United Kingdom Guide 9 min read

Buy-to-Let Checklist for 6%+ Yields in 2025

By Apartment Checklist Team

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Important Legal Disclaimer

General Information Only: This article provides general information about property matters in the United Kingdom and does not constitute financial, legal, taxation, or professional advice. UK property law varies across England, Wales, Scotland, and Northern Ireland.

Not Financial Advice: This content does not take into account your individual circumstances, financial situation, or objectives. Before making any property-related decisions, you should:

  1. Verify current information on official government websites, including:

  2. Consult with qualified and regulated professionals:

    • FCA-Authorised Financial Adviser (for mortgage and investment advice)
    • Qualified Solicitor or Licensed Conveyancer (for legal matters and property transfer)
    • Chartered Accountant (for tax implications)
    • FCA-Regulated Mortgage Broker (for mortgage advice)
    • RICS-Qualified Surveyor (for property inspections)

Regulatory Compliance: Under UK law, only FCA-authorised firms and individuals can provide regulated financial advice. This article does not constitute FCA-regulated advice.

Information Currency: UK property laws, tax regulations (including Stamp Duty Land Tax), mortgage regulations, and government schemes change regularly. Information in this article may become outdated. Always verify current details through official government sources and regulated professionals before making decisions.

No Liability: While reasonable efforts have been made to ensure accuracy, no warranty is given regarding the completeness, accuracy, or currency of the information. Readers use this information entirely at their own risk.

The gap between a 6% yield and a 9% yield often comes down to a property check most landlords skip.

Three landlords bought the same £180,000 flat in Manchester. Each conducted a different level of property check before buying. Same street, same spec. After 12 months:

  • Landlord A: 4.2% yield, empty 3 months, problem tenants, barely covers mortgage
  • Landlord B: 6.1% yield, fully let, decent tenants, small profit
  • Landlord C: 8.7% yield, no voids, corporate tenants on 3-year deal, builds £8,400/year

The flats were the same. The approach was not. Landlord A treated it as easy money (it is not). Landlord B did basic checks. Landlord C used a 47-point checklist that turned a weak deal into a strong one.

Quick Viability Test

Answer these three questions:

  1. Gross yield (yearly rent ÷ price)? Aim for 6%+
  2. Rental demand (time to let, tenant type)? Should let in under 3 weeks
  3. All-in costs (mortgage, repairs, voids, legal)? Should leave 20%+ profit

If you cannot answer all three, you are not ready to invest.

Key point: Buy-to-let is not passive income. It means 150+ legal duties, tenant issues, repairs, and market risk. It only gets easier after years of learning.

The 47-Point Buy-to-Let Checklist

SECTION 1: Money Matters

Purchase Costs:

  • [ ] Purchase price £______ (aim 25% below area average)
  • [ ] Stamp duty £______ (3% on first £250k, 5% on £250k-£925k, 8% above)
  • [ ] Legal fees £______ (£850-£1,500)
  • [ ] Survey £______ (£400-£650)
  • [ ] Repairs budget £______ (if needed, £8,000-£15,000 typical)
  • [ ] Total investment £______

Mortgage:

  • [ ] Deposit: £______ (usually 25%, some lenders 20%)
  • [ ] Mortgage amount: £______ (tested at 5.5%)
  • [ ] Interest rate: ___% (BTL rates are often higher than a standard first mortgage uk)
  • [ ] Monthly payment: £______
  • [ ] Type: Interest-only or repayment?

Rent:

  • [ ] Check rent on Rightmove, Zoopla, OpenRent
  • [ ] Monthly rent: £______ (be careful not to aim too high)
  • [ ] Yearly rent: £______
  • [ ] Agent fees: 10-15% (£______/year) or self-manage
  • [ ] Voids: Budget 1–2 months empty = £______ loss

Running Costs:

