Landlord Advice: Buying a House to Rent

This is what we at The Letting Company consider to be the most important matters for consideration when buying a property for the rental market.

This is not a comprehensive list, rather pointing you in the right direction.  Other matters are bound to arise as you progress through financing, choosing an Agent, dealing with Insurance and then finding the property and making comparisons to decide which property is the right investment for you.

Choosing your Finances, Insurance, Accountant and Agent

Before you arrange your first viewing of a property, it is a good idea to ensure firstly that you have the right finance to be able to purchase a rental home, especially with the current mortgage availability.  Size of deposit will be crucial and by speaking with a mortgage broker (always better to ask your friends for a recommendation if you are unsure, you will be surprised just how many are also Landlords!) you will get a feel for exactly what calculations are needed to ensure the mortgage will be covered by the rent.


It is popular now to call Buildings Insurance for a rental property Landlords Insurance. It is not, it is Buildings Insurance, but you would still be better to speak to those who specialise in the rental market rather than mainstream insurance providers, who always seem to offer Landlords Insurance as a premium.  Some Mortgage Companies now insist on their own insurance policies, ensure you are aware before committing to a mortgage what the cost is as it could make your mortgage less competitive.  There is also proper Landlords Insurance to be considered – it is a policy that offers Guaranteed rent if the Tenant fails to pay the rent and legal expenses to remove the Tenant as quickly as possible and of course, using Industry specialist experts to carry out the role.


Income received from renting property is subject to tax and therefore we strongly recommend that you take advice from an Accountant. Expenses incurred can be set against tax liability, as can the interest paid on the mortgage.

Overseas Landlords:

When collecting rents for overseas Landlords, the Agent is obliged by the Taxes Management Act (TMA) 1970 to deduct monies (currently equivalent to 22% of the gross rents) to cover any tax liability.  You may wish to employ a suitably qualified Accountant to obtain an exemption certificate from the Inland Revenue.

Landlords who reside overseas and own rented property in the UK are able to apply to the Inland Revenue for an exemption certificate, which enables us to pay them gross rent (subject to our deductions).  However, if they do not apply for exemption, it is a statutory requirement that Letting Agents deduct tax at source – we are happy to discuss this further with you.


I would suggest The Letting Company of course!! The ever changing legality surrounding this market means that we would suggest a professional Letting Agency should look after your property.  In short, these are some of the reasons why; ability to reference tenants, regular property visits, arrears chasing systems, knowledge of the industry and the law, professional inventories, professional agreements and clauses and a network of maintenance contractors.  The Letting Company also has ARLA qualifications providing a professional advantage.  What you need to do is choose an Agent before you start.  Make sure they are associated with a professional industry body and belong to such organisations as ARLA.  A good Agent will be able to advise you at every stage and all free of charge until such time as you yourself are earning from the property.

What are you waiting for – call The Letting Company today for a quality service and professional advice – 01536 402323/01733 315020 is a website owned and managed by Richard Gibbs trading as The Letting Company and our VAT number is 876269571.
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