Classifying Landlords: Which Type of Landlord Are You?

If we were to ask you which type of landlord you are, what would you say? 

Well, assuming you communicate well with your tenants, keep-up-to date with your landlord safety certifications and fix any problems as soon as they occur, you’re probably thinking you’re a pretty damn good ‘un. 

But that’s not what we’re getting at here.

There are actually a staggering 253,544 landlords on the Scottish Government’s landlord register (and probably some that aren’t on there, too). 

As you would expect, these landlords all have different reasons for being a landlord, and also different objectives of what they want from their properties. 

As the only estate agent in Scotland specialising in open market tenanted property sales, we handle a high volume of enquiries from landlords across Scotland. 

These enquiries have allowed us to carry out customer discovery and delve into the various different types of landlords within Scotland’s private rented sector. 

So, let’s take a closer look at the different types of landlords, below, to see which category you fall into. 

Which type of landlord are you? 

As we were saying, with 325,649 households within Scotland in the private rented sector, we found we were able to categorise the different types of landlords in Scotland. 

Our own research mirrors that conducted by York University and the Nationwide Foundation who created the following landlord categories: 

“Episodic” landlords (owning 1-2 properties) 

Usually you’ll find these properties weren’t bought with the intention to be in the private rented sector. 

These landlords are most likely to be renting their properties to friends/family and have no long-term intention to stay in the private rental sector. 

This category also includes ‘reluctant landlords’; those who would like to sell, but can’t. Therefore, these landlords are likely to be looking to sell over the short or medium term. 

Pension-plan landlords (owning 1-4 properties)

You’ll find that these properties are regarded as an investment/pension, and the landlords have no intention of selling in the medium or long-term. 

Landlords within this category usually haven’t had any recent property transactions. 

Portfolio-building landlords (owning 5+ properties) 

Portfolio-buying landlords are more active across a range of transactions, including buying and selling. Their portfolios are expected to include HMO properties and letting likely be a full-time occupation. 

These landlords are likely to be using a range of finance options, including BTL remortgages and commercial loans.

Divesting landlords (owning 5+ properties) 

What we call divesting landlords are likely to be managing their property portfolios on a full-time basis. 

They are likely to be an older individual/couple who have unmortgaged properties. Landlords within this category are expected to reduce their portfolio size in the near future. 

Single property landlords

Did you know that 74% of landlords in Scotland only have a single property?

If you fall into this category, it’s very likely you don’t have any long-term intention to keep your property in the private rented sector. However, you do have an asset which would be very attractive to the landlords within the other categories. 

Advice from the property pros

Thinking of selling your tenanted property? If so, we’d recommend getting in touch with a tenanted property sales specialist who is experienced in dealing with selling properties with sitting tenants.  

This option is very low-risk, as it allows you to continue to receive rental income right up until the completion of sale.

TIP: Check out our blog to find out how you can sell your rental property with the tenant still living there.

Any good tenanted property specialist should be happy to help you explore all your options – no strings attached.

Alternatively, if you’re a landlord keen to expand your portfolio, this is also something a good tenanted property sales specialist should be able to help with. 

In summary…

Whatever type of landlord you are, we hope you’ve enjoyed reading up on some of these stats. 

One of the 74% of landlords who just own one tenanted property? If you’re thinking of selling, why not get in touch with us? 

As Scotland’s only landlord’s estate agent, we’ll be happy to give you some free, no-strings advice.

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Written by Ross MacDonald, Director of Sales & Co-founder of Portolio

Get in touch on 07388 361 564 or email to [email protected]