Switching from short-term lets to long-term letting in Edinburgh – what landlords need to know in 2026
For many Edinburgh property owners, short-term letting used to feel like the obvious choice.
The city had year-round tourism, major festivals, strong weekend demand and a steady flow of visitors looking for somewhere central to stay.
If you owned a well-located flat, especially near the Old Town, New Town, Leith or the city centre, short-term letting could look very attractive.
But the market has changed.
Short-term lets in Scotland now operate in a much more regulated environment. Edinburgh has a city-wide short-term let control area, licensing is mandatory across Scotland and, new for 2026, the Edinburgh Visitor Levy is now applied to paid overnight accommodation, including holiday and short-term lets.
At the same time, long-term rental demand in Edinburgh remains strong, particularly for well-presented properties in good locations.
So, if you are wondering whether to switch from short-term lets to long-term letting, you are not alone.
For some landlords, long-term letting offers a more stable, less hands-on and more predictable way to make their Edinburgh property work. It is not the right route for everyone, but it is a conversation worth having.
Why more Edinburgh owners are reviewing short-term lets
Short-term letting has not disappeared from Edinburgh and for some properties it will still make sense.
But it is no longer the simple, flexible option it once was. Owners now need to think about licensing, planning, safety standards, visitor levy administration, guest turnover, cleaning, marketing, reviews, booking platforms and changing demand.
That is a lot to manage.
For owners who live outside Edinburgh, have inherited a property, no longer use a second home regularly, or simply want less day-to-day involvement, the appeal of short-term letting can start to fade.
Long-term letting offers a different kind of value. It gives you regular monthly rental income, fewer changeovers, less operational pressure and a tenant who treats the property as their home rather than somewhere they are staying for a weekend.
And in a city where good rental homes remain in demand, switching to long-term letting can be both commercially sensible and socially useful.
Short-term let licensing is now part of the landscape
Short-term let licensing is no longer a future possibility. It is here.
The short-term let licensing scheme is mandatory for all short-term let accommodation across Scotland, including holiday cottages, B&Bs, guest houses, rooms within homes and unconventional accommodation. A licence is required regardless of whether the accommodation is let for one night or several months.
You must get a licence before taking bookings or receiving guests and operating without one is a criminal offence with potential fines of up to £2,500.
For short-term let operators, this means compliance is no longer optional or informal. You need the right permissions, the right paperwork and the right processes.
If the administrative side of short-term letting has started to feel more like running a small hospitality business than owning a property investment, that is because, in many ways, it is.
Edinburgh’s short-term let control area makes planning important
Edinburgh has an additional layer of regulation because the whole City of Edinburgh Council area is designated as a short-term let control area. The designation came into effect on the 5th of September 2022.
Using a dwelling that is not your principal home as a short-term let can be classed as a material change of use requiring planning permission. You may need planning permission to operate a short-term let in an entire property that is not your main home.
For owners of second homes or investment properties, this can be a major factor.
A property may be attractive to visitors, but that does not automatically mean it is straightforward to operate as a short-term let. Planning, licensing and building suitability all need to be considered.
Long-term letting is not regulation-free – far from it – but the process is often clearer and more predictable when handled by an experienced letting agent.
You can read Clan Gordon’s guide to short-term let licensing rules in Edinburgh here.
The Edinburgh Visitor Levy adds another consideration from July 2026
From the 24th of July 2026, the Edinburgh Visitor Levy applies to paid overnight accommodation in the city.
The levy is a five per cent payment on the cost of paid overnight accommodation, charged before VAT and only on the first five nights of a stay. It applies to accommodation including hotels, self-catering apartments, aparthotels, guest houses, hostels, holiday and short-term lets, including residential properties licensed for home sharing, home letting and secondary homes.
For short-term let operators, this introduces another administrative requirement and another factor guests may consider when comparing accommodation costs.
It does not mean short-term letting will stop being viable. But it does mean owners should review whether the income still justifies the work, risk and administration involved.
For some, the answer will still be yes. For others, long-term letting may start to look like the calmer, more consistent option.
What about second home council tax?
Second home council tax has been another major talking point for Edinburgh property owners.
The City of Edinburgh Council originally agreed to raise the council tax premium for second homes to 300% from April 1 2026, which would have meant affected owners paying four times the standard council tax charge.
However, the council has since confirmed this increase has been suspended and revised bills for 2026/27 have been sent out based on a 100% premium, the same rate as last year.
This is a good example of why owners need up-to-date advice.
The direction of travel is clear: Edinburgh wants more homes brought back into active use as part of the response to the city’s housing emergency. But the exact rules and charges can change and owners should check the latest council position before making decisions.
If you own a second home and are unsure whether to sell, keep it empty, continue short-term letting or move to long-term letting, it is worth reviewing the full picture rather than reacting to one headline.
Clan Gordon has also covered this issue in our blog on Edinburgh’s second home council tax rise, although owners should always check the latest Council update before acting.
