MenuSearch

Glossary of letting terms

A

Additional Person Fee

A charge for every additional person to be included in the tenancy agreement.

ARLA

The Association of Residential Letting Agent, the UK’s foremost professional body for letting agents.

Arrears

Any late or unpaid rent.

Assured Shorthold Tenancy (AST) agreement

The standard tenancy agreement normally used for residential lettings.

B

Beneficiary

The individual(s) designated to receive the benefits from a policy.

Buy to Let

An investment where you buy a property – usually with a mortgage – and rent it out.

C

Check out

The process of checking a property after a tenant has vacated. Normally only done when an inventory was carried out at the start of the tenancy. The condition of the property and the contents is checked against the inventory and the report is used as evidence for the settlement of the deposit.

Council Tax

Levied by local councils to cover the cost of local amenities and services.

Critical Illness Cover

Pays out a lump sum if you are diagnosed with a specified critical illness.

Typical illnesses include:

  • Alzheimer’s Disease (before age 60)
  • Benign Brain Tumour
  • Blindness
  • Cancer
  • Coma
  • HIV - caught in the UK from a blood transfusion, physical assault or at work
  • Heart Attack
  • Kidney Failure
  • Loss of sight
  • Major Organ Transplant
  • Motor Neurone Disease
  • Multiple Sclerosis
  • Parkinson’s Disease
  • Stroke
  • Third Degree Burns
  • Total Permanent Disability

D

Death in service

Life insurance an employer provides that may be linked to a pension scheme. As cover ceases should you change jobs this is not normally suitable for mortgage protection.

Decreasing term assurance

This provides a lump sum in the event of death during the policy term. The amount of cover (sum assured) decreases over the term of the plan. This type of cover is usually used as the basis of a Mortgage Life Insurance plan to protect the declining balance of loan.

Deferred period

A period of time that has to pass before benefit from a policy is claimed. Typically Income Protection policies will have a choice of deferred periods to suit any benefit you may be eligible for from your employer.

Draft Contract

Unconfirmed version of the contract.

E

Energy Performance Certificate (EPC)

All properties let for private residential purposes must have an EPC, unless the property is Grade II Listed, It is used to report the energy performance of a property.

F

Fixed Term Tenancy

A tenancy with a specified start and end date.

Fully Managed

A service level offered to landlords. This is our comprehensive, hassle free service requiring minimum involvement from you. Whatever is required by you or the tenant, we take care of it.

Furnished

A property that is let with all furnishings a tenant would need to live comfortably.

Furnishings

The contents of the property included as part of the rent.

G

Gas Safety Check

Landlords are required to arrange of a gas safety check to take place annually on rented properties. This must be carried out by a gas safe registered engineer.

Gas Safety Record (GSR)

A document which shows that gas appliances (including a gas meter) has had an annual gas safety check carried out by a registered engineer. Landlords are legally required to have a GSR produced annually.

Guarantor

Someone chosen to guarantee the payments of rent for the tenant should they fall into arrears.

H

House in Multiple Occupation (HMO)

A term applied to a property which has three or more tenants who are not a family unit.

I

Income protection

Provides tax-free income in the event of you not being able to work due to ill health. Payments are usually paid monthly until you either return to work, the policy term expires, you retire or death occurs.

Inventory

An inventory is conducted before the tenancy starts to provide an accurate list of the rental property’s contents and their condition.

L

Land Registry

The Government organisation that holds records of all registered properties in England and Wales.

Landlord

A person who owns a property and allows a tenant to live there in exchange for monthly rent.

Letting Agent

An agent who assists the landlord and tenant with the let. Service levels will vary and will be agreed between the landlord and the letting agent.

Level term assurance

A policy that pays a fixed lump sum upon death during the policy term.

M

Managing agent

A letting agent who manages the day to day running of the property on behalf of the landlord. The landlord remains legally responsible for the property and repairs but the agent works on the landlord’s behalf.

N

Non- Resident Landlord (NRL) scheme

The scheme that sets the rules for how overseas landlords pay tax.

Notice

A declaration given by either a landlord or tenant that the tenancy agreement is coming to an end.

O

Ombudsman

Independent professional bodies who investigate complaints on behalf of customers against estate agents, solicitors and insurance companies.

P

Part-furnished

A property let with some furnishings, most properties will provide white goods.

Part-possession

The term used when a property is being sold, where a tenant has legal right of occupation.

Portable appliance test

A test carried out on electrical appliances. The test is not legally required, although the landlord is responsible for ensuring any appliances provided are safe to use.

Portfolio

When a landlord lets more than one property, this is called a ‘portfolio’.

Premium

Premium Payments to the insurance company to purchase cover.

Premium protection

Covers the cost of policy premiums during periods of unemployment due to illness or injury. Also known as waiver of premium.

R

Reference

A process by which an applicant (ie. the tenant) is credit checked, as well as checks on their income and residence.

Rent

A fee (usually monthly) paid in exchange for accommodation.

Rent Collect

A service level offered to landlords. As well as finding you a tenant we’ll also take care of collecting monthly payments on your behalf; this leaves you to organise other tenant matters, the property maintenance and adherence to legislation.

Repossession

When loans are in default the mortgage lender can repossess the property and sell it so they can repay the debt.

Reviewable premium

Premiums are very likely to change over the term of the policy, an insurer may choose to review premiums at set intervals such as every five years.

S

Security Deposit

A sum of money taken from the tenant at the beginning of the tenancy held against non-payment of the rent and any damage to the property (above and beyond reasonable wear and tear).

Set up fee

A charge for setting up a new tenancy. The cost covers referencing the tenant, drafting the tenancy agreement and registering the deposit with a Tenancy Deposit Scheme.

Subject to Contract

Words used to indicate that an agreement is not yet legally binding.

Sum assured

The amount of money you are insured for from outset of a policy.

T

Tenancy Deposit Scheme (TDS)

A landlord is legally required to register the tenant’s security deposit in a Tenancy Deposit Scheme which protects the money for the tenant and will assist with any disputes at the end of the tenancy.

Tenant

A person who lives in a property owned by a landlord in exchange for a monthly rent.

Tenant Find

A service level offered to landlords. We find you a tenant and organise a tenancy agreement, leaving you with the day to day running of the let.

Tenants

People living in a property owned by someone else.

Terminal illness benefit

The sum assured from a life assurance plan becomes payable if you are diagnosed with a terminal illness where life expectancy is considered to be less than 12 months.

The Property Ombudsmen

An independent body to which landlords can refer any complaint should the agent fail to address it to their satisfaction. We are founder TPO members.

U

Underwriter

A person who assesses and classifies the degree of risk that a proposed insurance represents.

Unfurnished

A property let with no furnishings.

W

Waiver of premium

Covers the cost of policy premiums during periods of unemployment due to illness or injury. Also known as Premium Protection

Y

Yield

The amount of money a landlord receives from in rent as a proportion of the amount of money invested in the property.