A beginner's guide to being a landlord

On the issue of inventories, it's best to pay for a professional inventory to be done. That way, if anything goes wrong, you're covered. A typical price for a professional inventory tends to be £100 on checking in (which the landlord usually pays for), and £80 on checking out (which the tenant pays for). Another good tip is to get tenants to sign the inventory the day they move in or out. Credit checks are also a sensible move - these cost around £20 - £30 per tenant - and this way you can get an idea of the tenant's history.

When you have found a tenant, they will need to sign a tenancy agreement. You can buy a tenancy agreement from a WH Smith, or use a letting agent who will handle the legal side of it. Most people recommend seeking professional advice (be it letting agent or a solicitor) on drafting the first tenancy agreement as a ready-made one can be too general. 'The Office of Fair Trading recently brought in stringent legislation on unfair terms of tenancy agreements,' says McLeod. 'If a small part of the agreement is regarded as an unfair term, then the entire document can be struck off, leaving you liable. It can be very costly for the uninitiated.'

Landlords also need to keep fully up-to-date with safety regulations. These includes gas safety (by law you have to check this annually), electrical items and furnishings. It isn't the law that you have to get the electrical items checked out, but if a tenant is hurt because of dodgy electrics then the landlord is responsible. As for furniture, check for the fire safety label; if it doesn't have one, get rid of it. For more information on safety regulations, landlords can check their local council, who can provide them with a checklist.

In Caroline Meyer's experience (she is the letting manger for Townends Estate Agents) disputes tend to happen at the end of the tenancy, and, she points out, breach of contract often happens if landlords don't sort out their tenants' problems quickly enough. 'Often, people are unrealistic about the amount of work that is involved in being a landlord. If you go on holiday, for example, and you don't leave a contact then if there's an emergency, your tenant may well call out an emergency plumber and you are liable for all costs. Plus you've got a disgruntled tenant.'

Should the worst happen and your disgruntled tenant turns into a non-paying nightmare tenant, then getting an eviction order from court can take a long time (generally six months), meaning six months of non-payment of rent, still paying the mortgage, and hefty legal expenses. The best way to avoid a total financial black hole is to insure yourself against this - companies such as Maras (www.maras.co.uk) can pay the missing rent, and legal costs. Policies start at £50 a year.