buy to let guide

Buy to Let

an introduction from the frog

This part of the site is aimed at people who are thinking of buying a property to rent. Becoming a buy to let landlord is not simply a case of renting out a property to the first person that come along. Below are some of the points that should be considered.

The first thing you should do is to do the maths and work out if you proposed buy to let investment will be profitable. Out of your monthly rental income you'll have a whole host of fees to pay such as: buy to let mortgage repayments, tax, letting agency fees, maintenance and many others you wouldn't immediately consider. The start point of any such buy to let investment decisions should be to calculate the buy to let yield on any prospective investment.

Landlords also have many regulatory and legal responsibilities that they should be aware of before entering the market. These range from having gas safety inspections to having specialist buy to let home insurance.

When deciding to enter the buy to let market it is important to remember that you'll need to dedicate a certain amount of time to your portfolio. This time extends beyond your initial research and stays long after you have tenants living in your property. You may want to consider employing the services of a letting agent to help you manage the property and even an accountant to help you ensure you pay the relevant buy to let tax.