First things first, never invest from a position of weakness. If you're considering buying a buy-to-let property and you're already overstretched with your own mortgage, think again. On a tight budget an extended rental void can spell disaster.

If you're going to become a buy-to-let investor, don't jump in head first and put all your money in this one source of investment. It's worthwhile having some exposure to other asset classes, especially ones that are more liquid, such as shares.

The ideal property investment is one that is 'cash flow positive', in other words where the rental income generates a surplus over the mortgage repayment. This may not be possible to achieve immediately so you may have to top up the rental income yourself to meet the mortgage repayments. Over a few years, however, if you're till topping up, it's time to reconsider the investment.

When buying a buy-to-let property in this current market you have to be prepared to think of it as a long-term investment.

With prices falling rather than rising, you can no longer rely on the potential of capital appreciation to compensate for any shortfall in rent. You will need spare cash to cover all eventualities, including money for fit-out, stamp duty, legal fees and letting agency fees.

How will you finance your buy-to-let property? With buy-to-let mortgages you repay both principle and interest over the term.

With interest-only mortgages you only pay the interest portion of the loan, so monthly repayments are cheaper. This is attractive in the short term but at some stage the principal will need to be paid off.

You could release equity on your home but this can be risky, as the loan is secured against the value of your home rather than the new property. If you have large amounts of money saved in a pension scheme you could release part of the funds to invest in property.

There are very strict rules as to how this can be done and you should consult your pension advisor for advice first.

When buying your buy-to-let property remember that it is primarily a business decision. A common mistake is to buy a property they would like to live in. A property should be judged coldly as an earnings vehicle . . . you're looking to make maximum return for your property on rental yield and capital appreciation.

Buy the right property for the market you want to appeal to and decorate the property accordingly. Families will want houses with gardens rather than apartments. Professsionals are more interested in proximity to social and recreational facilities.

Good transport links and parking is also a must. A sociable openplan layout will attract, as will a second bathroom. For the student market, affordability is key. Proximity to college is also a must.

When you have bought your property you will need to decide if you're going to fit out the property or not and how much to budget for this. Most rental units are fully furnished. You'll also need to decide if you're going to manage the letting yourself or appoint a letting agent. The latter costs more but is less headache. They'll advertise the property, collect rent and look after maintenance.

The Irish rental market is seasonal, September to November and January to June. Where possible it's good to find new tenants during these periods. Encourage tenants not to move during these periods by offering a discount during the holidays. Also you could give the tenants a cash incentive for finding new tenants themselves among their circle of friends.

Finally, remember tenants and landlords both have rights and responsibilities that must be adhered to. Tenants must be given a rent book and landlords must register their property with the Private Residential Tenancies Board. For more details visit www. citizensinformation. ie

From 'Buying to Let: A Guide to Buying Property for the Rental Market' by Frank Dillon in association with EBS Building Society. For your free guide email info@mail. ebs. ie