For properties you intend to hold for either income or growth, you need to find tenants to pay your holding costs. If the property is close to your home you may feel comfortable about doing that yourself, but for those of you seeking a more hands-off approach, you will need professional help.

Depending on the services you require, you will appoint either a Letting Agent or a Managing Agent. As their names suggest, a Letting Agent will find, vet, and install a suitable tenant for you (including taking a deposit), leaving you to manage the maintenance of the property and solve any problems that arise once the tenant is in place, whereas a Managing Agent will do all of the letting as well as managing the maintenance and the tenancy.

Management fees are usually calculated as a percentage of rent received, which gives the agent an incentive to chase any arrears on your behalf, whereas letting agents normally charge a percentage of the rent agreed by tenant and landlord.

However you find your tenants, you must ensure they sign an Assured Shorthold Tenancy agreement which has been professionally drawn up. Without it you will have great difficulty regaining possession of your property or terminating the tenancy, and no lender will advance mortgage funds without seeing a copy of the signed agreement.