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the same way as you would when checking your own household accounts. As a general rule in the UK, tenants have to pay for the utilities and council tax and contents insurance for their own belongings but you will still need to pay for all repairs and maintenance and buildings insurance and safety checks. Look before you leap with regards to your financial arrangements and you will find that investment in real estate can be both rewarding and lucrative in the long term although you must be prepared to put in a tremendous amount in time, energy and money before you reach that stage.

Many home owners, unable to sell their own homes in today's market have had no choice but to let them out instead in order to maintain their mobility in their choosen career. In becoming reluctant landlords they may not be aware of the stringent rules they will be required by law to adhere to. In the UK, all rental properties must have regular checks carried out on the gas and electrical installations in order to protect the health and safety of the tenant. Be wary if you become one of these accidental landlords.The safety rules are not mandatory on your own home whilst you live there but they will apply when you let it to someone else. Basically this means if your home catches fire and your own family lose their lives as a result, no one will be taken to task over it but if this were to happen to another family who rented your home, there could be a hefty fine or even a prison sentence for non-compliance with the safety standards. Rules aside, I personally feel that safety should always be paramount whenever property is concerned; a damaged house can be restored but lost lives can never be replaced.

Legislation regarding rental property is constantly changing and can be a minefield for novice investors. Whereas landlords of long standing will be used to all the necessary paperwork, as a newcomer you will need to ensure you have all the relevant sources of information to hand before letting your first property. Not only will you need to look before you leap before taking the first steps in real estate investment but you will need to keep a constant check on the ever changing rules and regulations. Any reputable letting agent will have information on all aspects of letting residential property and will help with the obligations you need to meet.

When letting property, you are required to keep regular accounts of expenditure. Apart from balancing your books for your own records you will have to keep up to date accounts for tax purposes. Looking before you leap could prevent you from making serious financial blunders. Research what similar properties are renting for and selling for in your chosen area and work out the average rent you could realistically expect to charge. Will there be money left over for repairs and maintenance? Or are you prepared to meet some of these costs out of your own pocket? All this needs to be taken into consideration before any long-term commitments are cut in stone. Looking before you leap is a good rule to adhere to whenever property is concerned. It is always prudent to be wary but don't be so overly cautious that you miss out on a good investment purchase because someone else has beaten you to it.

Now is the time to buy. Mortgage interest has dropped to an all time low and property prices have fallen to a more affordable level. Reasonable finance deals are gradually returning and this looks set to improve the housing market overall. Low interest rates mean that cash investment is providing hardly any worthwhile return so there has never been a better time to invest in property if you equip yourself with the necessary information and look before you leap.

Learn more about this author, Stella Kaye.
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