Social factors, such as a trend for more people to live alone and the growing average age of first-time buyers, have made reliable tenants easier to find (although you need to check carefully that there isn’t a glut of property for rent in your chosen area and what type of property is in demand). Changes in the 1988 Housing Act mean landlords need no longer fear that tenants, once admitted to the property, will prove all but impossible to evict. This possibility alone was enough to dissuade many people from becoming private landlords in the past. The proportion of UK housing stock taken by rentals stood at a low of 7% in 1989, but has grown to 11% in the ten years since.

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 the property. The most popular properties for letting and resale alike tend to be those in £75,000 to £150,000 price band.

Managing the Property
Once you have decided what kind of property you want, the next step is to find a letting agent to help you consider promising locations, identify suitable tenants, draw up all the documentation needed and collect the rent. In parallel, you will need to contact all the estate agents in the area in the same way as if you were buying for your own use.
The charges letting agents make for their services vary from one part of the country to another, but typically will be 8% - 10% of the rent agreed. If you want the agent to also take responsibility for arranging repairs and dealing with tenants' complaints, budget for a fee of about 15%.
Look for a letting agent who is a member of ARLA. The association's members must join a bonding scheme which will protect your rent and your tenants' deposits if the agent should misappropriate these funds. The bond provides total compensation of up to £2m a year for cases involving ARLA's 600 member companies.

Your Job As Landlord
As a landlord, you will be responsible for the property's upkeep, buildings insurance and insurance for any contents there which you own. It is up to your tenants to insure any of their own property kept on the premises.
You must also ensure that any gas or electrical equipment there is safe and complies with the relevant regulations. This includes an annual gas safety check.
Remember that you can offset maintenance costs such as cleaning, gardening and your letting agent's commission against your tax, as well as your mortgage interest.

The Dangers
Before taking the plunge, it is important to remember that buy-to-let does have its dangers. First and foremost, you should be sure you will be able to fund the mortgage your chosen property demands even if the place should remain empty for a few weeks (or even months).
Properties in run-down areas or those in a poor state of repair may be cheap to buy, but could cost you a fortune in renovation costs. Without renovation, such properties will attract only the troublesome tenants no-one else wants, provide poor rental income, and fetch little money when you come to sell.
One of the biggest dangers of the property market is that you will find yourself having to sell just as prices are in one of their periodic slumps.
A long-term view should allow you to ride out any short-term dips in property prices and sell only when you can get the return you expect.