Many people become landlords to climb the property ladder or to support their income or pension. Until 2007, property returns from rents and capital growth (the increased value of a property minus the purchase price), exceeded most people’s expectations. However, 2008 brought a stark reminder that buy to let property investments can fall as well as rise.

Landlords that over borrowed have received a nasty shock. Prices have stalled and is some cases fallen. Lending criteria for buy-to-let investment has tightened and mortgage costs increased. Even worse, an oversupply of certain properties (such as flats in major city centres) led to some highly publicised buy-to-let landlords and investment companies going bust.

However, this loss in value is likely to be short term and successful property investors know that buy to let is a long-term investment of at least ten or more years. So if you own a buy to let property, you need to ride out the changing property prices by thinking long term. In addition, if you are just starting out in the buy to let property market, careful, independent research of the local economy, the rental market and different property types are required to be sure you gain a good initial and continued return on your investment.

Investing in a buy to let property is the same as investing in a new business: you need to raise finance via loans/mortgages; make your properties attractive to gain the right calibre of tenants; keep your accounts in order; let within the law and sell at the right time to maximise your profits. Being a landlord is a demanding role that can soon become a nightmare if you are not prepared.

Active Insurance is a leading UK independent brokers specialising in property insurance. If you are looking for cheap landlords insurance, speak with one of our dedicated specialist insurance account handlers on 844 477 9805 or alternatively visit our website http://www.insurancedealer.co.uk/ for a free online quote.