You're desperate to move, you can't sell your house, so you decide to let instead. Many reluctant landlords who can't face the prospect of finding a plumber to fix a leak on a Sunday afternoon choose to instruct a lettings agent, who will find suitable tenants at an average cost of 10 per cent of the rental income and manage the property for you at an additional average cost of 5per cent. Reluctant landlords who happen to be investment bankers may wish to count their pennies and do it all themselves. Here's how:

1. You may need permission

Mortgage-holders must check with their lender before letting the property, and leaseholders must check the terms of the lease - you may have to obtain the freeholder's agreement.

2 Sort out the green tape

From next Wednesday landlords must provide tenants with an energy performance certificate (EPC) or face a £200 fine. You have to provide an EPC only when you re-let to a new tenant. The EPC gives your house an A-G rating on energy efficiency and suggests ways to improve your rating. It costs about £100 and is valid for ten years. Find an accredited domestic energy assessor at hcrregister.com

3 Make sure the property is safe

Fit a smoke alarm. Gas appliances provided by you must be checked annually by a CORGI-registered tradesman (and documentation supplied to the tenant), all electrical appliances provided by you must be safe (though no certificates are necessary) and all furniture provided by you, unless made before 1950, must meet the fire-resistance requirements as outlined in the Furniture and Furnishings (Fire) (Safety) Regulations 1988: www.opsi.gov.uk/si/si1988/Uksi_19881324_en_1

4 Arrange decent insurance

If your property is unfurnished or part-furnished you need only limited contents cover and landlord's liability. If fully furnished, take out full contents cover adequate to replace all on a new-for-old basis. As well as normal buildings cover, you should consider the following policy options: high-risk tenants, employer's liability, property owner's liability, malicious damage caused by tenants, loss of rent, and rent guarantee.

5 Set the right rent

Check local rental rates in estate agents' windows and in the free classifieds newspaper Loot and undercut the competition. Make sure that your rental income is higher than your mortgage payments.

6 Find your tenants ...

Work out to whom your property is likely to appeal and market it accordingly in Loot and on gumtree.com

7 ... and who they really are

Check your tenant's name, address, employment and credit history. The National Landlords Association runs a cheap service - £6 for members for a basic check and £20 for a thorough one, rising to £10 and £25 for non-members: nlatenantcheck.org.uk

8 Set up a shorthold tenancy...

A shorthold tenancy agreement means that you can regain possession of your property after six months, provided that you give two months' notice. Standard forms are available from law stationers and larger branches of WH Smith. Make sure you include an inventory, which must be signed by you and the tenant.

9 ...and take a hefty deposit

Take a deposit worth six weeks' rent and sign up with a compulsory protection scheme. This must be completed, and the tenant notified, within 14 days of receipt of the money. An insurance-based scheme, Tenancy Deposit Solutions (mydeposits.co.uk) allows you to hold the money yourself and thus benefit from interest. Another insurance scheme, thedis puteservice.co.uk, is aimed primarily at letting agents. The Deposit Protection Service (depositprotection.com), is a custodial scheme, where a deposit must be handed over to a third party.

10 And finally: be a good landlord

Fix things promptly. If you've ever been a tenant you will know how annoying it is when the heating breaks down in winter and the landlord won't return your calls. Save money each month for maintenance.

Case study

Martin Wardle, 32, from Gateshead, became a landlord in January when he could not sell his three-bedroom detached house and could not afford to drop the asking price. He is now letting the house to a family of four for £650 a month, which covers the mortgage but nothing else. “The most challenging aspect is that there is so much regulation, which the National Landlords Association has advised me on. It is also a drain on time. Although I haven't had many problems with the tenants, you do have to be on call.”

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