With house prices and rental income falling and credit tightening, some landlords may feel it is time to hand back the keys to the bank.

Certainly, the current climate has meant the smaller private investor and wannabe private investor are now experiencing difficulties in making returns match their mortgage repayments.

Although most experts agree that we are in for a difficult ride, many analysts argue that most investors will hang on to their portfolios. They point out that even if prices fall by six per cent over the next 18 months, investors who bought in 2002 would still be sitting on a gain of 50 per cent.

Rather than panic, specialist letting and property management agent Ashton Burkinshaw recommends it is a good time to check your buy-to-let portfolio to see whether you are making the most of it.

Here are some things you can do to make buy-to-let pay:

Are you charging market rent? Because demand for rented properties is on the increase, with average rents across the country at their highest for a decade, you may be able to increase the rent (within the constraints of your tenancy agreement of course), especially if you have redecorated and improved the property.

Claim all your tax allowances. Make sure you are claiming tax relief against rental income for most of your running expenses, including repairs, agents’ fees and utility bills you pay, as well as a general allowance of 10 per cent of rental income for wear and tear.

Make the most of mortgage tax relief. To reduce your tax bill on rental income make sure that you offset mortgage interest against this income. You may also get more relief if you re-mortgage your buy to let property if you are able to.

Make sure you shop around for the best mortgage deals. And decide whether it would be best to have one with percentage fees or high fixed rates. Depending on the size on your mortgage it might be worth paying a seemingly high fee rather than one that is calculated as a percentage of the loan.

Look out for a bargain. Falling property prices in some areas have resulted in lower than market values, particularly on repossessed properties meaning that there are good buying opportunities around.

Cut your losses and get rid of underperforming assets. Be ruthless and sell any property that is not performing well and has struggled for months.

Use a reputable lettings agency.A key component of any landlord keeping their financial head above water is to hire a good lettings agency. A reputable agent is essential for checking prospective tenant’s references.