The COVID-era has created a lot of upheaval in the housing market in Scotland. Many property owners are considering becoming a landlord in 2021.
This could be because their personal circumstances have changed or they previously rented their property as a holiday let. Aside from the obvious benefit to the private rented sector that needs more housing, renting a property on the long-term market is a great option for property owners.
What’s happening with holiday letting?
The Scottish Government has approved legislation to control the holiday letting sector via licensing. Whilst introducing regulation in the sector will make it safer for guests and visitors, the costs and admin involved for property owners will increase significantly. COVID has decimated the holiday letting sector over the past 12 months due to extremely low numbers of visitors and sparse occupancy levels.
By comparison, long-term letting is more stable, lower risk and in the long run, financially more attractive than holiday letting for property owners. This is because, for long-term lets many of the running costs of the property such as wifi, gas, electricity, council tax and cleaning are paid for by the tenant who makes the property their home. The property owner, or landlord, is then only responsible for relevant maintenance, repairs and annual safety certificates which usually amounts to about 10% of annual rental income. This gives the long-term landlord a predictable monthly income from their rental property and provides certainty when covering costs like mortgage payments.
How has long-term letting been affected by COVID?
Long-term letting has been relatively unaffected and most tenancies continue to run as expected. As an industry, we have been able to change the ways we work by incorporating video viewings and remote onboarding of new customers. As our recent market update indicates, void periods have increased as the number of properties on the market has grown, but the demand for rental properties has not been significantly affected and 2021 is set to be another big year in the private rented sector in Scotland.
How do I become a landlord?
It’s extremely easy. We’ll take care of almost everything for you.
1. Get an idea of what your property will rent for instantly on our website.
2. Talk to us about what’s involved and we can help you understand all the costs including things like smoke alarms and safety certificates. You’ll then know the process and what the set up costs will be, when to expect your first rental income and we can discuss what your plans might be for the property in the future.
3. You’ll have all the information and advice you need to make a decision if you want to become a landlord.
It’s much easier than you think!