Buy to Let 'for the long term'

With worries over the value of pension schemes, buy to let is seen by many as an attractive alternative means of guaranteeing a comfortable retirement. Alistair Scott from Bush Property Services has some advice on how to go about it.

"All buy to let clients should make sure that they look on their property as a long-term investment. Rents rarely cover mortgage repayments and therefore much of the benefit to a landlord will come from the capital appreciation.

"Don't forget to budget properly; it's not simply a question of rent vs. mortgage. You need to take into account repairs, council tax, replacement of fixtures and fittings etc. New government legislation has also added to landlords' costs so it's important to do your research and, if you're new to the business, to take professional advice.

"Always set the rent realistically, particularly in a competitive market. £25 here and there can make a lot of difference in a crowded rental field.

"Make sure you choose the location of your property carefully. Naturally, many investors are attracted to new brown field sites as they are in or close to the city centre and therefore easier to let. They have the added advantage of being new, and are therefore more attractive to prospective tenants. Be aware, however, that a glut of properties coming on the market at the same time in one area means that rents, at least in the short-term, are likely to be extremely competitive.

"On the subject of what homes to buy, make sure that the property is close to one or more of the following; good transport links, good shopping, a town or city centre or a major place of work. And ensure it's decorated blandly. Bright or exciting colour schemes and 'unusual' fixtures and fittings can scare off tenants.

"When renting out to a new tenant, we always recommend the minimum period possible, i.e. six months, in case there is a problem. Once tenants have successfully completed six months, offer them another fixed term or a month to month agreement."