Property Jargon

Assured Shorthold Tenancy (AST)

This is a form on tenancy which provides permission for a tenant to reside in a property, for a specified duration of time, and is subject to adherence to the terms of the tenancy being adhered to.

Break clause

Sometimes referred to as a Release Clause. A break clause is sometimes included in a fixed term tenancy, typically if the duration is over a year or more.

Contents insurance

Insurance which covers any loss or damage to your possessions within the property.

Contract

A document which is agreed by both parties, which binds them together, until the transaction is complete.

Credit check

This is the check made on the credit history of an applicant. This will reveal the history of credit card repayments, outstanding debts, arrears and CCJs.

Credit history

A history of the individual’s past borrowing, including information about late payments and bankruptcy.

Deposit

A sum of money, typically one month’s rent, which is paid at the beginning of the tenancy. It is then returned at the end of the tenancy, subject to the condition of the property.

Electrical Equipment (Safety) Regulations 1994

These regulations govern the safety of all electrical equipment provided by the Landlord to a Tenant.

Energy Performance Certificate (EPC)

An EPC is a compulsory set of test, which came into force in October 2008, which are conducted on a property prior to letting. The certificate shows how energy efficient the property is.

Fire Safety Regulations

These specify certain actions which must be undertaken by a Landlord or Tenant.

Gas Safety Regulations

This governs the safety of gas appliances and associated pipework.

Inventory

The inventory is a list describing the condition of the contents of a property. This is produced prior to commencement of the tenancy and is used to ensure that the property is left is the same condition.

Landlord

The person who allows the use of his or her property by another, in exchange for rent and subject to conditions set out in a tenancy agreement.

Let agreed

A tenancy is subject to a contract which has been agreed with the Landlord by Tenants.

Letting Agent

A person or company who engages to perform, on behalf of the Landlord, some or most of their duties to the Tenants, in return for payment.

Maintenance charge

A charge to the leaseholder for the maintenance and repair of the commonly shared internal and external parts of the building and premises.

Property management

A person or company who performs, on behalf of a Landlord, some or most of the duties to the Tenants.

Rental yield

The rental yield is the amount of money a Landlord receives in the form of rent over the course of a year. This is expressed as a percentage of the amount of money which has been invested in the property.

Renting

Renting is an agreement where a payment is made for the temporary use of a property owned by another person.

Tenancy

A tenancy grants temporary possession of a property to a Tenant by a Landlord.

Tenancy Agreement

A tenancy agreement legally identifies the rights of both tenants and landlords.

Tenant

The Tenant is the person or party who is legally entitles to the temporary possession of a property.

The Property Ombudsman (TPO)

The Property Ombudsman is a free, and independent arbitration service, which provides sellers, buyers, landlords and tenants with assurance that they will receive the highest level of customer service.