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First-time landlords looking to make a profit by renting out a second property or holiday home should take care they are covered in case any legal trouble arises with their tenants, according to a price comparison site.

Steve Sweeny, moneysupermarket.com's head of home and motor insurance, asserted that landlords need to make sure they seek advice and do their research before letting a property - especially for the first time.

Taking out a landlord insurance policy to cover unpaid rent and property damage is a wise idea, he said - although an even more comprehensive policy will also cover the cost of legal expenses in the event of repossession or tenant default.

"If things go badly wrong and legal proceedings commence, the associated cost can be hefty," he said. "I advise insuring yourself against these circumstances before they arise - it is always better to be prepared."

Smartlandlord.co.uk recently advised landlords to take particular care when carrying out reference checks for a prospective tenant, as people may be more tempted to lie about their credit history during times of recession.

02/06/2009 17:19