Buy to let has always been a popular route into property investment and continues to be one of the best ways to build long-term income. When done properly, buy to let offers stable rental income, long-term growth, and the kind of control that other asset classes often lack. But success doesn’t come from luck and picking the right property, in the right location, is key to success.
That means looking beyond the sales pitch and focusing on what really matters. From location and layout to compliance and condition, every detail plays a part in how your investment performs.
In this guide, we’ll break down exactly what makes a great buy to let property and how to spot one before someone else does.
Location, Location, Location
It’s a phrase most have heard, but for buy to let investors, the location really is everything. The right area will attract better tenants, keep your property occupied, and drive long-term returns. The wrong one? Higher voids, lower rent, and potentially a lot more stress.
Look for areas with strong rental demand. That usually means good transport links, access to shops, parks, or universities, and proximity to major employers or business hubs. Places with regeneration underway or future development plans often show stronger capital growth potential, especially if you’re investing for the long term.
Some investors also target areas with Article 4 restrictions already in place. While these mean you’ll need planning permission to convert a home into an HMO, they can also reduce competition and push up rents in high-demand zones.
The key is knowing what tenants want in that specific area and then buying accordingly to fulfil that demand.
Tenant Demand and Target Market
Before you even start searching for an investment property, you need to have an idea of who you’re actually buying it for. A successful buy to let isn’t just about the bricks and mortar. It’s about matching the property to the right tenant market.
For example, if you're planning to target young professionals, you’ll need to think about transport links, en-suites, and low-maintenance living. For families, it’s all about space, schools, and outdoor areas. Student lets come with their own set of expectations, from high-speed broadband to hard-wearing interiors.
Your ideal tenant should always influence your decisions, from the number of bedrooms to the layout and even the street you buy on. And if you're considering an HMO rather than a single let, be prepared to meet stricter compliance standards and manage more tenants under one roof.
Understanding demand in your chosen area and tailoring your purchase to it, is one of the simplest ways to protect your investment and ensure long-term occupancy of your property.
Property Condition and Required Works
The condition of a property can make or break your numbers. A place that looks like a bargain on paper might need more work than it’s worth, while something that’s ready to let straight away could save you time, money, and hassle.
Before you commit, look closely at what needs doing. Light refurbishments like redecoration, new flooring, or a kitchen update can all help boost rental value without breaking the bank. But if the property needs a new roof, rewiring, or damp treatment, those kinds of costs can add up fast and quickly eat into your potential returns.
Spotting remedial works early is key. It’s not just about cosmetic appeal, it’s about compliance, safety, and futureproofing. Even things like EPC upgrades or boiler replacements can become unexpected costs if you don’t factor them in upfront.
The better your assessment at the start, the fewer surprises you are likely to get later on.
Rental Yield and Return on Investment (ROI)
Yield and ROI are two of the most important figures in any buy to let deal, and knowing how to calculate them properly will help you compare properties with a clear head.
Rental yield shows how much income a property generates compared to its purchase price. It’s worked out by dividing the annual rent by the purchase price, then multiplying by 100. So, if you’re buying for £180,000 and charging £1,200 a month in rent, your gross yield is 8%.
ROI, on the other hand, takes your total investment into account including deposits, refurbishments, and fees and then compares it to your net profit. It gives you a better view of how hard your money is working.
What’s a “good” yield? That depends on the area and property type, but in many parts of the UK, anything from 6–8% is considered strong. Just make sure you’re comparing like for like and that you’re factoring in all the real-world costs.
Local Regulations and Compliance
Every landlord has legal responsibilities to uphold, and missing something early on can turn a solid investment into a costly problem. Before you buy, make sure you understand the local rules that apply to your property type and its location.
If you're looking at HMOs, check whether the area falls under an Article 4 Direction. If it does, you’ll need planning permission to convert a property into an HMO, even for small ones and even then, licensing rules can also vary. Some properties need a mandatory HMO licence, while others might fall under selective or additional licensing schemes.
You’ll also need to consider EPC requirements, gas safety checks, electrical inspections, and fire safety standards. If a property doesn’t meet the minimum energy rating (currently E, with talk of this increasing), you’ll need to budget for improvements before it can be legally let out to tenants.
Remember, staying compliant isn’t optional. It protects your tenants and your investment. Don’t get caught short and take time to fully understand your obligations.
Financing and Exit Strategy
How you choose to finance a buy to let can ultimately shape the whole investment. Mortgage rates, product fees, and loan-to-value limits all vary depending on the property type, with some lenders having stricter criteria for flats, HMOs, or properties needing refurbishment.
It’s worth speaking to a broker who understands the buy to let market and can help you compare options properly. Even a small difference in interest rate or terms can have a big impact on your cash flow over time.
Just as important is having a clear exit strategy. Are you buying for rental income, capital growth, or a mix of both? Will you sell after a few years, re-mortgage to release equity, or hold for the long term?
The clearer you are on your goals from the start, the better decisions you’ll make along the way.
Ready to Find the Right Property?
Ready to Find the Right Property? A great buy to let property isn’t just about price. It’s about location, demand, condition, and how well it fits your goals. Taking the time to understand what really matters will save you money, reduce risk, and help you build a stronger, more reliable portfolio.
If you’re looking for support sourcing your next investment, get in touch with Property Elevate. We help investors make confident, informed decisions backed by our own experience, insight, and local knowledge.