UK Lettings Jargon - Explained!
Posted on 4th October 2019 at 12:47
Every day we are encountered with words or phrases we do not understand.
Fortunately, most of the time this means we learn something new! With that in mind, we'd like to use our expertise to clear up some of the jargon that you may encounter when securing a property in the UK:
Agent
Not 007 - A person who will act on behalf of the landlord who will help you to secure your property and collect payments related to deposits, rent, admin fees etc.
Arrears
When the tenant has unpaid rent. The amount unpaid becomes the arrears.
AST (Assured Shorthold Tenancy)
This gives the landlord the right to repossess the property after the tenancy has ended.
Break Clause
A clause which may be inserted into a tenancy agreement which allows the tenant (or landlord) to break the contract before the agreed end date.
Council Tax
Council tax is paid to your local council. This covers rubbish collection, block maintenance, etc.
Covenants
An agreement to refrain from actions. This can apply to landlords or tenants.
Credit Search References
A landlord or agent will usually carry out a “credit check” to check your financial capability to rent.
Default
Failure to make rent payments.
DG (Double Glazing)
Double glazed glass for windows. Warmer and safer than single glazing.
Dilapidation
Damage to property which exceeds “wear and tear”.
Extensions
Also known as a “renewal”. This is where you decide to lengthen your stay at a property, beyond the initial tenancy.
Fixtures and fittings
Items provided by the landlord. Usually consists of: curtains, carpet, kitchen counters etc.
GCH (Gas Central Heating)
Heating that is operated via a gas system.
Inventory
Details the content and condition of the property. Usually carried out by a professional clerk.
Landlord
The person or company that owns the property.
Lessor
Whoever grants the lease (usually landlord).
Letting
An agreement to rent a property.
Managing Agent
A professional that is responsible for maintaining the property.
Notice Period
If the landlord wants a tenant to vacate a property, or vice versa, the acting party must provide a period of notice to allow for a transition.
Option to Renew
A clause in the tenancy agreement that gives the tenant the option to trigger the clause and extend the tenancy.
Parties
Landlord, tenant or a guarantor that is involved in the tenancy agreement.
PCM
Per calendar month. This is when the rent amount is displayed as a monthly charge e.g. £1,000 PCM.
Premises
Part of the building which may include boundaries. Such as a fence or wall.
Private Rented Sector
An industry which consists of letting residential property via a private landlord.
References
Allows a landlord to check suitability for a tenant.
Ring fenced
This refers to money held that can only be used for a specific reason which is stated in the tenancy agreement.
Security Deposit
A certain amount of money held by the landlord or agent to use in case of any damage to the property. The deposit is given back at the end of the tenancy and kept safe and secure during.
Stamp Duty
The tenant is responsible for paying stamp duty. Learn more here: https://www.moneyadviceservice.org.uk/en/tools/house-buying/stamp-duty-calculator
Standing order
Standing order is when you set up payments (of a specific amount) to automatically come out of your bank account on certain days.
Statutory Obligations
A set of requirements to be followed by landlords and agents.
Studio apartment/flat
A flat or apartment that has a living room and bedroom built in as one. Bathroom and kitchen are separate.
Tenant
Person or company that is renting the property.
Tenancy Agreement
A legally binding document that lays out the conditions of the tenancy.
Tenancy Deposit Scheme (TDS)
TDS is a scheme that protects the tenants deposit money, during the course of the tenancy.
The Term of Tenancy
This refers to the length of the tenancy.
Termination
When a tenancy is ended or cancelled.
To Clear Monies
The passing of money through the banking system to make sure you can access the funds.
Utilities
Electricity, gas, water, internet.
Wear and Tear
A phrase used to explain damage to the property which has not been caused by the tenant, but more by time and natural decay.
Have we missed anything?
If you have a term you unsure about, comment below or send us an email and we'll add it to the list!
Share this post: