ARLA Buy-to-Let Charter

These are important guidelines for buyers, lenders and agents.

An Investor should:

plan to be a Buy-to-Let Landlord over the medium to long-term as it is an investment that produces a variable combination of rental yield and capital appreciation.
make an objective business decision when purchasing a property - you don't have to like it personally, just be sure it is suitable for the local rental market.
be aware that the rental market is fast moving with fluctuating supply and demand. This can influence achievable rental levels and occupancy rates.
take informed advice from professional Letting Agents and specialised financial advisers from the beginning.

conduct a thorough analysis of affordability and not lend more than you can afford to repay.
undertake a professional assessment of the security and the reasonableness of the forecast rental income.
provide clear information on Buy-to-Let products and services and on your obligations as a borrower.
explain what to do if you get into difficulties with mortgage payments.

demonstrate a comprehensive understanding of the legalities, regulations and obligations, which apply to Landlords, Tenants and Agents.
provide realistic and up to date guidance on supply and demand based on a detailed local knowledge of the market.
hold Professional Indemnity Insurance, separate Client Accounts and a Client Money Bonding scheme and employ trained, qualified staff.
have access to a complaints process over the service standards of letting agents and to procedures for resolving disputes over deposits between Landlords and Tenants.