What should you check before buying a buy-to-let?

Annual rent divided by the purchase price. £12,000 a year on a £200,000 property is a 6% gross yield.

Take off letting and management fees (often 10–15% of the rent), insurance, maintenance, the service charge and ground rent, and safety certificates.

Look at what similar homes nearby are listed at and how long they stay on the market, not the agent's best guess.

Budget for periods between tenants, and for arrears.

Check the deal still makes money if your mortgage rate goes up 2 or 3 percentage points when the fixed rate ends.

In England, buying an additional home usually adds 5% on top of the normal stamp duty rates. Wales charges its own higher rates of Land Transaction Tax.

Individual landlords can't deduct mortgage interest from rental income. Instead you get a tax credit at the 20% basic rate, so higher-rate taxpayers pay more (the rule is often called Section 24).

Gains on UK residential property must be reported and the tax paid within 60 days of completing the sale.

Each is taxed differently and uses different mortgages. Get advice from an accountant before you buy, because switching later costs money.

Buy-to-let mortgages usually need at least 25% down, and the best rates need more.

Lenders typically want the rent to be 125–145% of the mortgage interest, worked out at a higher test rate.

Short leases, flats above shops, ex-council blocks and some HMOs have fewer lenders and higher rates.

A low rate with a large fee can cost more overall. Check the early repayment charges if you might sell or remortgage.

Each area's price page shows the change over one year and ten years, using HM Land Registry sold prices.

Put up to four areas side by side on price, growth and number of sales.

Flats and houses often grow at different rates in the same area. Check prices for each property type, not just the overall average.

Areas with few sales each year can be slow to sell in. Plan your exit before you buy.

Students, young professionals and families want different things in size, layout, transport and schools.

Lots of similar homes to let, or homes sitting empty for weeks, suggests there are more landlords than tenants.

New transport links, employers or large housing developments change demand. Check the council's planning register.

Large HMOs (five or more people from two or more households) need a licence, and many councils also license smaller HMOs or every rental in an area.

You can't let a home rated below EPC E without an exemption. The government aims for as many rentals as possible to reach C by 2030, but that isn't law yet.

You need a gas safety check every year, an electrical inspection at least every five years, and working smoke and carbon monoxide alarms.

Deposits must go into a government-backed scheme within 30 days.

It ends section 21 'no fault' evictions and moves tenancies onto rolling terms, so plan for how and when you could get the property back.

Check every adult tenant's right to rent before the tenancy starts.

Welsh landlords must register, and anyone letting or managing a property must be licensed. Tenancies are occupation contracts under the Renting Homes (Wales) Act.

The survey, searches, flood risk and lease checks protect your investment as much as a home.