Glossary of terms
ARLA
The Association of Residential Letting agents.
Assured tenancy
This type of tenancy agreement is usually issued by a housing trust or housing association. They offer some security in that as long as you do not break the terms of the tenancy agreement you may continue to live in the property.
Assured Shorthold Tenancy
An Assured Shorthold Tenancy is the most frequently used tenancy agreement by landlords when letting residential properties. This type of tenancy agreement is also referred to as an ‘AST’ or ‘Shorthold Tenancy’.
Buildings insurance
Insurance against the damage or destruction of the permanent structure of a property.
Buy-to-let
Buying property with the express intention of letting it out to tenants after the purchase.
Condominium
An apartment building in which each apartment is owned separately by the people living in it, but also containing shared areas.
Contents insurance
Insurance to cover the damage or loss of items and belongings within a property.
Contract
A legal document that details the agreement between buyer and seller that binds both parties to complete the transaction.
Conveyancing
A term to describe the legal work involved in a property transaction that is conducted by a property solicitor.
Covenants
Agreements written into title deeds which detail any rules or restrictions concerning a particular property.
Credit check
A search most commonly invoked by a lender through a specialised company to ascertain if an individual has County Court Judgements (CCJs) or a bad payment history.
Credit scoring
A numerical value that ranks an individual's credit risk at a given point in time based on a statistical evaluation of information from a credit search.
Deeds
A document detailing the ownership of a property, usually held by a mortgage company.
Deposit (for renting a property)
A sum of money (usually a month's rent in advance) paid to the landlord (or agent) of the property, which is returned at the end of the tenancy, subject to the condition of the property.
Dilapidations
Any disrepair or damage to a rented property.
Duplex
An apartment or flat spread over two floors.
EPC
Energy Performance Certificates (EPCs) give information on how to make your home more energy efficient and reduce carbon dioxide emissions. All homes bought, sold or rented require an EPC.
Estate agent
A business that arranges the selling, renting (letting agents) or management of homes, land and other buildings
Excess
The amount you have agreed to pay an insurance company towards the cost of a claim.
Freehold
The ownership of a property, meaning that it belongs to the owner without the limitation of time.
Ground rent
An annual charge levied by the freeholder to the leaseholder.
Guarantor
An individual who offers to be contractually liable, both financially and legally, should a tenant fail to pay the rent during their tenancy, or in the event of damage to the property.
Guide price
An indication of the price that the property is expected to sell for and what the vendor is hoping to achieve.
HMO
House in Multiple Occupation
IFA
Independent Financial Adviser.
Insurance
An agreement in which you pay a company money and they pay your costs if you have an accident, injury, etc., or if your property or possessions are damaged or lost.
Inventory
A list detailing every item contained within a rental property and the condition each listed item is in, usually checked by all parties on the day the tenant moves in and signed by all parties.
Landlord Insurance
Specific insurance taken out by landlords to cover their properties and investments – usually the contents and buildings insurances cost more than for owner occupiers owing to the greater amount of risk.
Leasehold
A legally binding document whereby the freeholder grants the right for the leaseholder to possess, or use land or a building for a specific period of time.
Letting agent
A business that arranges the letting or management of homes rented on behalf of private and corporate individuals.
Maisonette
A property arranged over more than one floor, usually as part of an existing house.
Managing/management agent
A third party business that manages the letting of properties, in exchange for a fee, on behalf of a landlord or property owner.
Mezzanine
A small additional floor between one floor of a building and the next floor up.
NAEA
National Association of Estate agents.
Ombudsman
Independent professional bodies that deal with complaints by consumers made about particular organisations, such as estate agents (e.g. Ombudsman of Estate Agents).
Penthouse
A luxurious apartment, or set of rooms, at the top of a hotel or tall block.
Rent
A fixed amount of money that you pay regularly to the owner of a property for the uninterrupted use and enjoyment of it for an agreed period of time.
Rent guarantee and legal expenses insurance
An insurance that guarantees to pay the landlord the rent if the tenants should cease paying, plus insurance for the cost of legal fees to recover the property and/or any outstanding rent/costs etc.
Semi-detached
A property that is joined to another house on one side.
Service charge
A charge to cover the cost of repairing and maintaining external or internal communal parts of a building, usually paid by the tenant or leaseholder.
Solicitor
Legal expert who handles all of the documents relating to the purchase or sale of a property.
Structural survey
A detailed assessment of a property's structure, designed to highlight faults or defects that might impact upon its value of the property.
Studio flat
A flat with one main room, or open-plan living area, that usually incorporates cooking facilities with a separate bathroom.
Tenancy agreement
A contract between a tenant and a landlord that specifies certain rights and obligations for both parties for the duration of the tenancy. Usually an Assured Shorthold Tenancy.
Tenancy Deposit Scheme
The Tenancy Deposit Scheme (TDS) has been established under the Housing Act 2004. It requires landlords to register details of the start and end of all Assured Shorthold Tenancies on which they take a deposit.
Tenant
A person that has a temporary right to possess a property.
Tenants contents insurance
Insurance to cover the damage or loss of items and belongings within a property.
Tenant referencing
A process whereby a landlord investigates the financial history and current situation of a prospective tenant.
Title deeds
Documents displaying the legal owner of a property.
Valuation
The process of understanding a property's value, usually conducted by either a surveyor or an estate agent.
Void period
The period in which a property lies empty in between periods of tenant occupation.
Yield
Income generated from a property relative to the value of the property.
