Top five reasons to become a landlord
Planning to embark on a buy-to-let property journey in 2023? Here are the top five reasons to become a landlord.
It's a long-term investment
A buy-to-let property is a long-term investment, and many landlords remain in the market for at least 10 years. Edinburgh has beautiful properties, a growing student and international population and high demand for rental properties – an ideal mix for buy-to-let investors.
High rental yields
If you’re considering investing in a buy-to-let property, the location is one of the most important factors to consider. The location can often determine the type of tenant you will attract as well as be an indication on how quickly the property may let.
A rental yield is the value of rent you can expect to receive from your property in a year. In Edinburgh, a rental yield between 4-6% is considered high.
We found one-bedroom homes in EH9 performed the best in the fourth quarter of 2022, offering the highest yield and quickest time to let with great access into the city centre through bus, walking or cycling. Properties in EH9 are especially popular with the student population of Edinburgh as they are close to the university campuses.
Two-bedroom properties in EH12, which covers Corstorphine and Murrayfield, are also a great investment, with this postcode being popular with students, young professionals and families looking for a home close to good schools and green spaces – plus it offers excellent local amenities and first-rate transport links.
Use our handy rental yield calculator to work out what yield you could get on your property.
Providing homes in the city
Edinburgh is expected to have one of the fastest-growing economies in the UK in 2023, according to recent data, in partnership with the Centre for Economics and Business Research. Edinburgh is also predicted to be in the top 10 UK cities for job creation with employment levels rising by 1.6%.
With more people working, demand for rental properties remains high, while rental rates stay competitive.
Edinburgh also has a large student population who will primarily live in rented accommodation. The city’s four-bedroom properties, which would be ideal for students, have seen a 73.1% increase in rental rates over the past decade, a strong result for long-term property investors.
Great support for your investment
At ESPC Lettings, we offer a full letting property management service, including finding quality tenants, drawing up legal documents, regular inspections and 24/7 maintenance cover - giving you peace of mind that your rental property will be well looked after.
We will help you build and develop your portfolio with continued buy-to-let advice, reviewing performance regularly to ensure you are getting the best return.
High demand
The Q4 2022 Citylets report found many would-be buyers are postponing property purchases and choosing to rent instead. The demand for homes remains strong with rents staying at the same level or sometimes higher than the previous rent achieved.
Incredible demand saw rental rates pushed up across Edinburgh in October-December 2022, with rental rates growing by 14.9%, taking the average rent to £1,370 per month.
The average time to let for Edinburgh property remained at 12 days during the fourth quarter of 2022.
One-bedroom properties in Edinburgh let the fastest, in 10 days on average. A total of 57% of one-beds let within a week of being advertised, and 94% were let within one month.
Get started with ESPC Lettings
If you’re interested in entering the buy-to-let market or are a landlord looking for advice, a new letting agent or a full property management service, ESPC Lettings can help. As a letting agent based in Edinburgh, we can assist with all stages of renting out a home, from finding the right property to sourcing tenants to property maintenance.
Get in touch with the team today on landlord@espc.com or 0131 253 2847.