Investing in a buy-to-let property provides the opportunity for long-term investment and growth. Property prices will likely increase in the long-term, which means you could make a reasonable profit when you come to sell the property. Renting out your property to tenants who will pay your mortgage for you and provide some extra income is the best way to make an investment.

Buy-to-let mortgage fees and interest rates are also usually higher than ordinary mortgages. Most buy-to-let mortgages are interest-only, meaning you pay the interest each month. You will then pay the interest on the loan as it accrues every month, generally from the proceeds of the rent they collect. The full amount of the mortgage is paid at the end of an agreed term.

The minimum deposit for a buy-to-let mortgage can vary between 20-40%; however, it is usually 25% of the property’s value.

It is a good idea to use price comparison websites and look for the most suitable buy-to-let mortgage for you. Most of the big banks and some specialist lenders offer buy-to-let mortgages. As with ordinary mortgages, you will have more mortgage deals available if you have a good credit history.

The maximum amount you can borrow depends on the amount of rental income you expect to receive, the deposit, and your personal circumstances. Lenders typically need the rental income to be 25–30% higher than your mortgage payment. It is a good idea to find out how much similar local properties are rented for to get an idea of how much your rent will be.

Choosing a buy-to-let property depends on your budget and the tenants you are expecting to live in it. It is a good idea to research your chosen area and find a property that is close to necessities and is also in a reasonable attractive location. Properties near to good transport links and amenities are likely to get the best rents and always be occupied. You should also first check the condition of the property, and how much maintenance it requires. If you are interested in more than one property, you could consider building a property portfolio. This means purchasing a number of buy-to-let investment opportunities with the aim of generating a significant return on investment.

Ensure that all gas appliances are maintained in good order and pay for an annual service from someone who is licenced to legally work on gas. You must give the tenant a copy of the gas safety certificate to prove that whoever is checking the gas appliances is licenced.

As a landlord, you must make sure the electrical system and all appliances in the property are safe to use.

Your local fire service can provide a free home check to advise you on the measures you’ll need to take.

It is the landlords responsibility to fit and test smoke alarms and carbon monoxide alarms. Not checking these can have serious consequences.

If the rental property is furnished, all furnishings must comply with fire and furnishing regulations, Any soft furnishings must have a ‘carelessness causes fire’ label.

You need to provide tenants with a tenancy agreement when they decide to rent your property. This should include information on who will be living there, how much the rent they’ll pay is and the conditions they are expected to meet. The document should also include how the rent should be paid, the start and end dates of the tenancy. It should also provide an outline of the bills for which the tenant is responsible.

Letting agents take on responsibilities such as sourcing a prospective tenant, rent collection and full management. Having a letting agent can be timesaving and sometimes leave you with minor maintenance. This is particularly beneficial if you don’t have time to fulfil duties such as finding tenants. They offer professional help which can particularly benefit new landlords or landlords with numerous properties.