Risk management essential for landlords, says expert

Buy-to-let landlords need to manage their risks when looking ahead to 2009, it has been advised.

A spokesperson for the Association of Residential Lettings Agents said the year ahead does contain a significant level of risk, not least because some tenants who provide the income for landlords may find themselves becoming redundant because of the recession.

In addition to measures such as ensuring everything is correct and proper with tenancy agreements, taking out insurance against loss of income from rent is vital, he stated, commenting: "There are ways that landlords can manage that risk and the most important way is to insure themselves."

Another important measure the spokesman mentioned was for landlords to credit check any new tenants to ensure they are reliable, something he remarked is an important action to undertake "regardless" of the state of the economy.

Last month saw the average monthly rent in the UK rise to £665 from October's figure of £527, Rentright's Residential Rental Price Index indicated.