How residential property investors select properties: evidence of path-dependent frame contraction in the Scottish private rented sector

Purpose This article seeks to understand how residential property investors (private landlords) approach asset selection in the Scottish private rented sector (PRS). Drawing on a conceptual model refined from the findings of the literature review, it explores how landlords access the choice frame of available properties, simplify that choice frame and undertake property appraisal. Design/methodology/approach The research adopts a sequential mixed-methods design, beginning with an online survey of over 1,000 Scottish landlords followed by 33 semi-structured interviews with landlords and PRS professionals. The survey established a representative profile of landlord characteristics and behaviours, while the interviews provided the primary source of empirical evidence, offering deep insight into landlord asset selection processes. Findings Landlords broadly follow a three-stage process in which they access, simplify and appraise the choice frame to identify properties considered suitable for acquisition. Their approaches combine elements of rational analysis with bounded rational satisficing shaped by heuristics, biases and preferences. The interdependence of key investment criteria (investment orientation and return, property location, target market served and property type) creates constraints that progressively narrow their field of options, a phenomenon conceptualised as path-dependent frame contraction. While the process aids expediency, it does not necessarily ensure optimal asset selection. Originality/value The article provides the first examination of landlord asset selection through the combined lenses of behavioural finance and normative investment theory. It introduces the concept of path-dependent frame contraction, conceptualised from the empirical findings, to explain how early preferences structure and constrain subsequent investment choices, shaping the composition and functioning of the PRS from the ground up.