Long-term rental demand in Edinburgh remains strong
The Edinburgh rental market has become more balanced than it was during the most intense periods of demand but good long-term rental properties are still needed.
Citylets’ Q1 2026 Edinburgh report recorded an average rent of £1,506 across all property sizes, with 55% of properties let within a month and an average time to let of 33 days. One-bedroom properties averaged £1,057 per month and 63% let within a month, while two-bedroom properties averaged £1,411 and 52% let within a month.
That tells us two important things.
First, Edinburgh remains a strong long-term rental market.
Second, landlords still need to be realistic. Properties must be priced properly, presented well and marketed professionally. The days of assuming any property will let instantly at any price are behind us. Tenants have become more selective, and value matters.
That is where a good letting agent makes a real difference.
At Clan Gordon, we help landlords understand what their property can realistically achieve, how to present it well and how to attract suitable long-term tenants. You can learn more about our approach on our Edinburgh landlords page and our property letting services for landlords.
The benefits of switching to long-term letting
Long-term letting has real advantages.
The biggest benefit is consistency. Instead of managing frequent guest turnover, cleaning schedules and fluctuating bookings, you receive regular monthly rent from tenants who are making the property their home.
Long-term letting also reduces operational workload. You do not need to manage guest check-ins, reviews, linen changes, pricing adjustments or gaps between bookings. With a full property management service, your letting agent handles tenant communication, repairs, compliance, inspections, rent collection and tenancy administration.
It can also protect the property itself. While no tenancy is completely risk-free, long-term tenants often have a different relationship with the home. They settle in, look after the space and report issues because they are living there every day.
For owners who want their property to keep working without becoming a second job, that is a significant advantage.
What needs to happen before switching to long-term letting?
Switching from short-term to long-term letting is not as simple as taking down the holiday listing and finding a tenant the next day.
The property needs to meet Scotland’s private rented sector requirements before it can be marketed and let.
Before renting out a property in Scotland, landlords must register unless an exemption applies, and registration must be renewed every three years. It is a criminal offence to rent out a property without being registered.
Property adverts must also include either a landlord registration number or “landlord registration pending”, along with the EPC rating.
The property must also meet the repairing standard and tolerable standard. Landlords are legally responsible for the property meeting these standards, even when using a letting agent. These standards cover the property itself and communal areas such as stairwells and closes.
You will usually need to review:
- Landlord registration
- Energy Performance Certificate
- Gas safety, if applicable
- Electrical safety
- Portable appliance testing, where appliances are supplied
- Smoke, heat and carbon monoxide alarms
- Legionella risk assessment
- Repairing Standard compliance
- Furniture and furnishings
- Insurance
- Mortgage consent, if relevant
- Tax position
- Tenant deposit protection
- Private Residential Tenancy paperwork
If that list seems daunting, that’s exactly why professional management exists.
Clan Gordon’s complete guide to letting in Edinburgh explains more about what is involved, including EPCs, safety certificates and practical set-up steps.
Short-term let furniture may not be right for long-term tenants
One of the most common mistakes owners make when switching from short-term to long-term letting is assuming the property is already tenant-ready.
Sometimes it is. Often, it needs a rethink.
Short-term let furniture is usually chosen for style, photography and short stays. Long-term rental furniture needs to be durable, practical and suitable for everyday living.
Tenants may need more storage, better workspace, reliable appliances, comfortable seating and enough room to make the property feel like home. A flat designed around weekend guests may feel cluttered or impractical for someone planning to live there for a year or more.
Presentation still matters, but the goal is different. You are not trying to create a boutique stay. You are trying to create a home that attracts reliable tenants, supports a smooth tenancy and reduces maintenance issues.
If the property needs work, Clan Gordon can advise on what matters most before marketing. We can also help with repairs, furnishing and preparation, as outlined in our first-time landlord costs guide and our blog on staying on top of property maintenance.
Long-term letting still needs strong marketing
Switching to long-term letting does not mean settling for average marketing.
In fact, good marketing matters more than ever.
Tenants often make decisions quickly based on photographs, floor plans, condition, location and whether the listing feels trustworthy. A well-presented property with strong photography can attract more enquiries and reduce time on the market.
This is particularly important for former short-term let properties. Many are in desirable central locations and already furnished to a good standard. With the right positioning, they can appeal strongly to professionals, relocators, couples, students, overseas tenants or families, depending on the property type.
Clan Gordon advertises properties widely and invests in high-quality marketing, including professional photography and virtual tours where appropriate. You can read more about this in our blog on how better property photography helps your home let faster.
What type of tenancy will you use?
In Scotland, most new private tenancies are Private Residential Tenancies.
Landlords must give a new tenant a private residential tenancy agreement when the property is the tenant’s main or only home and the landlord does not live with them. There is no fixed length for a Private Residential Tenancy; it continues indefinitely until the tenant or landlord ends it.
