The typical yield for landlords in Scotland has increased to 4.7% as of March 2017 – a six month high, Your Move’s Scotland Rental Tracker has found.
This is higher than yields in England and Wales, which both average at 4.3%.
Rents rise by 1.8% in Scotland in the last year to £580.
Brian Moran, lettings director, Your Move Scotland, said: “Investors in Scotland have seen stronger returns this month than in February.
“This is the first rise in monthly yields since March 2017 and demonstrates why many investors from elsewhere are now looking towards Scotland to maximise returns.
“Additionally, with more tenants now renting for longer thanks to the introduction of the PRT, landlords are benefitting from the increased security and stability provided by these tenancies.”
The only two regions to offer returns higher than the Scottish average during March were the North East (5%) and North West (4.8%) of England.
The Highlands and Islands region posted the biggest increase, with a typical property now being let for £688 per calendar month. This is 4.9% higher than a year ago but lower than the double-digit increases seen last year.
The only area to have higher rents was the Edinburgh and Lothians region, where the typical tenant pays £699 a month following a 4.6% year-on-year rise.