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Buy-to-let mortgages are available from many mortgage lenders: banks, building societies and specialists. Many potential landlords use a mortgage broker to find them the best buy-to-let deal, as it can save time.

Investing in property can be very lucrative, but it is essential that you do your homework and research the options: What type of property should you buy? Should you use a lettings agent? What mortgage rates are available?

One of the first decisions you need to make is whether you want growth or income from the property you let. Prime city centre locations are probably best if you want high growth. And if you're looking for a regular income, suburban sites should provide higher rent relative to the cost of the property.
As a rule of thumb, the Association of Residential Letting Agents (ARLA) says most landlords should be able to get gross rent equivalent to between 7% and 10% per year of the value of a property. The most popular properties for letting and resale alike tend to be those in the £75,000 to £150,000 price band.

There are 3 main differences in buy to let mortgages:

• Rent Potential - the decision as to whether or not a mortgage will be offered is usually based on the rent you will earn as well as your income. In some cases your income is not ever considered.
• Interest Rate - buy to let mortgages have slightly higher interest rates.
• Larger Deposit - typically a minimum of 20% or 25% of the property's value is required as a deposit.

Becoming a private landlord should not be seen as an easy way of making easy money. It can be riskier and more complicated. It can also be very time consuming, more than most forms of investment, and there is no guarantee that house prices will continue to rise. That said, having a second property to let to tenants could reap considerable financial rewards over time.

When you manage a property there are many costs involved in addition to the monthly mortgage repayments. As a guide, you should be aiming to achieve a gross rent of about 135% of the rental property's interest only mortgage repayments in order to cover your costs should anything go wrong.

These additional costs include:

• Property upkeep - maintenance costs for the property.
• Letting agent's fees - letting agents charge around 10% of the monthly rent for finding and vetting tenants with an additional cost of around 5% if you require a full management service.
• Ground rent / service charges - applicable to leasehold properties.
• Legal insurance - to cover costs from evicting tenants in the event of non-payment, very important, as this can be very expensive.
• Insurance - building insurance and contents insurance for the items provided as part of the rental agreement.
• Furnishings - the purchase of any furniture. If the property is to be let furnished, make sure you are covered for this by your home insurance.
• Gas / electrical appliances - cost of maintaining appliances and ensuring theycomply with any regulations such as safety tests.
• Decorating costs - the property may require work ranging from painting, to a new bathroom suite before it is suitable for letting to tenants.

Below is our checklist and a few pointers for helping you in your buy to let decision making.

BUY TO LET AND BUY TO LET MORTGAGES

1. Work out the deposit that you have available for your buy to let mortgage. You can normally only borrow 80 per cent loan to value, so your deposit will determine the price of the property that you are looking to buy to let.

2. Get advice from a local estate agent about types of property most likely to be let in the area and the level of rents paid.

3. Research mortgages and apply for an acceptance in principle if you spot a deal you want. You will be expected to produce expected rental income plus salary details.

4. Put an offer in on the property you want. Once it has been accepted, commission a valuation

5. If the property is old you should commission a Homebuyers Report or full structural survey

6. Instruct your solicitor to carry out the purchase and provide them with details of the property, the estate agent, seller and your lender

7. Lender receives valuation report and, if all is in order, agrees the mortgage

8. Solicitor carries out local authority search and confirms legality of title

9. Pay the deposit, sign and return the contract and the solicitors will exchange contracts. You are now legally committed to the sale

10. If the property is freehold you must get adequate Buildings Insurance immediately

11. Get any quotes for building or renovation work and decorating that may be necessary

12. On completion day call the seller's estate agent to pick up the keys. The property is yours to let

13. Get the builders and decorators in as soon as you can. Advertise for tenants just before the work is completed. (Or engage the services of a letting agent to do this for you)

14. Arrange to meet prospective tenants and show them the property once it is ready

15. If you find suitable tenants arrange for them to supply you (or agent) with employer, bank and personal references. Check these.

16. Get a deposit of one month to six week's rent to confirm the tenancy.

17. Make last minute check that the property meets health and safety requirements and write a comprehensive inventory

18. Draw up a tenancy agreement

19. Contact utility companies and the council to arrange for bills to be transferred to tenants' names.

20. Hand over the keys.