Your Move Scotland has found that landlords in Scotland saw an average return of 4.7% in the year to March 2019.
This is the first monthly increase in yields since March 2017, and Your Move Scotland says this suggests that the recent squeeze on returns may have come to an end.
Across Scotland the average rent increased 1.8% in the past 12 months to reach an average of £580 (seasonally adjusted). This is 0.2% higher than a month ago.
On a non-seasonally adjusted basis the average rent was £593.
Rents rose in most areas of Scotland, although the pace of increase has slowed from the highs seen in 2018, Your MoveScotland found.
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. This follows a 4.6% year-on-year rise.
Elsewhere, there were also rises of 1.4% in the East of Scotland and of 0.9% in the Glasgow and Clyde region. The average rent in the East is now £541 per calendar month while in Glasgow and the surrounding areas it is £589.
The South of Scotland was the only region to see prices fall on an annual basis, dropping 1.9% to £537. It remains the cheapest place to rent in the country.
On a monthly basis, two regions posted rises in rents, a further two saw prices fall while rents in the Edinburgh and Lothians regionwere flat compared to February.
The South of Scotland saw rents rise by 0.6% month-on-month while the East of Scotland posted a 0.5% rise. The largest fall was the 2.5% decrease recorded in the Glasgow and Clyde region, while the Highlands and Islands saw a 0.5% fall.
On a national basis, the average Scottish rent increased by 1.8% in the year to March to hit £580 per calendar month (seasonally adjusted). This figure is 0.2% higher than February. On a non-seasonally adjusted basis the average rent was £593.
Brian Moran, lettings director at 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.”
