From AST to yield, the property letting industry has its own language. Here's a plain English guide to the most important terms you'll encounter as a landlord.
Property lettings is full of jargon and acronyms that can leave new landlords feeling confused. Here's a comprehensive glossary of the most important terms.
A-E
AST (Assured Shorthold Tenancy) — The standard form of tenancy agreement for private residential lettings in England and Wales. Gives landlords the right to recover possession at the end of the fixed term.
Break clause — A provision in a fixed-term tenancy agreement allowing either party to end the tenancy at a specified point before the fixed term expires, subject to giving proper notice.
Condensation — Moisture forming on cold surfaces when warm, moist air comes into contact with them. Often confused with damp but has different causes and remedies. Landlords are responsible for ensuring adequate ventilation; tenants are responsible for ventilating appropriately.
DPS (Deposit Protection Service) — One of three government-approved tenancy deposit protection schemes. Operates a free custodial scheme.
EPC (Energy Performance Certificate) — A rating of a property's energy efficiency from A (most efficient) to G (least efficient). Minimum E rating required for rental properties.
F-L
Fair wear and tear — Normal deterioration of a property through reasonable use. Cannot be charged to tenants; only actual damage beyond fair wear and tear can be deducted from deposits.
Ground rent — Annual payment from a leaseholder to the freeholder of a property. Relevant for landlords of leasehold properties.
HMO (House in Multiple Occupation) — A property occupied by 3 or more unrelated people who share facilities. Subject to additional licensing requirements.
ICO (Information Commissioner's Office) — Landlords holding personal data about tenants must be registered with the ICO under data protection legislation.
Inventory — Detailed record of the property's contents and condition at the start of a tenancy. Essential for deposit deduction disputes.
M-Z
Periodic tenancy — A tenancy that continues rolling on a week-by-week or month-by-month basis after the fixed term expires, or from the outset.
Rent arrears — Unpaid rent owed by a tenant. Two months' arrears triggers Ground 8, a mandatory ground for possession.
Section 8 — A notice served under the Housing Act 1988 to seek possession on specified grounds, such as rent arrears.
Section 21 — (Being abolished under the Renters' Rights Act) A no-fault eviction notice ending a periodic or fixed-term tenancy.
Void period — Time when a rental property is unoccupied and not generating income.
Yield — Annual rental income expressed as a percentage of the property's value. Gross yield is calculated before expenses; net yield is after.
Contact us if you have any questions about any of these terms in the context of your own properties.