Choosing the right rental property and setting the rent

To succeed as a landlord, you need strong demand, reliable tenants, and rent that stacks up against your mortgage and running costs. If you set the rent too high for the property type or the local market, you risk longer void periods and reduced overall returns.

Before you commit, research comparable rents in the area and consider how the property’s condition, layout, and fixtures will affect what tenants are willing to pay. Small upgrades can improve demand; over-spending rarely increases rent in the way people hope.

Planning for gaps between tenants

Even the best rental properties can have periods without a tenant. Someone moves out, it takes time to find the next tenant, and you still have a mortgage to pay in the meantime.

A contingency fund helps you stay in control when costs pop up, including:

• Maintenance and repairs

• Annual gas safety checks and other compliance requirements

• Letting agent fees and advertising

• Landlord insurance

• Service charges and ground rent, if applicable

Budgeting properly from the start is one of the biggest differences between landlords who grow their portfolio and landlords who feel constantly stressed.

Interest only vs repayment Buy-to-Let mortgages

Many Buy-to-Let mortgages are interest only, meaning your monthly payment covers the interest and the full loan balance remains the same until the end of the term.

Interest only can lower monthly payments and improve cash flow, but you must have a realistic plan to repay the capital at the end. Some landlords choose to sell, refinance, or use other funds; but it is important to remember that property values can go down as well as up.

Repayment options are also available. These gradually reduce the loan balance over time, which can suit landlords who want longer term security rather than maximising monthly rental income.

Fixed rate and variable rate deals

Buy-to-Let mortgages can come with fixed or variable rates. Fixed rates can offer predictable monthly payments for a set period, which can help with planning and budgeting. Variable rates may start lower, but can change over time.

The best option depends on your plans for the property, how long you want to hold the deal, and how comfortable you are with rate changes.

How GPS Financial can help

Many Buy-to-Let lenders only work through mortgage intermediaries, which means using a broker can give you access to a wider range of options.

At GPS Financial, we support first time landlords and experienced portfolio owners across the UK. We will help you compare suitable lenders, understand the numbers, and manage the process from application through to completion.