Buy-to-let is the term used when you buy a property, usually with a mortgage, and rent it out.
The idea is that the rent paid by your tenants will cover the mortgage payments, fees, insurance and other outgoings and perhaps provide a little extra cash on top to help you cover additional costs and maintenance or, in the best scenario, boost your income.
Meanwhile, you own a property which may grow in value and so could make a great investment.
Investing in a buy-to-let property has become more and more popular in recent years as people look to make money from the rising property market, rather than putting their spare cash in the bank.
Demand for homes to rent remains strong as first-time buyers need time to save up the deposit to buy their own property.
Think long-term
Many people are investing in a buy-to-let property as a pension - the monthly rent may be a useful supplement to other retirement income or the property could be sold and the proceeds used as a nest-egg.
Whatever your reasons for buying-to-let, it's important to remember that it is a medium- to long-term venture and not a way to get rich quick.
As the buy-to-let market has grown, mortgage lenders have created more opportunities to borrow through specially-designed loans and rates.
Most lenders will expect you to have done your homework and will look for the gross rent to cover at least 130% of your mortgage payments.
Next article in this section: How to tell whether buy-to-let is right for you
Useful links
Compare rates on buy-to-let mortgages
The 10 best places to invest in buy-to-let
How one man turned £500 into £10m
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