Landlord jargon buster

Regardless of being an experienced landlord or letting for the first time, there are probably words or terminology you might not be familiar with.

Whether it’s being communicated to you by your letting agent or you see the words online or on a document, we’ve created a list of the most commonly used words and phrases for landlords.

Landlord jargon buster: 

• ARLA Propertymark – Association of Residential Letting Agents, the most recognised letting industry body in the UK. To become a member, you must demonstrate professionalism, high standards and meet certain criteria.

• Assured shorthold tenancy – A tenancy agreement between the landlord or letting agent and tenant. This is a legal document that sets out the terms and conditions of the tenancy.

• Buy to let – a mortgage which is specifically for people who buy a property with the intention of letting, an investment.

• Conveyancer – a person’s job who’s it is to manage the legal process of moving land or property.

• Client money protection (CMP) – a scheme where funds are protected should a letting agent misappropriate money they hold.

• Deposit – a lump sum of money taken from the tenant to ensure they comply with the tenancy agreement. This is returned at the end of the tenancy unless deductions need to be made.

• Deposit protection schemes – Government-backed schemes to ensure tenants get their deposits back if they stick to the terms of the tenancy agreement and pay their rent on time. The deposit is to be put into the scheme within 30 days of it being handed over by the tenant.

• EICR – An Electrical Inspection Condition Report is to be carried out by a registered and qualified electrician once every 5 years on a rental property.

• EPC – Energy performance certificate, the certificate measures the energy efficiency of a property.

• Furnished – a rental property that has all major appliances and furniture needed to live.

• Gas safety certificate – if you are a landlord with gas appliances, a gas safety check is required every year by a Gas Safe registered engineer.

• Ground rent – a fee which a leaseholder pays to a freeholder.

• Guarantor – an appointed person who pays if a tenant fails to make their rent, they are bound to a tenancy agreement.

• Holding deposit – money taken to reserve a rental property, the landlord or agent takes it off the market. If the let is agreed and goes through, the holding deposit can be credited.

• NRL Scheme – Non-resident landlord scheme, landlords who live abroad for over 6 months of a tax year must join this scheme to pay tax when they rent out a property in the UK. This can be paid by the letting agent or tenant.

• Ombudsman – an independent professional body set up by law to help settle disputes between individuals and companies.

• PAT – Portable appliance testing, examines electrical equipment to ensure it is safe to use.

• SDLT – stamp duty land tax, simply known as stamp duty, is tax paid on any land or property purchase over a certain amount.

• Sublet – when a tenant rents out a part of a property to another tenant, approval from the landlord will be needed.

• Unfurnished – a property that is available for rent without any furniture.

• Yield – rental yield measures the amount of profit made from your investment.

Our letting agents are experienced and here to help throughout your letting journey, you will be guided through each step of our letting process. If there’s anything you don’t understand or need clarity on, we’d be happy to explain. 

Are you looking to let in Hertfordshire, Essex or the surrounding areas? Our free property valuation will help you understand what you could receive as rent. Or, if you have any questions, feel free to get in touch.

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