If you are a first-time landlord you may be overwhelmed by all the jargon associated with renting out your property.
We have put together a guide of some of the most commonly used terms and phrases in property rental to help you ‘bust the jargon’
Assured Shorthold Tenancy (AST) – This is the most common type of Tenancy Agreement when the net rent is less than £100,000 per year. It also ensures the landlord has the right to retrieve the property at the end of the term set out in the agreement. The landlord regains the property by serving at least 2 months’ notice under section 21 of the Housing Act 1988.
Common Law Tenancy – When the net rent is in excess of £100,000 per year, the rules set out in the Housing Acts of 1988 and 1996 do not apply. In these cases a common law residential tenancy is set up and the terms of the contract will vary. They are statutory regulations and a landlord must obtain a County Court order before a tenant can be evicted.
Damage Deposit -This is a sum of money paid to the landlord before moving in to cover the cost of any damage. The money is returned to the tenant when they leave the property, providing no damage has occurred.
Energy Performance Certificates (EPC) – This is legal requirement for all residential rental properties. Failure to have a valid certificate can result in a £200 fine. The energy efficiency and environmental impact of your property will be rated on a scale of A – G.
Freehold -There is no time limit to the hold on the property.
Gas Safety Regulations 1998 – is a statutory regulation which covers the safe installation and use of gas appliances.
Inventory and Schedule of Condition – is a comprehensive record of the condition of the property and a full list of the contents.
Leasehold – is the right to hold or use the property for a fixed period of time at a given price,
National Approved Letting Scheme (NALS) -is an accredited scheme in the UK for lettings and management agents.
Portable appliance – an appliance of 18kg or less that can be easily moved e.g. kettle, vacuum cleaner.
Rent-to-Buy Scheme -is an arrangement which enables the tenant to buy the property they have been renting.
Tenancy Deposit Scheme (TDS) – protects the deposit paid by the tenant for an AST. The deposit must be registered with a recognised deposit protection scheme within 14 days of payment.
To find out more about renting out a property and being a Landlord, please contact us at Peter Robinson & Co. on 0161 678 7996