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“Being a landlord isn’t just about collecting rent every month. There are lots of things to consider before you take the leap as a landlord," says Eddie Hooker, chief executive of mydeposits.co.uk – this couldn't be more true and all new buy to let borrowers would do well to remember that.

Many Brits investing in property think it's a matter of picking the house and getting a mortgage, but there is much more to it than that.

One thing to remember is to be realistic and flexible about the amount of rent you are asking as it is better to have some money coming in than an empty property for weeks on end. That's were homework comes in – talk to letting agents in the area and see how much you could realistically charge. Making big profits might be great, but knowing you can make enough to cover the mortgage is paramount, so don't put that at risk with too high a price tag.

Also, make sure that you know what your legal obligations as a landlord, for example, fire and gas safety standards. There are piles of regulations and rules that a buy to let landlord must do, and missing one might cost them dearly – for example, did you know that it is law that a tenancy deposit must be protected through a Government-authorised protection scheme? Also, it is law that all buy to let properties have an Energy Performance Certificate – didn't know that either? Then speak to an expert to find out what else you might need to do.

There is also protection to think about – what would happen if a handyman, working for you, slipped and broke his arm? Or what would happen if an estate agent injured his or herself while showing tenants round your property? Having the right landlord insurance is as important as filing in any health and safety form or asking for a sensible rent.

This list could go on and on as there is so much new buy to let landlords have to do and understand before the profits come rolling in. But the first step is to get a good buy to let mortgage so as to be able to afford a property. Once that is sorted, new landlords have a good base from which to build their business and hopefully make some decent profit.

SOURCE: Mydeposits.co.uk, 18/03/10

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