Factors such as keeping properties profitable and ensuring that they are safe for tenants are high on the list of priorities for investors as they look to benefit from the lettings industry.
And given that there are a wide range of unexpected events that may occur throughout a tenancy - be it malicious damage to a property or a loss of rental payments - one expert believes that comprehensive landlord insurance policies are vital for protecting any investments.
David Lawrenson, private rented sector expert at LettingFocus.com, said: "It is important to make sure that landlords have the correct level of cover.
"It is going to be a more thorough level of cover than the standard home insurance, although not necessarily that much more expensive."
Indeed, considering that standard home insurance policies are essentially void once a homeowner lets their property out to tenants, deals that are specifically designed for landlords appear to be of great importance when it comes to guarding against unforeseen financial costs.
Mr Lawrenson's emphasis on the need for effective insurance follows a survey conducted by Paragon Mortgages that found 20 per cent of landlords are planning on increasing their number of assets in the next year.
With the average size of a property portfolio in the first quarter of 2012 being 10.8, those who do let their holdings to tenants will need to safeguard all of their properties as a means to avoid unexpected damage leaving them having to foot extensive financial bills.
Once landlords have taken the necessary steps to secure the correct insurance policies, it appears that high levels of tenant demand mean they should have little trouble trying to find people to fill their tenancies.
"Whilst landlords are still benefitting from attractive market conditions, there is still a long way to go to meet the increasingly high level of tenant demand," said John Heron, director of Paragon Mortgages.