Navigating the world of property lettings can be challenging, especially with the myriad of industry-specific terms and phrases. To help you out, we've broken down some key terminology to ensure you have a clear understanding when renting a property.
Key Letting Terms:
EPC (Energy Performance Certificate): Rates the energy efficiency of a property from A (most efficient) to G (least efficient).
EICR (Electrical Installation Condition Report): Details the safety and condition of all electrical installations in the property.
Deposit Protection Schemes: Legal requirement to place a tenant’s deposit in a third-party scheme if renting under an assured shorthold tenancy. Common schemes include the Tenancy Deposit Scheme (TDS), Deposit Protection Service (DPS), and My Deposits.
ARLA (Association of Residential Lettings Agents): A professional body that ensures its members follow specific standards.
PCM (Per Calendar Month): Indicates that rent is paid monthly.
PW (Per Week): Indicates that rent is paid weekly.
Guarantor: A person who co-signs the tenancy agreement and agrees to pay the rent if the tenant cannot. The guarantor’s annual income must be 36 times the monthly rent.
Tenancy Agreement: A legally binding contract between the tenant and landlord outlining the terms and conditions of the tenancy.
Tenancy Term: The duration the tenant will rent the property.
Holding Deposit: A one-week payment to reserve the property, which is later applied to move-in funds.
Move-in Funds: Funds paid before the tenancy starts, usually including a 5-week security deposit and the first period’s rent.
Security Deposit: A deposit equivalent to five or six weeks' rent, held to cover potential damages or unpaid rent.
Break Clause: Allows either party to end the tenancy agreement early, subject to notice.
Inventory Report: A detailed list of all items in the property.
Schedule of Condition (Check-in/Check-out Report): Records the condition of items at the start and end of the tenancy.
HMO (House in Multiple Occupation): A property rented by at least three people who are not from the same household but share facilities like the bathroom and kitchen.
AST (Assured Shorthold Tenancy): The most common type of tenancy agreement in the UK, usually lasting six months to a year.
Understanding these terms will help you navigate the letting process with confidence, ensuring a smoother experience whether you’re a renter or a landlord.
Watch a video about what to expect when renting with Crown Home Buying & Letting.
Rates the energy efficiency of a property from A (most efficient) to G (least efficient).
Details the safety and condition of all electrical installations in the property.
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