Buy-to-let property company

Tenants pay rent. Your deposit comes from you or your investors, and a buy-to-let mortgage usually covers the rest.

Monthly rent minus mortgage interest, insurance, repairs, agent fees and tax. Any profit on a later sale is a second possible return, but values can fall as well as rise.

• Comfortable with numbers and budgeting
• Organised with paperwork and deadlines
• Calm when dealing with tenants and repairs

• Tax treatment of a company versus owning in your own name, including higher stamp duty rates on company purchases, so get advice first
• Landlord legal duties such as gas and electrical safety, deposit protection, energy ratings and right to rent checks, which vary across England, Scotland, Wales and Northern Ireland
• Landlord registration or licensing, which some areas require, so check with your council
• Void months, repair bills and interest rate rises that can wipe out your profit
• Landlord insurance and the mortgage lender's rules on lending to companies

Startup costs are typically around £25,000 to £90,000, depending on the property price and the deposit you put in. A buy-to-let mortgage usually covers the rest, so check the lender's rules on lending to companies.

Monthly revenue from rent is typically around £600 to £2,500, depending on the properties and the rents you charge. Void months, repair bills and interest rate rises can wipe out your profit.

Check the tax treatment of a company versus owning in your own name, including higher stamp duty rates, and get advice first. Also check landlord duties, which vary across the UK, any landlord registration or licensing with your council, and insurance.