Buying property to let

Investing in property can be a profitable business venture and a great way to save for the future. However, there are many practicalities that you need to familiarise yourself with when committing to being a landlord.

Before entering the market, think about:

  • Return on investment
  • Interest rates
  • Long-term commitment
  • Rental income and capital growth when selling the property – ask your agent for advice regarding property yields
  • Seek advice from owners of buy-to-let properties
  • Have a budget in mind
  • Establish a maintenance fund
  • Factor in unforeseen/emergency expenses
  • Prepare for voids
  • Agent fees
  • Income tax on profit
  • Fees/costs to offset against tax bill
  • Stamp Duty fees

A buy-to-let mortgage will be required, which will be assessed differently from residential mortgages:

  • Assessed on likely income from property
  • Lender may stipulate minimum salary
  • Higher interest rate and deposit

Landlords are required by law to pay tenant deposits into a government protection scheme for assured shorthold tenancies.

Types of schemes:

  • Deposit Protection Service
  • MyDeposits
  • Tenancy Deposit Scheme


  • Transport links
  • Local leisure activities
  • Potential rental income of similar properties
  • Property hotspots – regenerated areas
  • Crime rates


Set a clearly defined tenant profile that you wish to attract as this may affect your search – e.g. student, young professionals or families.


  • Type of property that matches tenant profile
  • Parking availability
  • Outside space
  • Age of property