Understanding Letting Phrases: A Guide for Renters and Landlords

2024-06-11

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 Phrases:

EPC (Energy Performance Certificate): A rating scheme that outlines the energy efficiency of a property, grading it from A (most efficient) to G (least efficient).

EICR (Electrical Installation Condition Report): A certificate that details the safety and overall condition of all the electrical installations in the property.

Deposit Protection Schemes: Third-party schemes that safeguard a tenant's deposit. It is a legal requirement to place a tenant’s deposit in such a scheme if they are renting under an assured shorthold tenancy. The three most common schemes are the Tenancy Deposit Scheme (TDS), the Deposit Protection Service (DPS), and My Deposit.

ARLA (Association of Residential Lettings Agents): A professional body that ensures its members adhere to specific standards.

PCM (Per Calendar Month): Indicates how often the rent is paid, typically monthly.

PW (Per Week): Indicates weekly rent payments.

Guarantor: A person who co-signs the tenancy agreement and agrees to pay the rent if the tenant is unable to. The guarantor's annual income (before tax) must be 36 times the monthly rental price of the property.

Tenancy Agreement: A legally binding contract between the tenant and landlord that sets out the terms and conditions of the tenancy.

Tenancy Term: The duration a tenant will be renting the property from the landlord.

Holding Deposit: A one-week payment to the landlord or agent to reserve the property, later allocated towards the move-in funds.

Move-in Funds: Funds paid prior to the tenancy commencement date, usually comprising a 5-week security deposit and the first period of rent.

Security Deposit: A deposit equivalent to five or six weeks' rent, held in a tenancy deposit scheme to cover potential damages or unpaid rent.

Break Clause: A clause that allows either party to terminate the tenancy agreement before the official end date, subject to relevant notice being served.

Inventory Report: A detailed list of all items within a property.

Schedule of Condition (Check-in/Check-out Report): Details the condition of every item in the inventory report at the start and end of the tenancy. This inspection notes all current contents and conditions of a property.

HMO (House in Multiple Occupation): A property rented out by at least three people who are not from one household but share facilities like the bathroom and kitchen.

AST (Assured Shorthold Tenancy): The most common type of tenancy agreement in the UK, typically lasting for a fixed term of 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.