This is different from short-term letting, where guests stay for a defined booking period.
For landlords switching from short-term lets, this is an important mindset shift. You are moving from hospitality-style bookings to a residential tenancy with different rights, responsibilities and processes.
That is not a bad thing. It simply means you need to understand the rules and get the paperwork right from the beginning.
Clan Gordon uses tenancy agreements adapted from the Scottish Government model agreement and handles the administration for our managed landlords. Our landlord property management page explains how we support landlords through the full process.
What about future rent controls and tenant rights?
The private rented sector in Scotland is still evolving. The Housing (Scotland) Act 2025 allows for long-term, evidence-based rent controls to be introduced in areas where rents are rising steeply.
Local authorities must assess rent conditions in their area and submit reports to Scottish Ministers at least once every five years, with first reports due no later than the 31st of May 2027.
The Act also introduces new tenant rights around pets and personalising rented homes, although some of these changes do not yet have commencement dates and still require further secondary legislation. For example, tenants will have the right to make written requests to keep pets, which landlords cannot unreasonably refuse once the relevant provisions come into force.
Owners moving from short-term lets need to understand the rules are different, the relationship with the occupier is different and professional management can reduce risk.
Is long-term letting right for your Edinburgh property?
Long-term letting may be worth considering if:
- You no longer want to manage frequent guest turnover.
- You are finding short-term let licensing or planning difficult.
- You want more predictable monthly income.
- You live outside Edinburgh or overseas.
- You own a second home that is used only occasionally.
- You have inherited a property and are unsure what to do with it.
- You want to retain the property but reduce day-to-day hassle.
- You are reviewing whether short-term letting still works financially.
It may not be the right fit if you need regular personal use of the property, want complete flexibility, or rely heavily on peak-season short-term income.
That is why the best first step is to review the property properly.
Look at likely long-term rent, compliance costs, preparation work, ongoing management, tax, mortgage position and your wider plans.
If you live outside the UK or may become a non-resident landlord, our guide to letting your Edinburgh property from overseas may also be useful.
How Clan Gordon can help you switch
At Clan Gordon, we help Edinburgh landlords make the switch from short-term letting to long-term property management with as little stress as possible.
We can assess your property, advise on likely rent, identify any compliance work, arrange safety checks, prepare the property for marketing, find suitable tenants, manage the tenancy agreement, protect the deposit and handle ongoing repairs and communication.
In other words, we take the job off your plate.
Our team understands Edinburgh property, from traditional tenement flats to modern apartments, HMOs and family homes. We also understand many owners switching from short-term lets are not full-time landlords. You may never have dealt with Private Residential Tenancies, repairing standards, landlord registration or tenant deposit schemes before.
That is completely fine. You do not need to become an expert in Scottish letting legislation. You just need the right team behind you.
Thinking about switching to long-term letting?
If your Edinburgh short-term let is becoming harder to manage, less predictable or more complicated than it used to be, long-term letting could be a strong alternative.
It offers regular income, professional management, reduced operational pressure and the chance to provide a much-needed home in Edinburgh’s private rented sector.
The key is making the switch properly.
Book a call with Clan Gordon today and we will help you understand what your property could achieve as a long-term rental, what work may be needed and how to make the transition smoothly.
FAQs on switching from short-term lets to long-term letting in Edinburgh
Is it worth switching from short-term lets to long-term letting in Edinburgh?
For some owners, yes. Long-term letting can offer more predictable monthly income, fewer operational demands and less exposure to guest turnover, licensing issues and short-term market fluctuations. It depends on the property, location, likely rent, compliance position and how often you need to use the property yourself.
Do I need a short-term let licence in Edinburgh?
Yes, if you operate a short-term let. The Scottish Government says the short-term let licensing scheme is mandatory across Scotland and a licence is required regardless of whether you let the accommodation for one night or several months.
Do I need planning permission for a short-term let in Edinburgh?
You may need planning permission if you are using an entire property that is not your main home as a short-term let. Edinburgh is a city-wide short-term let control area, and the Council says this type of use can be a material change of use requiring planning permission.
What do I need before renting my property long-term in Scotland?
You will usually need landlord registration, a valid EPC, safety checks, compliant alarms, a tenancy agreement, deposit protection, insurance, and a property that meets the Repairing Standard. Requirements vary depending on the property, so it is best to get professional advice before marketing.
How much rent could I get for a long-term let in Edinburgh?
It depends on property type, location, condition, presentation and tenant demand. Citylets’ Q1 2026 Edinburgh report recorded an average rent of £1,506 across all property sizes, but individual properties can vary significantly.
Can Clan Gordon help me convert a short-term let into a long-term rental?
Yes. Clan Gordon can review your property, advise on likely rent, identify compliance work, prepare the property for marketing, find suitable tenants and manage the tenancy on your behalf.
