Of recent years, no business model has appealed to the general populousto the extent of the buy to let.  With a strong and stable economy, andsnowballing property prices, the buy to let market has become anindustry in its own right, and has given rise to untold fortunes forthose brave enough and savvy enough to use this method of finance tobest effect.  Obviously, as with any business, the buy to let has itsown risks, and these are increasing as the market becomes more and moresaturated, yet there is still a great deal of money to be made throughsensible, planned borrowing and property investment.  

The buy to let business model runs on the basis that the borrower isbuying a property to let it out, rather than to live in it as with atraditional mortgage.  In this sense, banks are more willing to lendmoney knowing that the property will generate an income to pay off themortgage ? if the lender can demonstrate that there will be sufficientpayments each month to cover the cost of the mortgage, the bank willbend over backwards to offer a ,which can often cover up to 95% of the value of the property.  With anincome above mortgage payments every month, and a property at the endof it, buy to let is naturally an attractive option despite the manypitfalls that surround the nature of the business.

The first and main problem with buy to let is finding tenants.  Youhave to find tenants for your property and quickly in order to meet themortgage repayments.  The longer your property is left empty, thelonger you have to keep paying the mortgage from your own pocket.  Thekey to a successful buy to let is finding the right tenants quickly;tenants that will pay the rent on time every time to protect thedelicate business of buying to let.  Without good tenants, the buy tolet can be very problematic, and can end up costing you significantlymore than you bargained for.  

Another major problem with letting any property is that as landlord,you have numerous legal responsibilities and duties to perform, andthis burden is increasing year on year.  From repairs to safety checksthrough to the proper process for termination, the law favours thetenants rather than the landlords, and at times it can seem to be quiteproblematic and awkward.  Despite that, the buy to let model can behighly profitable and can present a great return on investment over thelong term.  By providing an income whilst buying a capital asset, buyto let has the potential to make you very rich, but it won't comeeasy.  Mastering buy to let is definitely a skill that takes time andcan be quite costly if you make mistakes along the way, yet for thosewith the business sense to manage finance and a large scale project,this can be a great way to provide a better quality of life for you andyour family.