Are you new to the landlord trade and need to check any unclear industry jargon? Or maybe you are a prospective tenant who isn’t quite ready to sign the papers?
We have broken down significant landlord keywords so that you have complete peace of mind if you are renting out a property, or you are moving into someone’s property.
Landlord: A person who rents out a building, accommodation or land.
Tenant(s): A person, couple or group of individuals who are inhabiting a property or land that is rented from a landlord.
Tenancy Agreement: The formal, binding and legal document between a landlord and a tenant that consists of the terms and conditions have been agreed upon. This can also be known as the Lease Agreement.
Short Let: A tenancy term that usually lasts 6 months or less.
Long Let: A tenancy term that usually lasts over 6 months.
Assured Shorthold Tenancies (AST): A very common type of tenancy. A landlord and tenant agree on the period of stay and amount of rent (this is usually short term); this amount cannot be increased during the AST.
Sub Let by Tenant: The tenant lets the property out to another tenant. Any tenant sub-let must have been approved by the landlord. A Tenancy Agreement is likely to state whether the landlord permits these sorts of sub-lets.
Sub Let by Landlord: A superior landlord gives permission for a landlord to sub-let to a tenant. A landlord may require references for the tenant, and an agreement to observe the covenants contained in the head lease. A fee may be charged for granting consent to sub-let which is the tenant’s liability. Landlord to enter any head lease information into the Tenancy Agreement, otherwise there may be a breach of contract.
Subject to Contract: A phrase used to confirm that an agreement is not yet legally binding.
Premium Tenancy: The tenant pays the full amount of rent upfront in one payment. This can also be known as a Premium Lease.
Security Deposit: A preliminary payment a landlord requires from a tenant to secure a property. The Security Deposit is to be paid at the start of the tenancy, once the tenant and landlord have both accepted the terms and conditions of the Tenancy Agreement along with an Inventory. When the contract ends, any damages the tenant has caused will result in deductions from the Security Deposit, so that the landlord can cover costs.
Holding Deposit: An initial deposit a tenant puts down on a property that they wish to reserve before signing the Tenancy Agreement. Once the agreement is signed, the holding deposit is then included as part of the Security Deposit. If the tenant is no longer moving into property and the agreement falls through, a landlord can decide to keep the holding deposit to settle the costs initiated and the inconvenience caused.
Inventory: A list of contents and items in the property that have been checked for their condition before a tenant has moved in. The landlord will check the Inventory at the end of a Tenancy Agreement to ensure that the contents have been looked after by the tenant.
Tenancy Deposit Protection Scheme (TDPS): All deposits being paid by a tenant for an Assured Short-Hold Tenancy must be registered with a recognised deposit protection scheme within 14 days of payment.
Contents Insurance: Cover for anything inside the property; this does not include the building itself. For further protection and peace of mind, 24|7 Home Rescue provide TV Warranties and Appliance Warranties.
Break Clause: This allows the tenant or landlord the right to terminate a Tenancy Agreement before the official end date of the contract. This will very likely have to be a written document, involving extenuating circumstances.
Electrical Equipment (Safety) Regulations 1994: A law that requires all electrical appliances and installations to be maintained properly. Appliances additionally have to be checked regularly by a qualified and registered engineer.
Portable Appliance Test (PAT): Performed in the UK, electrical appliances have to be routinely checked for safety. This is also known as In-service Inspection and Testing of Electrical Equipment.
Gas Safety Certificate: A record that is legally mandatory for all UK rental properties that have gas appliance. This is also known as a CP12 Certificate. Part of the Gas Safety Regulations Act 1998 act; regulations that regard installation of appliances using Natural Gas and Liquefied Petroleum Gas (LPG).
One of our qualified Gas Safe Registered engineers can come to your property every year to check your appliances, provide you with valuable safety information and issue you a CP12 certificate.
Energy Performance Certificate: A legal requirement that a landlord must obtain before they place their property on the market. An accredited Energy Assessor evaluates the energy efficiency of a property and generates an EPC; this is likely measured on a scale from A-G.
Furniture and Furnishing Regulations Amendment 1993: A set of rules that require all household upholstered furniture, furnishings and other products to qualify as being compliant.
If you are still in doubt about signing a tenancy agreement or leasing a property, seek professional assistance.