The Residential Landlords Association today issued some practical advice for people looking to cash in on the buy to let boom.

The association, which represents landlords with over £1.2billion worth of property and more than 30,000 tenancies across the UK, said the rise in buy to let mortgages and demand in the private rented sector are leading many people to invest without fully considering what is involved.

Chairman Martin Moylan said: "The forum on our website is full of comments, questions and even some horror stories posted by people who have entered the marketplace without fully understanding the role of a landlord.

"We are concerned that these 'amateur' landlords are being lured into buying property to let with the promise of high capital returns and annual yields and that they do not understand that by renting the property they become inextricably and directly involved in people's lives. A bad landlord, or one who does not fully understand his role, can make tenants' lives a misery and reflects on the sector as a whole."

The boom in the number of people looking to buy to let has risen sharply as a key area for investment in the UK - and especially as stocks and shares are now failing to provide expected high returns.

More than a million people in the UK now own a second home and more than two thirds of those are currently rented out.

"But while investing in property may appear to offer an easy, healthy and steady second income, as well as the chance of capital gain if the property increases in value, it is not a decision to be taken lightly," explained Martin.

"Remember property is not a short term investment and you need to be able to leave it for 10 years if you want to see any kind of return. On top of that, you will need to appoint a letting agent, which will cut into any profit, or deal with the administration of the tenancy yourself, which could prove to be a day-to-day hassle in itself."

The RLA runs training courses for members as well as offering a package of benefits which includes a tenancy agreement which bears the Crystal Mark from the Plain English campaign. The association has also put together some important tips to consider before investing in buy to let property. They include:

· Make sure you thoroughly investigate the requirements of becoming a landlord and what is expected of you. You must be confident that buying to let is right for you. · Make sure you know the local marketplace by looking at newspapers and agents to see what tenants are looking for in your area, as well as the average rent paid. · Decide if there are any 'gaps' in the local marketplace ie demand for family homes etc you could fill. · Decide on the type of tenants or property you want and work out if the amount of rent you will require is feasible and attractive in the marketplace. · Consider the financial implications for you if the property remains un-let for a period of time.

Martin added: "There is an opportunity for investors but we would urge caution to anyone who sees buy to let simply as a way of making a fast buck. Make sure you are aware of all the implications before you sign on the dotted line."

ENDS March 2001

Notes to editors:

The RLA, the country's leading voice in the private rented sector, has branches throughout the UK and holds regular meetings within 30 minutes drive of all members.