU or buy an investment property?"

In this thread, a user discusses the option of building an Accessory Dwelling Unit (ADU) in their backyard to rent out, mentioning the potential rental income and the challenges of privacy and space constraints.

Bigger Pockets Thread: "Short Term Rental strategy in San Diego area"

While not specific to Cardiff, this thread discusses the challenges of operating short-term rentals, including the need for permits and the potential impact on long-term housing availability.

Overall, the discussions on Reddit and Bigger Pockets suggest that Airbnb hosts in Cardiff face challenges related to regulations, availability of properties, and the competitive rental market. Some users express frustrations about the difficulties in finding suitable long-term rentals, while others explore options like building ADUs or investing in properties outside of their local area.

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.