An increasing number of landlords are inquiring about rental guarantee policies as the current economic climate begins to affect buy-to-let investors, it has emerged.

According to a report by the Independent, more and more landlords are becoming concerned as rising unemployment and financial problems threaten the ability of tenants to pay their rent.

Suzanne Whittingham of insurance group Endsleigh told the newspaper that the firm had seen a "marked growth"in the number of landlords seeking rental guarantee insurance, with interest expected to rise further next year.

The report also suggests that landlords could take a number of further steps to protect their interests, including forging a positive relationship with tenants to ensure that any problems are dealt with amicably.

Alternatively, they might consider changing their tenant base to combat the current rise in unemployment, claims David Whittaker, managing director at buy-to-let broker Mortgages For Business.

"It could be students' landlords who now find themselves in the most reliable market,"he said.

This comes after the Association of Residential Lettings Agents advised landlords to take "elementary precautions"as more tenants face a loss of income due to being made redundant.ADNFCR-2002-ID-18931772-ADNFCR

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