» Click here for the original article

People invest in a buy-to-let property because they want to make money – but if you are not making money it might be time to do something about it.

Recent figures from LSL Property Services found that, if average rental income and property prices kept on the trajectory they were on in January, a landlord would make a total return of £27,500 on a typical property this year.

That's a better return than most investment funds, and certainly better than any savings products that are on the market. But are you making a decent return on your property?

It might be down to the state and position of your property. But there are things you can do about that – talk to your buy-to-let mortgage adviser about taking money out of your property through a loan or a remortgage so as to be able to renovate the property and make it a sought after home. Investing in your home is a sensible, viable option that, with the right advice, will lead to better rental yields.

But it might be that you are simply paying too much on your mortgage. You may have got your loan several years ago and have now lapsed onto a more expensive variable rate. If this is the case and you need to find a mortgage that doesn't sap quite so much of your rental income, talk to your mortgage adviser. They will be able to help you scour the whole UK buy-to-let mortgage market and hopefully find you a cheaper loan.

Don't be content with just getting by with your buy-to-let loan. House prices are rising against the odds and rental income is high. There is also a lot of demand for rental properties while so many people are unable to get onto the housing ladder – all this spells rental success. So make sure you're taking advantage of this purple patch with a mortgage that works.

SOURCE: LSL, 15/02/10

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog