There’s a number of ways to make real estate work for you and one of the most enticing can be letting. With economic conditions as they are, some young professionals and smaller families are finding it difficult to get on the property ladder for the first time and are looking to rent.

House prices are low but first time buyers can’t get a mortgage. If you already own a property and have equity and a strong credit rating you could bag a barging of a second home and make money renting it out.

The beauty of letting out property is that, if you’re lucky, it stands to make you money in the long term and could still be good for your cash flow in the short run. It’s possible to take out a mortgage, purchase your real estate and let it out to your tenants. Your tenants’ then pay you rent which can cover your mortgage repayment and might even provide you with some income in the short run.

Your property can still be a profitable piece of real estate and you can sell it on at your leisure. It’s possible to keep a buy-to-let property (or a strong portfolio of properties) for a number of years and it is also equally likely that it could be a strong investment after just one or two years. If the market is right, it’s easy enough to sell up.

Of course, letting isn’t totally cost free: you’ll have to factor in the cost of maintaining and cleaning your property. It’s also worth considering how you will fund your property if you are unable to find tenants for a period; sometimes tenants can come and go sporadically and the market can fluctuate. Aside from the financial risks, there is also a risk that your tenants might not treat your property quite as you’d like; its well worth taking out landlord insurance as a precaution against you incurring any damages.

However, if you keep everything well maintained and ensure you have a bit of cash in the bank for that potential rainy day, letting property is a great way of making your real estate and your money work really hard for you.