Most poor property decisions are not made at the offer stage. They are made before it, by skipping the checks that would have shown the deal did not work. None of the five below need a survey or a solicitor. They need an afternoon and a clear head.
1. Does it work on the net number?
Take the rent, subtract every running cost you can think of, add a void allowance, then divide by the total cash you will put in. If it only works on the gross yield from the listing, it does not work. The net number is the one you live with.
2. Is there real rental demand, not just a low price?
Cheap is not the same as lettable. Check how many similar properties are currently advertised to rent in the same streets, and how long they have been listed. Strong demand looks like properties that let quickly at a consistent rent. A long list of stale adverts is a warning.
3. What does the exit and the financing really cost?
Work out the mortgage at a rate available today, not the one you are hoping for. Stress it: if the rate were a point or two higher, does the property still cover itself? If the answer is no, the deal depends on luck.
4. What is the true cost to get it rent-ready?
Walk the property, or have someone competent walk it, and price the work honestly. The expensive surprises are usually not cosmetic. They are the roof, the wiring, the boiler, damp, and anything structural. Build a contingency in, then add a little more.
5. Who is going to run it?
A buy-to-let is a small business, not a savings account. Tenants call, boilers fail, certificates expire, and the law changes. Decide before you buy whether you will run it yourself or have it managed, and put the cost of management into your net number from the start. A property that only works if you manage it for free is not really paying you.
The point of all five
Each check exists to answer one question: is this a deal, or just a property that happens to be for sale? A deal survives all five. If it falls at any of them, walk away. There is always another property. There is not always another deposit.
Common questions
What should be on a buy-to-let checklist before buying?
The numbers (gross and net yield, all-in costs, a realistic rent), the area (demand, tenant type, void risk), the property (condition, refurbishment needs, compliance), the financing (mortgage stress test and fees), and your exit. If any one of these fails, the deal is not ready.
What is the most common mistake first-time buy-to-let buyers make?
Budgeting on the gross yield and the asking rent, then being caught out by management fees, maintenance, voids and compliance costs. Always run the net number before you offer.
We run every one of these checks, and several more, before a property reaches an investor. If you would rather be handed deals that already pass, let us do the sifting.
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