What is Buy-to-Let?

Buy-to-Let: A Simple Definition

Buy-to-Let – “A method of purchasing a property with the aim of renting it out”

Sounds relatively straightforward, doesn’t it? 

And at its heart, it is. buy-to-let doesn’t need to be complicated. And yet, that doesn’t mean that it isn’t nuanced and it certainly doesn’t mean that it is without risk.

To break it down, however, there are two, core features of any buy-to-let strategy which are:

  1. The rental yield
  2. And the tenant profile

So, essentially, the two main things to consider are going to be your income and your outgoings (your cash flow) and the type of person or persons that you intend to rent to.

If you can get yourself to a position where you truly understand those two factors then everything else will, more-or-less, fall into place.