Private Sector Leasing in Edinburgh
As with any investment there are downsides to buy to let. Whilst there continues to be a debate over movement in property prices in the short term, the main disadvantage is the ‘void periods’ when the property fails to be leased. This could have a detrimental impact on you as a landlord, as coping without the revenue generated from rent is likely to put pressure on your finances.
Even so, for buy to let properties in Edinburgh, the Private Sector Leasing scheme (PSL) offers a solution to this problem. Established by the City of Edinburgh Council in 2005, the service sees the Council lease properties from private landlords, before subletting them to people in need of housing.
The properties are let under a Scottish Short Secure Tenancy (SSST) agreement, which allow the Council to lease the property for one year, although a landlord does have the option of renewing the contract.
As of September 2010, the scheme has been working in conjunction with theLink Housing Scheme. As the service provider, they are responsible for maintaining the properties on the Council’s behalf. Amongst other things, this includes completing the tenancy paperwork, arranging repairs and collecting rent payments.
Private Sector Leasing – Benefits for Landlords
The PSL scheme presents landlords with a number of benefits that can save them both time and money. The biggest plus point is that not only is rent guaranteed, it is paid quarterly in advance, even during void periods. And with a one year lease with the option of extension, the uncertainty of finding and retaining tenants is also removed from the equation.
Furthermore, with Link’s management service you can ensure your property is being maintained. However, with their commitment to communicating with landlords at regular intervals, you won’t feel out of the loop.
Lastly, at the end of the lease, Link promises to return your property in a fair state and in accordance with the contract although there will be limitations on the type of repair which falls into the category of ‘fair’.
This scheme is only operates in certain areas of Edinburgh. If you are interested in buying a property in and would like to lease it through the PSL scheme why not contact a Neilsons for an initial no obligation consultation