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If you are a landlord who is currently worried about the future of your rental income in this climate of rising unemployment, there are a raft of measures you can take to allay these fears, according to estate agent Young London.

The first thing they advise you to do if you are a worrying landlord is to maintain a good relationship with your tenant. If the worst does happen and your tenant loses their job, you need to know about it as soon as possible so as to try and come to an arrangement. Young London says the same time it makes sense to keep an eye on your tenant – make sure the rent is being paid on time and if isn't, ask why sooner rather than later. If they have been made unemployed then paying their rent may not be high up on their list of priorities when faced with credit card bills and other debts.

Young London also advises you, as a landlord in this tough climate, to look at taking out insurance cover.
Insurance cover is available to guarantee your rental income and legal expenses, and will act as a safety net, should your tenant lose their job. For a regular monthly premium, these policies can be taken out when signing up a new tenant.

Your tenant may be eligible for Local Housing Allowance, according to Young London. It says landlords should speak to their local council to see if it's an applicable option for the tenancy – and ensure they familiarise themselves with the additional responsibilities it may entail. This may seem like a lot of effort but it could mean you keep the tenant until the end of the tenancy agreement.

Also, if you are concerned, allow your tenant to break their tenancy agreement. If the rent isn't being paid and your local letting market is fairly buoyant it may be worth allowing your tenant to leave so that you can let the property to a paying tenant. That might mean writing off any rental arrears but in the long run could mean you waste less time and money, and could avoid a costly legal bill.

Legal action can be expensive, time consuming and should always only be the last resort. However, you need to be prepared for all eventualities. As soon as your tenant goes into arrears make sure you speak to your local landlords' association or seek specialist legal advice to explore all the options available.

SOURCE: Young London, 28/04/09

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