Tourist haven Perth and Kinross looks set to have one of the dearest short-term let licensing schemes in Scotland.
The Association of Scotland's Self-Caterers' chief executive told councillors the restrictions would have a knock-on effect on a sector she said generates £54 million for the Tayside economy.
Perth and Kinross Council's policy was approved at a special meeting of PKC's Licensing Committee on Thursday, September 22.
The new scheme is being rolled out across Scotland's local authorities on October 1 in line with legislation approved by the Scottish Parliament in January 2022.
But eyebrows were raised over the fees agreed by PKC. Only neighbouring Dundee City Council has proposed charging more.
Shetland's highest fee is £208. PKC has approved a scale of charges up to £1600 for properties accommodating more than 11 guests. Neighbouring Dundee proposed to charge £3,100 for properties accommodating more than 12 guests.
Addressing the committee Conservative Carse of Gowrie councillor Angus Forbes said: "The Scottish Government recommends between £218 and £436 per three years. Clearly we - and most other councils - are far from that figure."
Perth and Kinross short-term licences will require renewal every three years. North Ayrshire has proposed a 10-year renewal of licences.
The Association of Scotland's Self-Caterers' chief executive Fiona Campbell addressed PKC's Licensing Committee with her concerns.
She said: "When we start constricting this sector - which is already happening on the back of this legislation - we are going to have an onward impact into the entire community."
A self-caterer for 20 years she said: "I'm not a cowboy. We are professional, legitimate people."
She thanked PKC officers for listening throughout the consultation which she said "had actually been very rare across Scotland".
The number of short-term lets in any one area appears to be unknown.
Fiona - who has been addressing councils all over Scotland - said: "No local authority knows how many short-term lets there are in the area."
She said: "I can tell you how many self-catering units there are in Scotland - 18,000. I can tell you roughly how many let their properties out on AirBnB or the likes.
"We have no idea how many B&Bs there are, how many unlicensed guesthouses or glamping pods there are. Therefore it's impossible for any local authority to set a fee based on a cost recovery basis because we simply don't have the data."
Fiona said she called for a registration system but lamented: "That ship has sailed."
She then highlighted a concern over planning considerations claiming it could lead to lawsuits. PKC has published a checklist for applicants to identify if they require planning permission to have a short-term let.
The self-caterer told the committee: "There are real concerns it is open to judicial review.
"I've got opinion here from Brodies LLP that's saying the planning considerations as part of the licensing could be challenged."
Fiona added: "At this point, Perth and Kinross is the only local authority that has taken this approach outwith a planning control area and that's a concern."
Later quizzed on this by SNP councillor Eric Drysdale, PKC's legal manager Sarah Rodger said: "Without having access to that it's difficult for me to comment on what a firm of solicitors may have advised.
"Planning are always and have always been a consultee in relation to licence applications under the Civic Government (Scotland) Act and this process will be no different.
"Our perspective is that Planning will be looking at and dealing with short-term lets separately from a planning perspective. What our draft policy seeks to do is to give information about what our planning policy is."
She added: "I'm confident that our policy - as it's written - complies with the legal framework that we have in place in terms of the licensing legislation."
Summing up, Fiona said: "We are in the midst of a cost of living crisis where £1600 - or £400 - that we've never had to spend before is too much. We would not be able to do it. I can tell you that because I'm living through it.
"And the additional mandatory conditions such as EICRs [Electrical Installation Condition Report] and PAT [Portable appliance testing] are costing us a lot of money at a point where we are not getting bookings because people are not booking at the moment.
"We're all paying a lot more for energy and people are looking at closing over winter. This is people's livelihoods."
Fiona told councillors withdrawing licences was "not going to solve the housing crisis but "increase second homes and increase campervans on our roads".
She said: "If a self-caterer or B&B withdraws from the market - which they are doing in droves and I've got the evidence for that - they are putting their properties on the open market, they are being snapped up from people from the south who are going to leave them lying empty as second homes."
Perth and Kinross Council is expecting 2/2500 applications for licences. It received 90 responses to its recent consultation on its policy - including one for a premises in Angus.
The new scheme will come into force on October 1, 2022.
Legal manager Sarah Rodger pledged to keep PKC's policy "under constant review".
Convener Bailie Mike Williamson moved for approval. This was seconded by fellow SNP councillor Ken Harvey and - following a brief recess - unanimously agreed.
