First for property and tenant management in Scotland
Essential Guide
With an increasing number of people now disillusioned with traditional pensions and the recent pension reforms, more people are investing in property or becoming property developers. Here is an overview of how to become a successful property investor.
Like all investments, investing in property comes with its risks, so it is important to research thoroughly, work out your finances and always budget for possible extra costs. Your budget will influence where you can afford to invest and the location can influence the type of property you buy and who you let to.

Define your investment objectives
These will depend on your circumstances. A property that provides a steady income from rental receipts will suit those who are using property to support their income. Others target long term capital growth, as they may have sufficient income but are saving for the future when their circumstances may change. Some combine the two; using rental receipts to pay down the mortgage whilst their income is good, looking for future rental receipts to supplement a pension. Others are looking to leave a family legacy. Consider a “Ready to Rent” investment opportunity if you are time poor.
Arranging Finance
Not everyone is lucky enough to be able to make a cash purchase, and mortgage finance is often required. Mortgage finance can also help you grow your portfolio by using “gearing” to allow your capital to go further. Releasing equity in your home or an existing investment can help fund a new property purchase. Speak to an independent mortgage adviser if you are interested in finding out more about buy-to-let mortgages.
Research and refine your location
Knowing your objectives will help you target the best location to invest in. Areas that offer good yields tend to be those with average house prices but high rental demand, creating a good balance between invested capital and return on the investment. Places with good capital appreciation tend to be locations with a strong economy where there is a high demand for property but limited housing supply.
Research supply and demand
When choosing the type of property to invest in look at what people in the area really want: Do one bedroom flats rent quickly? Do houses linger longer? There is no point spending thousands converting a house to a HMO if there is no demand for the rooms. Ask the advice of letting agents; ask residents and use property portals to monitor how long properties stay on the market. If you provide a type of accommodation that is in high demand and low supply, you may be able to ask for a higher than average rent.
Do your due diligence
Crunch the numbers on any potential investment before you make an offer, factoring in extra costs for mortgage broker fees, legal costs, stamp duty and any renovation work the property will need. If using a buy to let mortgage the deposit you will be required to put down typically will be larger than for a residential mortgage, 25% of the property’s value. A lender will require that expected rental income must exceed your buy to let mortgage repayments by a certain percentage, typically 130% of your monthly mortgage payments.
By this time you should have some idea of what type of property you will buy, so find similar examples on property portals and assess how much monthly rent is reasonable to achieve. If you identify properties you are considering purchasing ask a letting agent for a rental valuation.
Campbell+Dean are always happy to advise on the suitability and likely rental achievable for any property identified by an investor. Contact us for more information.
Pick a property that will rent well; not necessarily one you’d live in
It’s easy to spot a beautiful villa or quaint cottage and think, “it’s perfect”. Remember you are investing capital, not emotion into this property. The property should provide comfortable, affordable accommodation for tenants, not for yourself. Think about the property in terms of how practical it is – is it low maintenance? Does it have good insulation? Is there space for parking? Would you feel safe and secure living there?
Consider renovation to add value
Property investors often buy properties that they can develop themselves, with the goal of creating the ideal property for letting which will have minimal void periods. Not only will an improved property rent better and possibly for a premium, you could significantly increase its value when it is time to sell or re-finance. Common ways of adding value include: adding an en suite, renovating kitchens, creating a loft conversion or rearranging to the floor plan to be more space efficient and incorporate more bedrooms.
Central Scotland offers numerous opportunities for unmodernised development opportunities.
Tenants in situ – Property investors want to maximise their rent and minimise their void periods. A good example of this is buying single units or portfolios with tenants already in situ. The advantages are that you know who your tenant is in advance, as well as how much rent they are paying; when they plan to leave and ultimately the rental yield from day one. See our Investment Opportunities Page for “ready to rent” properties for sale with tenants in situ
Presenting your property
“Stand out from the bland” It is important to maintain a high standard and smart finish to a property. Adding some homely touches or a tasteful feature colour to some rooms will break the “bland of magnolia” and impress tenants; and if you look after the property your tenants are far more likely to treat the property with respect.
Always remember Health and Safety
Before you let your property ensure that you as the landlord and your property comply will all current legislation. This includes registering as a landlord in Scotland with the Local Authority, ensuring your property complies with Gas, Electrical and Fire Safety legislation, a Legionella risk assessment is completed and that a valid Energy Performance Certificate is held. See our Landlord Fact Sheets in our Landlord Resources area for more information.
Managing your investment
Why use a letting agent? Campbell+Dean manage properties for local, national and international landlords:
Peace of mind- Only you know how much time you can spare to deal with your tenant telephone calls and the resulting work. Our comprehensive property management is designed to give you complete peace of mind and relieve you of the commitment of being a full-time landlord, which is why we look after local and national and international landlords.
Tenants prefer managed properties – Increasingly tenants choose managed properties as they require a more professional service, removing the emotion from both sides.
Tenants require accompanied viewings 7 days a week
Evaluate
Take stock of your investment. Based on capital growth or rental yield values, find out how your investment is performing.
Arrange a valuation of your property to find out what your property is worth. Or re-assess your rental income to find out what it could rent for.
Grow your portfolio
Once you have found out how much equity you can release, speak to an independent mortgage advisor to determine the best buy-to-let mortgage options available. Reinvesting this equity in additional properties is the next step.
Growing a property portfolio can be a slow process with long term goals. Property investment is complicated; however time and energy invested in research can enable the investor to achieve better returns with property than other mainstream investments.
Campbell+Dean are here to provide impartial advice and we can also help you select, let and manage the right investment property. Contact us for more information.
Lead a busy life and don’t have the inclination or the time to devote to identifying a suitable investment? “Ready to Rent” investment opportunities are also available from our sister company.
Interested in investment opportunities?
Contact our office for further details
What do investors buy in Central Scotland?
Take a look at our case studies for investment