In addition to the official figures on unemployment, the National Landlords Association (NLA) has conducted research showing that , despite low interest rates and a perceived improvement in the rental sector, nearly three quarters of landlords had experienced rental arrears during their respective careers.

We are not out the woods with the economy just yet: The Bank of England has indicated recently that it expects rates to remain low going into 2010. The small positive signs that we have seen in the housing market will not outweigh the depressing effect of continued job losses.

With unemployment reaching 2.47 million people in the three months to August, landlords with buy to let mortgages are being warned to take out insurance to protect themselves from rent arrears. Office for National Statistics data shows that the number of those without jobs in the UK grew by 88,000 from May – and the NLA has indicated that now is a good time for property professionals to consider covering their income.

But, how to do that?!  What landlords have to do when, eventually, realise they could protect themselves against rental arrears?! Nowadays, taking care of your money could become a rocket science job.

So, it is wise for the landlords to safeguard their rental income.

A rent guarantee insurance is a way for landlords to minimise the risk from loss of rent. An insurance covering legal expenses and, hopefully, providing also a dedicated 24-hour advisory service, could offer you much needed piece of mind.

Landlords are generally being quite cautious at this current time and are focusing on keeping hold of their tenants rather than thinking about raising rents considerably.

Don’t forget the importance of also taking full references and making checks at the outset of a tenancy. Thanks to redundancy and unemployment many tenants are still facing financial pressures, and some of they are struggling to pay their rent.

Keep in touch with your tenants it is a wise step to follow, too, because lots of problems should arise during the tenancy. If the tenants feel they can come to you if they are facing difficulties, you may be able to come to an arrangement before rental arrears become more serious.