Anyone a landlord in Scotland?

[Costacoffeeplease]

Pros and cons of a rental (no mortgage)?

I am. Can't say there's any more pro's compared to the rest of the UK.

However, there's much more legislation/regulation here (compulsory LL registration, no tenant charges etc). I think this will only increase - there has been talk of rent caps in certain areas, for example.

Most recently the new tenancy changes (started 1st Dec) mean the end of no-fault evictions & have strengthened tenant rights further.

And of course the HMRC taxation changes, which are being phased in over the forthcoming years. A bigger issue if you're a higher rate tax payer - and of course we pay more income tax in Scotland too....and don't forget CGT when you sell.

If you're mortgage free, I think there's still money to be made in in-demand areas (Edinburgh, West End/Southside of Glasgow etc).

But my personal view is that the BTL bubble has burst (not just in Scotland) and there will be further increases in legislation/costs for LL which will make it financially non-viable. So I think there will be more LL getting out the business in the near future.

And quite where all the renters are going to go when this happens is another issue…

Thanks that’s very interesting

We don’t live in the uk and have no other income there, so higher rate tax isn’t an issue. The property is at the lower end of the scale, and one that I know, it is already tenanted and has been for the last few years. I doubt a rent cap would affect it either. We’re looking at a long term situation, so wouldn’t be looking to evict tenants for no good reason - so is there anything else that means we shouldn’t go ahead (where I live we have lots of regulation regarding rentals so am well used to that!)

Not in Scotland - but the reason troublemakers get evicted with a section 21 is because it can't be played. Landlords don't evict for no reason, although stupid politicians can't work it out.

If the system for evicting non payers/wreckers/dealers ( you usually get all three) had been strengthened that would have been fine. But it hasn't. I think single property btl in Scotland is madness now.

OP, I'd be trying to find out how much the property rents out for & the current costs associating with renting it out (agency fees, LL registration, EPC, repairs, LL insurance, safety checks, etc) - perhaps run through these figures with an IFA & see if they stack up.

By the time you include all these, plus void periods, perhaps you will break even, or there will be less riskier options for your returns.

I know those figures, as I said I know the property and that it currently has a tenant who has been there for a number of years, and is not intending to leave AFAIK

It’s a relatively small amount of money to invest, and without a mortgage, void periods wouldn’t be a disaster - although it is close to several major employers, so I would expect a certain level of demand

I’m not sure what would be a better investment? As I’m not a uk resident, things like peer to peer funding are not open to me