Letting property can be risky. You only need one bad tenant who stays for six months without paying any rent and then disappears, leaving the house in need of hundreds of pounds worth of redecoration to bring it back into a decent condition, and your profits for that year - and probably the next - could be gone.
You should take out property insurance, which would cover damage, but the rent is not insurable. If you employ an agent and they fail to check references properly, you could claim negligence. You can also get legal costs insurance to cover your costs if you have to sue a tenant.
No matter what happens with your tenant, you will still have to go on playing the mortgage and the other outgoings on the property. If you cannot keep up the mortgage payments, then your lender will have the right to take possession of the property and sell it in order to recover their loan and interest.
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