Five top tips for buy-to-let success

Be realistic about the time you have available

Be honest with yourself: consider the current demands on your time and how much you want to get involved in day-to-day property management, with all the extra hassles this can involve. (72% of Romans’ landlords choose the Fully Managed service.)

Find the right property

Put your personal tastes aside and seek advice (preferably from an experienced lettings agent) on the best properties to invest in. Some areas, for example, may experience a higher demand for family homes, or it may be that apartments will give you a better return in areas with more commuters and younger single people.

You could also consider refurbishment, if you want to keep down the cost of the initial outlay, or alternatively a new build home means that many of the set up costs are removed.

Calculate both short and long term returns

There will be a long term return from your property investment, as (despite short term price fluctuations) it will rise in value over time - but your immediate return is from your rental income. Remember to factor in costs that may occur regularly, such as repairs and maintenance, and seek expert advice on what yields you can expect to achieve.

Understand the tax issues

One of the reasons for the buy-to-let boom in the first place is that there are some good tax breaks. For example, you can claim your mortgage interest against your rental income, and also some money for repairs and maintenance. Insurance, cleaning, gardening services, and commission paid to lettings agents can also be offset against tax. Expenditure on energy efficiency measures can also be offset against rental income as an expense at your marginal income tax rate.

Get the right mortgage

Buy-to-let mortgages are usually very different to a standard one, with the gap between fixed and variable rates not as wide as with residential mortgages. There’s a good choice of buy-to-let mortgages available – however, many are only accessible via intermediaries such as flower IFA, who can look at all the options on the market.