  • [ ] Buildings insurance: £______ (£250-£500/year)
  • [ ] Contents insurance: £______ (£150-£300/year)
  • [ ] Gas safety cert: £______ (£60-£100/year)
  • [ ] Electrical check: £______ (£150-£300 every 5 years)
  • [ ] EPC: £______ (£60-£120, lasts 10 years)
  • [ ] Repairs: 10% of rent (£______/year)
  • [ ] Accountant: £______ (£300-£800/year)
  • [ ] Ground rent (leasehold): £______
  • [ ] Service charge (flats): £______

Yield:

  • [ ] Gross yield: (Yearly rent ÷ Price) × 100 = ____%
  • [ ] Net yield: ((Rent - all costs) ÷ Total spent) × 100 = ____%
  • [ ] Target: 6%+ net yield

Key point: Many people work out gross yield (looks great at 7-8%) and forget the costs. After mortgage, repairs, voids, and fees, that 8% gross becomes 2.3% net - a loss after tax.

SECTION 2: Property Check Essentials

Location:

  • [ ] Transport links (bus/train within 10-min walk)
  • [ ] Jobs nearby (offices, factories, hospitals, universities)
  • [ ] Shops within 15 minutes
  • [ ] Schools (check Ofsted if targeting families)
  • [ ] Crime rate below average (check Police.uk)
  • [ ] Properties let within 3 weeks

Property Type:

  • [ ] 2-bed flats/houses (most demand, fastest to let)
  • [ ] 3-bed houses (good for families, higher rent)
  • [ ] Avoid: 1-bed (high competition), 4+ beds (niche market, longer voids)

Property Check - Condition:

  • [ ] Needs little work (under £3,000)
  • [ ] Neutral décor (cream walls, plain carpet - tenants prefer this)
  • [ ] Working kitchen and bathroom (clean, not fancy)
  • [ ] Double glazing
  • [ ] Central heating (gas is fine)
  • [ ] Good EPC rating (minimum E for most lets in England and Wales)

Before making an offer, understanding homebuyer survey vs building survey options helps you choose the right inspection depth for investment properties. Additionally, knowing key property red flags UK buyers should watch for protects your investment from costly structural and legal issues.

Property Check - Legal:

  • [ ] Freehold is best (no ground rent, no lease issues)
  • [ ] If leasehold: 100+ years left, ground rent under £250/year
  • [ ] No cladding issues (flats need EWS1 cert to get a mortgage)
  • [ ] Property check for knotweed, flood risk, or structural problems

SECTION 3: Legal Rules

Before Letting:

  • [ ] Gas Safety Cert (yearly, covers boiler and gas items)
  • [ ] Electrical report (every 5 years)
  • [ ] EPC (lasts 10 years; most lets need E or better)
  • [ ] Smoke alarms on each floor, working on day 1
  • [ ] CO alarms in rooms with fixed fuel appliances (not gas cookers) in England
  • [ ] Furniture meets fire rules (if furnished)
  • [ ] HMO licence (if 5+ tenants from 2+ households, £500-£1,200/year)

During Tenancy:

  • [ ] Right to Rent check in England (check tenant's right to be in UK)
  • [ ] Protect deposit within 30 days (use a govt scheme)
  • [ ] Give tenant prescribed info
  • [ ] Use standard AST tenancy agreement
  • [ ] Give How to Rent guide
  • [ ] Give gas cert before move-in
  • [ ] Give EPC

Ongoing Property Checks:

  • [ ] Gas safety check each year (£60-£100)
  • [ ] Fix repairs promptly (urgent issues fast)
  • [ ] Property check every 3–6 months
  • [ ] Electrical test every 5 years
  • [ ] Keep property liveable

Tax:

  • [ ] Register for Self Assessment
  • [ ] File tax return with rental income
  • [ ] Know mortgage interest limits (only 20% relief now)
  • [ ] Think about a limited company (different tax, ask an accountant)

SECTION 4: Picking Tenants

Good Tenant Signs:

  • [ ] Steady job (check payslips)
  • [ ] Good refs from past landlords (2+ years of renting)
  • [ ] Credit check passed (score 700+)
  • [ ] Earns 2.5x rent or more
  • [ ] No CCJs for unpaid rent
  • [ ] Non-smoker (better for property and insurance)
  • [ ] Wants 12+ months

