With buy-to-let mortgage lending hitting the highest level in five years, landlords entering the industry for the first time are being advised to do their homework.

Around 40,000 mortgages, worth £5.1 billion - up 19 per cent by volume and 31 per cent by value on this time last year – were approved for buy-to-let investors in the second quarter of 2013, according to the Council of Mortgage Lenders. Many of these investors are new to the buy-to-let market and have chosen to put their money into property for different reasons. But the Association of Residential Letting Agents (ARLA) says they all need the advice of professional lettings agents to avoid pitfalls.

“With more landlords entering the industry, less experienced individuals need to ensure they have thoroughly researched and fully understand the risks and responsibilities,” said Susan Fitz-Gibbon, president of ARLA.

A recent YouGov SixthSense Buy-to-Let report suggests these buy-to-let novices fall into three categories: Investors, Good Parents and Reluctant Landlords. Over half of the Investors, who represent 76 per cent of all landlords, see their property as a short-term proposition capital-ising on low interest rates. Reluctant Landlords (28 per cent) are homeowners forced to rent because they couldn’t sell. While Good Parents (29 per cent) want to provide support or a financial legacy for their children.

Richard Bond, lettings manager of Leaders in Epsom, said he and his colleagues had been advising a lot of new buy-to-let landlords locally. He said: “We have seen a number of reluctant landlords who own larger family homes, which in the slow sales market are not achieving the price they need. Their best option has then been to let the property while they go on to rent or buy elsewhere.

“We have also seen an increase in the number of first-time property investors who have had money tied up in other things such as shares and bonds. “Many of them are buying properties for ‘cash’, but still need to ensure they buy the right property for the area for the best rental and longer term capital growth returns.”

ARLA offers these tips for all new buy-to-let landlords: • Do your sums, factor in all the costs and be realistic about the rents you can achieve; • Factor in void periods – when the property lies empty between tenants and attracts no income; • Talk to your local ARLA agent to ensure you match your property with the needs of tenants; • Aim at a specific market, whether it’s students, young professionals, corporate or families.

• Keep up-to-date with future rental hot spots.