Property Types
Buy-to-Let (BTL)
Property purchased specifically to rent out
Full Definition
Buy-to-let refers to purchasing a property with the intention of renting it to tenants rather than living in it. BTL mortgages are specifically designed for this purpose and typically require larger deposits (25%+) and charge higher interest rates than residential mortgages. The landlord receives rental income and potentially benefits from capital appreciation.
Related Terms
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HMO (House in Multiple Occupation)
Property rented to 3+ unrelated tenants sharing facilities
Single Let
Property rented to one household on one tenancy
BRRR (Buy, Refurbish, Refinance, Rent)
Strategy to recycle capital through forced appreciation
Serviced Accommodation (SA)
Short-term furnished rentals like Airbnb
Property Flipping
Buying, renovating, and quickly selling for profit