Updated on 16th December, 2022 by Martin Astley
Are you new to the landlord trade and need to clarify 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 moving into someone’s property.
Landlord: A person who rents out a building, accommodation, or piece of 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 that 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) are 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.
Sublet by Tenant: The tenant lets the property out to another tenant. Any sublet by a tenant must have been approved by the landlord. A tenancy agreement is likely to state whether the landlord permits these sorts of sublets.
Sublet by Landlord: A superior landlord gives permission for a landlord to sublet 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 sublet, 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 for professional tenancy cleaning and repairs.
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 the property and the agreement falls through, a landlord can decide to keep the holding deposit to settle the costs incurred 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 taken care of 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: This covers anything inside the property; it does not include the building itself. For further protection and peace of mind, 24|7 Home Rescue provides landlord cover.
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 also have to be checked regularly by a qualified and registered engineer.
Portable Appliance Test (PAT): As 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 document that is legally required for all UK rental properties with gas appliances. This is also known as a CP12 certificate. part of the Gas Safety Regulations Act of 1998; regulations that regard the 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, which is likely measured on a scale from A to 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.