The property world is full of words and expressions that may be unfamiliar to anyone who is not regularly letting or renting a home.
This guide will help to shed light on what they all mean.
A landlord described as absent is one who cannot be contacted. If the lessees wish to create a Right To Manage Company but are unable to contact the landlord, they are free to make a legal application to acquire the right to manage.
A payment which is charged to cover the costs of processing a property rental application. This is paid by the tenant and will be taken from the initial monies once the tenancy starts.
A payment which is charged to cover the costs of drawing up a tenancy agreement. This is usually shared between the landlord and tenant.
The Association of Residential Letting Agents, the UK’s foremost professional body for letting agents.
Assured Shorthold Tenancy (AST)
A widely used rental agreement where the tenant is an individual and net rent does not exceed £25,000 a year. It covers a fixed period, so both parties know the date the property will be vacated.
A clause sometimes agreed between the landlord and tenant to be inserted in a fixed term agreement, typically if the initial fixed term is for a year or more. A break clause will usually allow either landlord or tenant to give written notice after a particular date or period of the tenancy in order to end the tenancy earlier than the original fixed term.
Credit Search References
References requested for a tenant applying to take up rented accommodation. Many agents and individual landlords use external companies who will contact the applicant’s employer, landlord and check the tenant’s credit history, providing a report on their financial suitability to rent.
A monetary sum held by the landlord or agent for security against damage to a property or a breach of the tenancy terms. This is usually the equivalent to six weeks’ rent but may vary. If the deposit is for an Assured Shorthold Tenancy (AST), then it must be protected by one of the approved tenancy deposit protection schemes.
Items that have been damaged during a tenancy. The tenant is usually responsible for the cost of repair or replacement.
The Energy Performance Certificate (EPC) shows the energy efficiency and carbon emissions of a property and gives an indication of the fuel bills. It is displayed as two graphs, the energy efficiency and environmental impact of the property. Each is graded from A (the best) to G (the worst).
sale is binding and no terms may be altered.
Fixtures and Fittings
Items usually provided in a letting that may include curtains, carpets, blinds, light fittings, kitchen units and appliances. In some cases it may also include furniture. It is advisable to check what is provided and not to assume that items will be provided.
Gas Safety Record
A certificate that states all gas appliances, pipework and flues are safe. It is a legal requirement for all landlords and must be provided every year by a Gas Safe registered engineer after a safety check.
A list of the contents of a rental property. The inventory will note the condition of items and will form the basis of a dilapidation report at the end of the tenancy. It often includes photographs of specific items and existing damage/defects.
The legal document governing the occupation by the tenant of a premises for a specific length of time. At the end of the period the property reverts to the owner.
Buildings of special architectural or historic interest. A listed building may carry certain obligations and restrictions governing its use, repair, and maintenance.
Maintenance Charge or Service Charge
Many leasehold properties (especially flats) are subject to such a charge which pays for items such as the insurance and maintenance of the building.
A flat with its own private entrance.
Multiple Agent Instructions
Where more than one letting agency firm is instructed by a landlord to offer a property to rent.
The Property Ombudsman
The Property Ombudsman offers a free and independent service for resolving disputes between sales and letting agents, which are members of The Property Ombudsman, and buyers/sellers of residential property in the UK.
Where only one letting agency firm is instructed by a landlord to offer a property to rent.
Possession of a property by a tenant under the terms of a lease.
The legal agreement governing the occupation of a property by a tenant.
Tenancy Deposit Scheme (TDS)
An insurance-based scheme run by The Dispute Service Ltd. for the protection of tenancy deposits and the resolution of disputes between landlords, agents and tenants concerning the return of deposits at the end of a tenancy. It is one of three schemes approved for tenancy deposit protection.
The person who has temporary possession of a property under a lease or tenancy agreement.