Long-term let or holiday let? What Scotland’s new rental rules mean for your Oban property.
If you let your Oban property to a long-term tenant, now could be a good time to reconsider your options.
A series of new Scottish rules is changing what it means to be a landlord, with some already in force and more on the way. Most of these changes point in the same direction: less control for you and more responsibility.
So, it’s fair to ask whether your property might work better as a holiday let.
For plenty of Oban homes, the answer is yes. But it’s important to understand both sides before making a decision. Here’s what has changed, how holiday letting compares and what it takes to make the switch work.
What has changed under Scotland’s new rental rules?
Long-term letting has become more restrictive
The Housing (Scotland) Act 2025 represents one of the biggest changes to private renting in Scotland for years. Some measures are already in force, while others are still being introduced. Together, they shift the balance between landlords and tenants in several important ways.
Asking for a higher rent will soon carry real risk
From 1st April 2027, tenants will have 30 days to challenge a proposed rent increase. If the case goes to a Rent Officer or Tribunal, the rent they set cannot be higher than the amount you requested, but it could be lower.
In other words, asking for more could leave you receiving less.
Rent control areas are also being developed. These could limit how much rents are allowed to rise each year, potentially from 2028.
Getting your property back is harder than it used to be
From 6th October 2026, if a tenant dies, a family member only needs to have lived in the property for six months, rather than 12, to take over the tenancy.
If you have considered selling the property, moving back in or passing it on to family, your route back to it is now less certain.
There is more to manage day to day
New regulations set fixed timescales for investigating and repairing damp and mould, backed by enforcement powers.
Tenants also gain greater rights to decorate and personalise a property after six months. They will also have the right to request a pet in writing, which a landlord cannot unreasonably refuse, although this measure is expected to come into force later.
Mistakes can now lead to penalties
Since 1st May 2026, refusing a tenant because they have children or receive benefits has been a criminal offence, with fines attached.
None of these changes is unreasonable on its own. Together, however, they mean less control over your rent, a more difficult route back to your property, more to manage and real consequences if something gets missed.
That can be a lot to carry when you own one or two properties alongside an already busy life.
A holiday let can put you back in control
Holiday lets operate on a completely different basis. There is no long-term tenancy in place, so most of the rules above simply do not apply.
Your property is available when you want it
With no tenancy to end, you decide when your property is available and when it is not.
Many owners reserve a week during the summer for their own family. Others simply value knowing they could sell the property or move into it later without notice periods or tribunals standing in the way.
Your pricing follows demand
Instead of one fixed monthly rent reviewed once a year, a holiday let’s nightly rate can move with Oban’s calendar.
Rates can be higher around the Argyllshire Gathering, school holidays and the busy ferry months for Mull and the islands, then adjusted during quieter periods.
The energy rules are more forgiving
A holiday let still needs a valid EPC before it can be marketed and let.
Under current proposals, it avoids introducing a minimum Band C requirement for private rentals. For many of Oban’s older properties, including the stone-built cottages and Victorian villas guests love, this could avoid a costly round of upgrades.
The rates position can work in your favour
Once your property qualifies as a self-catering holiday let, it moves from council tax to non-domestic rates.
Most qualifying properties receive 100% relief through the Small Business Bonus Scheme. This will often make the rates bill cheaper than the council tax it replaces, although separate water and waste charges will still apply.
What should you know before switching from a long-term let to a holiday let?
To qualify as self-catering accommodation, your property must be available to let for at least 140 days of the year and actually let for at least 70. If you fall short, the property could move back onto council tax, where second homes may face a higher charge.
This is where the way your property is managed really matters. The properties we manage comfortably exceed these thresholds as a matter of course, so our owners don't need to worry about it.
Also, as with anything involving tax and rates, your individual circumstances matter. It is always worth checking the details with your accountant or Argyll & Bute Council.
A holiday let comes with its own responsibilities
Switching to a holiday let does not mean swapping your responsibilities for none at all. Holiday letting comes with its own requirements, and it is important to understand them from the beginning.
Every holiday let needs a short-term let licence
All holiday lets in Scotland require a licence from their local council, which in Oban is Argyll & Bute Council.
This means meeting fire, gas and electrical safety standards, holding the correct insurance and keeping everything up to date for as long as the property is being let.
Some properties may need planning permission
Depending on the type of property and its location, changing a home into a holiday let may count as a change of use.
Flats with shared stairs are one of the most common examples, so it is worth checking the planning position early.
Income changes with the seasons
With a long-term let, the same rent usually arrives each month. Holiday-let income is typically higher during the summer and quieter in the winter.
That means successful properties need responsive pricing and a genuine plan for attracting bookings during the off-season.
The tax position has changed
The special tax treatment for furnished holiday lets ended in April 2025, bringing their tax treatment much closer to that of long-term lets.
Your accountant can explain exactly what this means for your property and circumstances.
Every guest needs looking after
Instead of one tenant, you may have new guests arriving every few days. Each one expects a spotless property, quick replies and someone available if anything goes wrong.
Holiday letting can be incredibly rewarding when it’s done well.
But we also won’t pretend that it isn’t a lot of work when you’re managing everything yourself.
The benefits only add up when your property is managed well, and what makes a holiday let attractive depends on running it properly.
That’s where we come in.
We manage everything your property needs, including:
Listings across Airbnb, Booking.com, Vrbo and our direct-booking website
Pricing that responds to local demand
Guest communication at all hours
Housekeeping and maintenance
Clear monthly statements that bring everything together
Support with licensing and ongoing compliance
We have been managing holiday lets in Oban for more than 9 years. Our properties achieve 25% higher occupancy than the local market, with an average guest rating of 4.8 stars.
We have handled more than 4,000 bookings, across over 30,000 guests, and our average response time to guests is just 14 minutes. We are also an Airbnb Superhost, a Booking.com Preferred Partner and members of the ASSC and AITC.
For you, that means no tenant phone calls, no chasing repairs and no wondering whether you have kept up with the latest rule change. Just a well-run property, stronger returns and the freedom to use it when you want, while you get on with everything else in your life.
If you are wondering whether your Oban property could work better as a holiday let, we are always happy to talk it through.
We will give you a clear picture of what the property could earn, what the licensing and setup process involves and what the costs would be. There is no pressure and no fee to find out.
And if long-term letting is still the right choice for you, we will tell you that too.
Thinking about making the switch? Reach out to us today.
