Ready to BTL?

A few words of wisdom in the Sunday Times today to help those people thinking of buy to let...

Flat or house? flats do well in the cities,  but family homes are better in rural areas or near good schools.

Do I splash out on furnishing? generally, classier interiors means classier tenants - but don't go mad.

Should I manage it myself? this will save money - management fees are typically 8-15% of rent - but it means finding a tenant yourself and taking charge of repairs.

Do I need insurance? yes - not just buildings and contents, but cover for emergency repairs; landlord's liability and rental guarantee.

Will I have to pay tax? yes. Maintenance and management costs are deductible, but not improvement work or furnishing the property. When you sell, you may be liable for capital gains tax, too.