Letting & Renting Glossary is a list of definitions commonly used when discussing the rental market.
- Letting
Renting a property is known as letting. A property that is available for rent, is available for lease.
- Lease
Leases are legally binding contracts between landlords and tenants. They specify the terms under which property may be used, and they include details regarding the rent charged.
- Security Deposit
A security deposit is a sum of money that you as the tenant pay to your landlord as a guarantee that you'll pay your rent and other bills on time. It's usually one month's rent.
The landlord can use it to cover any damage to the property, unpaid rent or bills, or other financial losses caused by you.
- Assured Shorthold Tenancy(AST)
An Assured Shorthold Tenancy is a contract between a landlord and tenant that is created once the landlord serves notice on their renter. It allows the renter to stay in the apartment until a time limit has passed, unless the landlord agrees to let them stay longer. At that point, unless otherwise decided by both parties, the renter may be asked to vacate the premises.
- Section 8 Notice
This is a letter from the landlord to the tenant of a property, regarding the terms of the Housing Act 1988. It gives the landlord reason to regain possession of their property if they provide one.
- Tenant Fee Ban
The tenant fee ban was introduced in England on 1st June 2019 and it applies to all tenants who rent a property in England or Wales. The ban means landlords cannot charge tenants any fees that are not required in law, such as a security deposit or a holding deposit.
- Legal Expense Cover
Legal Expense Cover is a legal insurance that covers you for any legal expenses you may incur if you are involved in a dispute. It is designed to help you protect your financial interests, which could be anything from defending yourself in court to paying someone else's legal fees.
- Deposit Protection Schemes
Deposit Protection Schemes are membership-based schemes designed to protect landlords' deposits by preventing them from misusing or losing their tenants' money. The schemes ensure that a landlord can only use the deposit if it is agreed that damage has been done during the tenancy.
- Stamp Duty
Stamp duty is a tax that you pay on property and land in the UK. It's usually a percentage of the price of the property, but it can also be a flat rate. The amount you pay depends on where you're buying your property and how much it costs.
- Council Tax Band
Council tax is the amount of money paid by individuals and families for their local council services, such as refuse collection. The amount is based on the value of the property owned or rented.
- House in Multiple Occupation (HMO)
Houses in Multiple Occupations are properties occupied by more than three people. These properties tend to have more than one tenancy agreement with a landlord, most often due to the shared living space.
- Rent Arrears
Rent arrears are the amount of money a tenant owes to their landlord. Eviction is the legal process of removing a tenant from rented property; this can happen when rent arrears are not paid.
- Guarantor
A guarantor is someone who agrees to pay rent if the tenant cannot do so.
- Notice Period
When a tenancy agreement ends, tenants are given a notice period in which to find new accommodation. This can be anywhere from 14 to 28 days, depending on the terms of their lease.
- Occupancy Rights
The tenant has a right to live there until their lease ends, and the landlord cannot evict them.
- PMC Rent Act
The PMC Rent is defined as "Per Calendar Month Rent." This is when rent is paid on a monthly basis.
- Permitted Occupier
A permitted occupier is someone who lives in a property but who is not a tenant and who should not be included in any tenancy agreement. It can include a lodger or foster child.
- Statutory Tenancies
Statutory tenancies are created by law, and can be for any period of time between six months and twelve months.
- Valuation
Valuations are assessments of a property's market value. The Land Registry uses them when calculating tax bills.
- Tenancy Void
The period between tenancies is called Tenancy Void, which can be for a week or a month. That means that your property is not occupied by anyone and there are no occupants living in it. This can happen when a tenant moves out of their rental unit, or if they're evicted from their home.
- Buy to Let Mortgage
A buy to let mortgage is a type of financing that allows landlords to purchase property and then rent it out. The payments on a buy-to-let mortgage include the monthly rent owed by the tenant.
- No Occupation Notice
A no occupation notice informs tenants that their tenancies have ended and that they must vacate the property within a certain period of time.
- Holding Deposit
A holding deposit is a sum of money that you pay to a landlord in order to reserve a property on which you wish to live. The holding deposit must not exceed one week’s rent.
- Home Emergency Cover
Home Emergency Cover is an insurance policy that covers landlords or tenants when there is a major accident or flooding. The cover provides financial help to those affected.
- Letting Agent
A letting agent is an intermediary between owner and tenant, often managing the property to ensure that tenants meet their obligations.
- Gas Safe Register
The Gas Safety Register is where you'll find all the information you need to make sure your appliances are safe.
The law requires that a Gas Safe Registered Engineer test all residential gas installations every five years. Tenants must obtain a Gas Safe Register certificate from their landlord before moving into a property.
- Inventory
Inventory is a complete list of the items in a property. It is created by the landlord and given to a tenant before a tenancy agreement begins, to ensure that no damage to the property occurs during the tenancy.
- Portable Appliance Testing (PAT)
Portable appliance testing (PAT) is a check to see if electrical appliances are safe. All appliances supplied within the property must have the correct PAT marking. It is your responsibility as a tenant to request a portable appliance test certificate from your landlord before moving in.
- Accidental Landlord
The term "accidental landlord" refers to someone who inherited a property and, as a result, has had to rent it out. This person may not have rented out a property before or may not be familiar with all the legal requirements that come with being a landlord.
- Viewing
Viewing is the process whereby a prospective tenant or landlord inspects the property before renting. This process is important for all parties involved in the transaction to ensure that everyone's expectations and criteria are met.
- Grounds for Possession
Grounds for Possession are the legal reasons a landlord can evict someone from their property by court order. Grounds can include non-payment of Rent, breaking the law (such as drug dealing), or if the landlord requires the use of the property and it is not being used.
- Due Diligence
Due diligence for tenants is a process landlords use to learn about their potential renters before allowing them to lease a property. It includes a credit check as well as an investigation of the tenants' rental history and financial standing.
- Landlords Register
Landlords Register is a database that can be used to make sure that tenants are not evicted or harassed, and also to ensure that no issues with the property, such as flooding or gas leaks, occur.
- Service Charge
A Service Charge is the fee tenants pay in addition to Rent to their landlords for maintenance and cleaning.
- Renewal of Tenancy
If a tenant wants to stay in the same place after your tenancy ends, you can apply for a renewal of tenancy.
- Right to Rent
It is the landlords' right to check that a potential tenant has a right to rent. It requires landlords to check their tenants' immigration status. The goal of the scheme is to prevent illegal immigrants from renting properties.
Blueston Properties is a letting and property management company in south London. For property needs, feel free to contact us on 0208 355 3405
