Lettings Jargon Buster
Arrears
Rent is outstanding. Arrears may be a full amount for a rental period or in part.
AST (Assured Shorthold Tenancy)
An Assured Shorthold Tenancy is the most frequently used tenancy agreement and is also referred to as an AST.
Banker’s Draft
A banker’s draft is a more secure form of payment because it can’t bounce due to a lack of funds in your bank account. Essentially, you give the bank the cash and they give you a cheque in that amount to give to the person you’re paying. Most banks need at least 24 hours to provide a banker’s draft and may charge you a fee. You may be asked to pay your deposit and full month’s rent using a banker’s draft.
Break Clause
A break clause is a clause sometimes included in a fixed-term tenancy agreement.
Credit Search References
Before a tenancy agreement is signed, you will be referenced by your agent or landlord. The referencing includes looking into your employment history and your current landlord and checking your credit history to assess your ability to pay the rent. Green and Parry Estate Agents use a specialist referencing company to carry out these checks.
Deposit
Landlords will ask new tenants to pay a tenancy deposit to cover damage or unpaid rent. The deposit is 1 ½ month’s rent. This is held in My Deposits.
Dilapidation
Damage to a property or contents that is considered to be more than acceptable wear and tear.
Energy Performance Certificate (EPC)
All properties offered for let require Energy Performance Certificates (EPC). An EPC provides a rating of a property’s energy efficiency, running costs and environmental impact rating (carbon emissions) based on the property’s condition on a given date.
Fixtures and fittings
The contents of a rented property that may include window coverings, light fittings, carpets, kitchen units and white goods are called “fixtures and fittings”. If you are renting a furnished property, it may also include furniture.
Gas Safety Regulations
It is the landlord’s legal responsibility to ensure that a gas safety check is carried out prior to letting a property and then every year after. The check must be carried out by an authorised CORGI registered engineer and a copy of the record must also be given to the tenant.
Guarantor
A guarantor is someone who agrees to sign a tenancy agreement and in effect guarantees that they will undertake the full obligations under the tenancy agreement on the tenant’s behalf. If for some reason the tenant cannot pay the rent, the guarantor will make the payments.
House in Multiple Occupation (HMO)
Your property is an HMO if: at least 3 tenants live there, forming more than 1 household and there is a shared toilet, bathroom or kitchen facilities. All local councils must license “large HMO’s” – properties that are higher than three stories, housing five or more people from two or more households. This legislation applies to any building or part of a building that is occupied by people who do not live as a single household, that is as a single family and where they must share amenities such as a kitchen or bathroom. Bed-sits accommodation and house shares where there are no family relationships are examples of HMOs.
Initial Term
The first period of the tenancy.
Inventory
The inventory is a listing of the contents of a property. This list can include the state and condition of a property (including the garden) and can cover whether the property is clean or dirty and the state and repair of fixtures and fittings such as power points, furniture, windows etc.
At the start of the tenancy, there should be an inventory to “check in” with the tenant and then at the end of the tenancy the tenant should be “checked out”. Agents and landlords may use a third party inventory clerk to carry out the inventory.
Managing Agent
An agent or company responsible under an agency agreement for the maintenance and management of the property.
Notice Period
The period of time that a tenant or landlord must give to end the tenancy agreement.
PCM
PCM is a short-form referring to the rental amount being paid on a per calendar month basis.
Renewal
At the end of the fixed term of an Assured Shorthold Tenancy some tenants and landlords choose to renew the tenancy for another fixed term. That gives the tenant a bit more security. Landlords may also ask a tenant to sign a renewal if they want to change the terms of your tenancy agreement and that could include raising the cost of the rent.
Standing order
A standing order is an instruction to a bank to an account holder to make regular fixed payments to a particular person or company and is often used to pay rent, usually on a monthly basis. The standing order payments can be set up to finish by a particular date or will continue until cancelled by the tenant.
Statutory Obligations
Requirements and obligations of the landlord or agents acting on their behalf as set out by Acts of Parliament.
Sublet
When an existing tenant lets all or part of their home to someone else, this is known as subletting. Your tenancy agreement may say that you are not allowed to sublet or may state that you need permission from your landlord before subletting. If you sublet your property without permission your landlord may take legal action against you.
Tenancy agreement
A tenancy agreement is usually agreed and signed before a property is let out. It is a contract between a landlord and a tenant(s) that sets out the terms and conditions of their rental agreement.