Plan your finances in detail 
As more and more lenders have come into the market offering buy to let, there is now a wide range of mortgage types to choose from. There should be a mortgage product to suit your individual requirements. Of course, although property has performed well as an investment in the past, this can’t be taken as a guarantee that it will perform so well in the future.
Step 1: Do you want growth or income?
One of the first decisions you need to make is whether you want growth or income from the property you let. Prime city centre locations are probably best if you want high growth. And if you’re looking for a regular income, suburban sites should provide higher rent relative to the cost of the property.
As a rule of thumb, the Association of Residential Letting Agents (ARLA) says most landlords should be able to get gross rent equivalent to between 7% and 10% per year of the value of a property. The most popular properties for letting and resale alike tend to be those in the £75,000 to £150,000 price band.
Once you have decided on the kind of property that you want you’ll need to find a letting agent. Your agent will help you:
You’ll also need to put yourself on the books of all the estate agents in the area so they can send you details of suitable properties when they become available.
The charges letting agents make vary from one part of the country to another, but are normally about 8% to 10% of the rent agreed. If you want the agent to deal with repairs and tenants’ complaints as well, you should budget for a fee of around 15%.
Look for a letting agent who is a member of ARLA . As an ARLA member, they will have joined a bonding scheme that will protect your rent and your tenants’ deposits against the agent misappropriating them. To find an ARLA member near you, call the Association’s hotline on 01923 896 555.
Step 3: Know your job as landlord
As a landlord, you will be responsible for the upkeep of the property, the buildings insurance and insurance for any contents at the property that you own. Your tenants are responsible for insuring their own property kept on the premises.
You also have to ensure that any gas or electrical equipment is safe and complies with the relevant regulations. This includes arranging an annual gas safety check.
You can offset maintenance costs such as cleaning, gardening, your mortgage interest and your letting agent’s commission against your tax.
Step 4: Know the dangers of buy to let
There are a number of potential pitfalls to buy to let.
