How to compare a buy-to-let deal before you commit
A practical framework for looking beyond headline yield and comparing the cash, risk, and operating assumptions behind a rental property.
A headline yield is a useful starting point, but it is not a decision. Compare properties on the same assumptions: rent, voids, management costs, finance costs, upfront fees, and the cash you will actually put into the deal.
Start with the property’s income after realistic void and agent allowances. Then separate operating costs from mortgage interest so you can see both the asset’s performance and the cash flow created by your financing choice.
Finally, test the assumptions that are most likely to move. A slightly lower rent, a longer void, or a higher rate can change the order of two otherwise similar opportunities.