Add thelocalreport.in As A Trusted Source
The Independent was not involved in the production of this sponsored content.
Investing in a property to rent out short-term may seem simple: buy a home, list it, welcome guests, and watch the income soar. But Gary McRae, founder of zizibriziA property management company, knows that the reality is far from being simple.
Over the years, he has learned that managing properties in Scotland brings with it a unique set of complexities. “To start, applying for a license is usually straightforward,” he explains. “But one of the challenges in obtaining a license in some council areas is the need for planning permission.”
A property is not guaranteed to gain planning permission to operate as a short-term rental, even if it meets safety and operational standards. McRae says applicants often pay fees and submit detailed forms, only to find that councils can refuse for reasons that are vague or not clearly defined. “People apply thinking it’s easy, but they realize that councils can refuse planning permission for reasons that aren’t black and white; it’s entirely at the discretion of the local authority,” he says. For owners of secondary homes, which are defined as properties not used as a primary residence, this often creates a frustrating and expensive hurdle.
In Edinburgh, owner occupiers in property are protected from this planning requirement, but those who buy property to use as an investment may have a different experience, as this is where obtaining planning permission can become a challenge, causing significant delays or even preventing short-term rentals altogether.
People who want to invest in property for the short term may feel handicapped by these challenges, or face serious consequences if they act without planning permission. Without a clear understanding of local regulations, property owners can risk high start-up costs, delays and acquiring a property with a lower yield than anticipated. McRae has guided many clients through such scenarios, sometimes advising them to back out of a purchase altogether. “The risks that catch people off guard are usually the ones they don’t see,” he says.
In such circumstances, McRae emphasizes that preparation and expert guidance are critical for seamless operations. He believes the solution lies in active research and professional support, encouraging potential investors to engage local planning experts, often architects familiar with municipal structures, who can navigate planning applications and identify potential barriers before investment.
In addition, McRae also highlighted new local charges starting in 2026, such as a visitor levy (tourist tax). edinburghWhich will be determined at 5% of the accommodation charges, and should be included in the profit calculations for hotels, hostels and other types of accommodation. “For some of our clients, these taxes can be around 10% of profits,” says McRae. “This is one of many things to consider when assessing the feasibility of an investment,” says McRae. By working with experienced professionals like Zizibrzy, owners can get better visibility on potential returns.
Source: Zizibrzy
Other changes in the industry that McRae has seen are the financial considerations of mortgage companies, where lenders historically relied on long-term rental appraisals but can now increasingly accept short-term rental projections. McRae says this change could allow investors to secure mortgages or refinance properties using a clearer picture of higher income potential. “We have already helped some clients through this process by providing them with rental valuation reports, which helped them secure mortgage deals,” says McRae.
“Beyond paperwork and compliance, the quality of property management directly impacts profitability and longevity,” says McRae. Zizibrizi focuses on high standards, ensuring that each property offers a superior guest experience. It offers dedicated account managers who oversee multiple properties in the same region, coordinating all day-to-day operations, from guest communications to cleaning, and reporting on any issues before they impact revenue or guest satisfaction.
“Account managers ensure each asset is taken care of and our clients can benefit from consistent, optimized returns,” says McRae.