Inspired to become a landlord?

With another sell out Thinking of Becoming a Landlord event next week we thought it would be appropriate to take a look at why people are becoming landlords and what they see as their biggest challenge.

We recently surveyed a number of people who had registered for our recent Lettings events on the website and the results give an interesting insight into becoming a landlord. It was clear that amongst our respondents asset investment and boosting pension provision were key reasons for entering the buy-to-let market and given the relatively low return currently being made in traditional stocks and shares this is perhaps unsurprising. There is something so tangible about investing in property that people enjoy, and whilst fortunes may not be made through capital appreciation in property at present an investment that pays for itself in terms of rental income certainly can be appealing.

A secondary occupation

For the majority, being a landlord was a secondary occupation. This is really interesting considering the majority of those who already had a rental property currently manage it themselves. Nearly 40% did however use a letting agent to manage their property and the majority of those who had not yet entered the market but were just considering their first purchase, were planning to use the services of a letting agent (some 60%). Considering that vetting and referencing of tenants, rent collection, dispute resolution and handling of administration were all rated as important benefits of using an agent it is clear that those who are private landlords are undertaking a lot of work to make their investment work.

Long term investment

The vast majority of respondents view a buy-to-let property as a long term investment, with many planning on remaining in the market for over 10 years. Given our comments earlier about low potential for capital appreciation in the near future this is a very healthy and realistic view.

Many of the respondents were planning on making their purchase within the next 6 months, so watch out for those To Rent boards springing up across the City!

Inspired to become a landlord?

Are you thinking of becoming a landlord? Or perhaps you already are one and are considering your options? As the No.1 for property in Edinburgh, the Lothians and Fife with over 40 years’ experience in the Scottish property market we offer an excellent service and an established reputation. We can offer you a fully managed service, with excellent exposure and competitive market rates. Letting with ESPC is easy.