Landlords take a "gamble" if they do not take out rent protection insurance, it has been claimed.
Michael Portman, the managing director of Let Insurance Services, said that even if an owner has a good tenant, there is no guarantee that the occupant will keep their job in the current economic climate and be able to make rent payments.
It helps to obtain a landlord's employer reference and a credit check at the beginning of the tenancy, he noted, but added that taking out insurance can offer extra protection.
"There is no guarantee that that tenant will have his job in three or six months' time and will be able to afford to pay the rent," he remarked.
This view is shared by the Association of Residential Lettings Agents (Arla).
They note that many landlords face the possibility of tenants being unable to pay their rent, saying that even reliable occupants "may not know what's around the corner" in times of recession.
"There are ways that landlords can manage that risk and the most important way is to insure themselves," Arla remarked.
They also recommended that buy to let investors should always carry out credit checks on potential tenants whether there is an economic downturn or not.
Recent figures from the National Landlords Association show that 71 per cent of landlords expect rent arrears to rise next year.
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