Pailthorpe Property Services Ltd.

Here are a few tips to help you get started on the Buy-To-Let property market ladder.

1. Location, location, location. This is one of the most important factors a tenant will look for. Desirable properties are conveniently located for public transport, local amenities, bars and restaurants, and have parking facilities. If you are buying to let in the student market, proximity to the university is also a major advantage.
2. Consult ourselves to try to find out which areas and what kinds of property are in demand. We can also advise you about rent.
3. Charging too high a rent will put off prospective tenants - research the market conditions thoroughly. Remember that rent is not the mortgage, and if the lettings market is sluggish, you may not succeed is covering your entire monthly mortgage amount.
4. A well maintained and attractive property will be much more in demand than a run down property and rental income will mirror this.
5. If you decide to let the property furnished, it is worthwhile taking some time to find out what features make a property desirable to tenants. Again, we are able to advise you on this.
6. If you have the money, time and inclination, you may consider investing in a property that needs some work. You'll be able to adapt it to the needs of your tenants.
7. If you do not have the time or interest to buy a property that needs a lot of work, a newer property may be more suitable. However, it is worth remembering that even new properties will need maintenance and this will increase as the property ages.

1. When you are buying the property, try to remember that it is not you who is going to be living there. Look at it with an objective eye. Think about the property from a tenant's point of view.

Buy to Let Mortgages

There are increasing numbers of lenders who have loans and mortgages tailored specifically for the buy to let market. These mortgages (also referred to as Residential Investment Loans):

1. will lend up to 15-80% of the purchase price of the property
2. are usually about 0.5 % higher than a normal, standard variable rate mortgage
3. are available in Long, Short, Fixed and Capped options
4. are co-ordinated by ARLA (Association of Residential Letting Agents).

Before committing to an investment loan like this, it is advisable to review your current and long-term situation and make sure that you know exactly what you are getting yourself into. You should ask yourself:

1. Will I be able to cover my mortgage repayments and insure the property if I have no money coming in from rent?
2. Can I afford to lose money/take a loss if the housing market slumps?
3. Will taking out a mortgage on this property affect my chances of getting a mortgage if I decide to move house at a later date?