Warning Signs:

  • [ ] Won't give references
  • [ ] Bad credit (CCJs, defaults, missed rent)
  • [ ] Moves often (every 6–12 months)
  • [ ] Vague about their job
  • [ ] Offers cash (may signal problems)

Viewing Process:

  • [ ] Use a referencing service (£20-£40 per tenant)
  • [ ] Meet tenants in person first
  • [ ] Trust your gut
  • [ ] Check employment with employer
  • [ ] Verify ID documents

Two Approaches

Approach A: Hopeful Buy with 7% gross yield. Assume 100% occupancy. Small repair budget. Manage yourself to save fees. Hope for the best.

Reality: 7% gross = 2.8% net after costs. Voids cost £1,200/month. Bad tenants need legal action (£3,000+). Skipped repairs grow into big problems. Stress: 8/10.

Approach B: Realistic Buy with 8%+ gross yield. Budget 10% voids. 10% repairs. Use an agent. Set up systems.

Reality: 8% gross = 4.7% net after costs. Voids expected and budgeted. Agent handles tenant issues. Regular repairs prevent emergencies. Stress: 3/10.

The truth: Approach A looks better on paper. Approach B works better in real life. Careful numbers mean nice surprises, not nasty shocks.

Case Study: Sophie in Birmingham

Sophie bought a 2-bed terrace in Birmingham for £165,000. She used the 47-point property check checklist. When choosing between major UK cities for investment, she reviewed our detailed Manchester vs Birmingham comparison, which helped her understand Birmingham's superior growth potential for 2025-2028:

Purchase:

  • Price: £165,000 (18% below area average)
  • Stamp duty: £6,950
  • Legal/survey: £1,200
  • Minor fixes: £2,800
  • Total: £175,950

Mortgage:

  • 25% deposit: £41,250
  • Mortgage: £123,750 at 4.8% interest-only
  • Monthly payment: £495

Rent:

  • Market rent: £925/month
  • Yearly: £11,100
  • Agent (12%): £1,332/year

Costs:

  • Mortgage: £5,940/year
  • Agent: £1,332/year
  • Insurance: £380/year
  • Gas safety: £75/year
  • Repairs (10%): £1,110/year
  • Accountant: £400/year
  • Void (1 month): £925/year
  • Total: £10,162/year

Yield:

  • Yearly profit: £938
  • Net yield: 0.5% (low)
  • Cash return on deposit: 2.3% (okay for growth play)

But: The checklist showed that Birmingham's 14.8% price growth and rising demand made growth, not yield, the real win.

  • Year 1 value: £190,390 (15.4% up)
  • Equity gain: £25,390
  • Total return: £26,328
  • True ROI on £41,250 deposit: 63.8%

The property check stopped her buying a "high-yield" property in a falling area. Instead, she bought modest-yield in a growth market - a far better move.

What Next?

The question is not if you should invest—2.65 million UK landlords show it works. The question is if you will invest wisely (47-point checklist) or blindly (guessing and hoping).

The truth: Good BTL is not about finding "great deals". It is about thorough property check processes, real number crunching, and proper management. A detailed property check is not red tape. It is what turns 2% returns into 8% returns.

Your BTL will either build wealth or drain it. The checklist is your guard against costly mistakes that seem obvious later but were hidden at the time.

Expert Advice

Before investing in BTL, check rules and speak to experts:

  • Mortgage broker (FCA-regulated) - Check at FCA Register
  • Solicitor - For legal work on the purchase
  • Accountant - For tax and rental income advice (ICAEW, ACCA, CIMA)
  • Financial adviser - For strategy and affordability
  • Surveyor (RICS) - For surveys and valuations

Key Resources:

Regulators: FCA | SRA | RICS | HMRC

Check Rules: GOV.UK | Legislation.gov.uk

Note: This article is for guidance only. It is not financial, legal, or tax advice. BTL involves risk. Rules, tax, and lending change often. Everyone's situation differs. Get advice from FCA advisers, accountants, and solicitors before investing. The author is not liable for any loss from using this content. Details were correct when published but may change.