Tips and advice - Landlord insurance

1. Obtain as much information from the incoming tenant(s) as you possibly can before even considering granting them a tenancy. Keeping a standard form, including last 3 years' residences, date of birth, NI number and next of kin details, can help ensure your records are reliable and relevant. You should also check their identity.

2. Take references, in particular, from your new tenant's employer, their bank and at least one of their former landlords. Double check these, where possible, as forgeries are increasingly common. You should also get a report from a credit reference agency and copies of a driving licence, passport or other form of identification.

3. Don't be too quick to dismiss any 'gut feelings' you have about a tenant. Take your time to consider what it is that is making you feel this way and set up a second meeting in a public place to discuss any concerns you have.

4. Never hand over the keys until you have received the first month's rent. Make sure you have allowed time for the funds to clear in your bank, including the entirety of any deposit you have requested. If the tenant requires a local authority bond/guarantee, check the telephone number against a directory or web site, then confirm with the relevant authority.

5. Ensure that the tenant signs a recognised tenancy agreement. If you are unsure about what to include, templates can be obtained online. You may wish to take legal advice before using a template. You also may find it useful to include an inventory of the fixtures and fittings within the let property at the time of the agreement being signed. Don't forget to record a brief description of each item's condition. This may seem arduous, but it could provide reliable evidence in the event of a dispute.

6. Do not grant an initial fixed term agreement longer than six months unless you know the tenant well. If a serious problem were to occur during a longer contract, you may have to wait longer than you would like to evict the tenant. You can always grant a longer term at the end of the first 6 months.

7. If you are letting to a tenant who is in receipt of Housing Benefit, before you hand over the keys, make sure that they sign a letter of authority to the local Housing Benefit office giving permission for you to access information about their housing benefit application. The tenant may be able to get their rent paid to you via a Credit Union account. Sometimes the housing allowance can be ring-fenced to protect it so that it can only be used for rent.

8. Wherever possible, ensure the utility bill accounts are in the names of the tenants. If a tenant were to default on payment for a bill in your name, at minimum, your credit rating could be affected, but worse, the supply could be cut off, with a fee chargeable for reinstallation. A court summons could even be issued, putting you at risk of a County Court Judgment.

9. Obtain a signed standing order form before handing over the keys. Printing copies of your own standard bank instruction form that the tenant can complete will expedite this process.

10. Review your landlord/buy to let insurance policy to ensure that it covers everything that you expect it to and provides a wide range of solutions for disputes.