The Money Centre's Top Ten Tips for buy-to-let
1. Do your research into buy-to-let by speaking to established portfolio landlords. Listen and learn by their experiences and mistakes - it will prevent you making your own!

2. Speak to at least three established property managers in the area you plan to invest in. They will provide you with advice on rental demand, popular areas with tenants and property types that let particularly well. Wherever possible, ensure the advice and guidance you seek is independent.

3. Talk to University Accommodation Offices. They will know exactly what types of properties and areas are popular with students, as well as informing you of the going rate for rent. They will also happily introduce you to potential students tenants looking for housing.

4. Once you have selected the property you want to purchase as your first buy-to-let investment, go back to a property manager and ask them for an indication of achievable rents and the demand for this particular property.

5. Armed with all this information, speak to a buy-to-let specialist, a broker like The Money Centre. They will calculate and recommend methods of maximising your returns by choosing the right mortgage products to suit your strategy. They should recommend a mortgage product that suits you as a new buy-to-let investor as well as serving you well into the future as you continue to build a portfolio of properties.

6. Ensure the mortgage facilities you arrange can be easily increased in line with rises in the value of your property. This is vital if you want to build a portfolio of properties.

7. Make sure you have a contingency fund set aside for redecorating (unless you are purchasing a brand new property.) No matter how tidy the property looks when you view it, once furnishings have been removed it will be in need of a spring clean.

8. Ignore your personal preferences when decorating. This is a property to let, not to live in. Paint all walls magnolia and ceilings white, carpets need to be smart, hard wearing and neutral - bright airy properties let quickly. And to keep costs to a minimum, by buying felt-backed bleach cleanable carpets. You won't need underlay and they will require less cleaning.

9. Use the local Landlords' Association. They are an invaluable resource and will put you in touch with reputable and reasonably priced tradesmen in the area. They also offer discounted specialist insurance packages with competitive rates, which are exclusive to their members and cut-price deals on tenancy agreements and legal documents.

10. Finally – constantly monitor the value of your first buy-to-let property. It is crucial you are aware of increases in value so you can capitalise on opportunities to release equity through re-mortgaging. Releasing equity will fund deposits for additional properties, helping you to become a portfolio landlord before you know it!

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The secret of getting started in buy-to-let
Thinking about a buy-to-let? Here's what you need to know to boost your chances of making your career as a landlord a success. I spoke to a first time investor about her experiences and what made it work for her.

Until last summer, Gill Knights was living in a one-bedroom flat in Hertford, but then the time came to move into a new home with her partner. Instead of taking the obvious option and selling the flat, Gill decided to let it out, taking her first step into the buy-to-let market, a process she just completed in October 2005.

Gill commented: "I didn't want to sell my flat as I thought it would make an ideal property for renting out to single professionals. I had heard a lot about the benefits of buy-to-let investment and was keen to embark on it but didn't really know where to get started. I knew I needed to change my mortgage to a buy-to-let mortgage, but I also wanted to re-mortgage my flat to release equity to finance my new home. To be honest, it was all a bit of a minefield trying to find out what choices and mortgage options were available to me."

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First timers should speak to a specialist for advice
Gill continued, "I would definitely advise first-time buy-to-let investors to speak to a specialist buy-to-let broker (Ed: Gill used The Money Centre) before signing anything. They are knowledgeable and experienced and know what your options are as a first timer. They can also get you access to exclusive mortgage offers not available elsewhere.

"I found it reassuring to know I had some support during the mortgage process to help with paperwork and chase others on your behalf. It took a lot of time and hassle out of the process and gave me the chance to concentrate on the purchase of my new home with my partner."

"Once the mortgage on my flat had been switched to buy-to-let, and the property had been re-mortgaged to release equity, I started to look for tenants. The flat had been well cared for as it had been my home so I didn't have to do any major redecorating. However, I did have to replace my boiler. It had been temperamental for some time and while I was happy to live with it, as a new landlord, I couldn't take the risk of leaving this with my tenants. So whatever state your property is in, you do need to have a contingency fund set aside for maintenance and decoration to prepare the property for letting."

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Make sure you are properly insured
"First-time investors are bound to have their concerns. My initial concern was that tenants would ruin my property. So, my buy-to-let consultant advised me to take out landlords' insurance, which covers me against damage, void months and rent not being paid. I was also advised to take a deferred months rent as a deposit to cover against damages, which could be retained at the end of the tenancy agreement to cover costs."

"Since becoming a buy-to-let landlord, I have not had any problems finding tenants. Young single people who are keen to move out of home, but can't afford to buy in the current property market, have been keen to rent the flat. And because I haven't had any problems finding tenants, I can afford to make some conditions as to whom I rent to. Personally, I prefer tenants who are non-smokers and who do not own pets. This is a nice position to be in and means I can protect the condition of my property."

"I would certainly recommend buy-to-let investment as a way to secure your financial future. With the pension system in disarray, I am glad I chose to invest in property when I did. My partner also has one buy-to-let property, and we are confident our investments will provide us with a more financially secure retirement. Although we have no immediate plans, I am sure we will both continue to build upon our investment in the future.

I will monitor the value of the flat to grasp any opportunity to release equity and reinvest in property, and this is something I will certainly do until the time comes again to extend my investment."

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