You might like the idea of building a portfolio of properties and earning lots of money from buy to let, but being a landlord is not for everyone. You have to enjoy the challenge of sourcing a property with a good return and work out if you can afford to employ someone to take care of the let for you, or if you can cope with the hassle and responsibility yourself.

One difficult aspect for both tenants and landlords is to get the legal aspects right. For example, tenants can no longer have loud late night parties nor can landlords kick out tenants when they like. If you don’t get the procedures right as a landlord, you may be sued or, if a tenant, lose your deposit.

The Rental Market

Rental prices are typically more stable than property prices and renting continues to grow in popularity across the UK partly due to changes in social trends, including:

• People preferring to rent or having to as they can’t afford to buy.
• More students going to university.
• Increased immigration requiring cheap rental accommodation.
• Increased workforce mobility encouraging people to rent rather than buy knowing they may have to move again within a few years.
• Those on benefits who are being encouraged and enabled to rent from the private sector.

To be successful, landlords need to buy the right property in the right area, but what is ‘right’ will vary from place to place and from year to year. In the past, two-bedroom terraced properties have out-performed the market and this may continue; but in some areas it might be one bedroom properties or houses in multiple occupation that are converted into smaller flats and homes when cashing in the investment that come to the fore.

Trade In

Whether a tenant or landlord, find a letting agent who belongs to a professional body – or if a landlord join one yourself. They will help to make sure that you get the right advice, contacts and information on good practice, and should reassure tenants of your good intentions. Landlords can also be accredited by some local councils and student accommodation officers.

Tenants Take

Of course, landlords are only half the equation: many of us will rent property at some time in our lives, and being a tenant is not always easy. Choosing the right property and landlord and the rights and responsibilities of both tenant and landlord need to be taken into consideration.