Landlord Glossary

A

ADVERTISE ONLY
RentLocally’s low cost entry level service for landlords who have the desire and the time to take a hands-on role in the letting process and who want to manage their property after the tenancy is in place.

ARREARS
Late or unpaid rent.

ASSURED SHORTHOLD TENANCY (AST)
Standard tenancy agreement normally used for residential lettings.

B

BUY TO LET
An investment where a property is purchased – usually with a specific type of mortgage – and rented out.

C

CARBON MONOXIDE ALARM
An alarm to monitor carbon monoxide leaks which must be installed in each room of the property where there is a gas appliance.

CHECK OUT
The process of checking the property at the end of the tenancy. The property’s condition and contents are checked against the inventory and used to determine the settlement of the deposit.

E

ELECTRICAL INSTALLATION CONDITION REPORT (EICR)
A report confirming that the electrical installation (fixed wiring) in the property is safe to use.

ENERGY PERFORMANCE CERTIFICATE (EPC)
A report detailing the energy performance of a property. A mandatory requirement when advertising a property to let.

F

FIXED TERM TENANCY
A tenancy with a specified start and end date.

FULLY MANAGED
RentLocally’s comprehensive property management service designed for landlords who want to spend the minimum amount of time on the routine letting of their property – and the maximum amount of time enjoying the financial rewards.

FURNISHED
A property that is let with all the necessary furnishings a tenant requires to live comfortably.

FURNISHINGS
The contents of the property included as part of the rent.

G

GAS SAFETY CHECK
An obligatory annual safety check of all gas appliances which must be carried out by a registered engineer.

GAS SAFETY RECORD (GSR)
The document which shows that all gas appliances (including the gas meter) have had an annual gas safety check carried out by a registered engineer.

GROSS RENTAL YIELD
The annual rental income expressed as a percentage of the value of the property.

GUARANTOR
Someone who guarantees the payment of rent for the tenant should they fall into arrears.

H

HOUSE IN MULTIPLE OCCUPATION (HMO)
A term applied to a property which has three or more tenants who are not a family unit, requiring a special licence from the local authority.

I

INVENTORY
An accurate list of the rental property’s contents and condition before the tenancy starts..

L

LANDLORD
A person who owns a property and allows a tenant to live there in exchange for monthly rent.

LANDLORD BUILDINGS INSURANCE
Specific insurance for landlords. Without it, you may not be fully protected in the event of a claim. Your normal buildings insurance is unlikely to be suitable.

LANDLORD REGISTRATION (Scotland only)
A legal requirement in Scotland to register as a landlord before you let your property.

LEGIONELLA RISK ASSESSMENT
A requirement under Health & Safety legislation, which assesses the water systems of all rented properties for the risk of Legionella.

LET ONLY PLUS
RentLocally’s fixed fee service designed for hands-on landlords who want an easy solution to marketing their property, together with the peace of mind of a full tenant selection service.

LETTING AGENT
An agent who assists the landlord and tenant with the let. Service levels will vary and will be agreed between the landlord and the letting agent. RentLocally is a letting agent.

M

MANAGING AGENT
A letting agent who manages the day to day running of the property on behalf of the landlord. The landlord remains legally responsible for the property and repairs but the agent works on the landlord’s behalf. RentLocally is a managing agent.

N

NET RENTAL YIELD
Annual rental income expressed as a percentage of the value of the property, taking into account the costs associated with owning the rental property such as property management, mortgage costs, insurance, etc.

NON-RESIDENT LANDLORD (NRL) SCHEME
The HMRC scheme which controls the taxation rules for overseas landlords.

NOTICE
A declaration given by either the landlord or tenant to bring the tenancy agreement to an end.

P

PART-FURNISHED
A property let with some furnishings, usually white goods.

PORTABLE APPLIANCE TESTING (PAT)
A test carried out on electrical appliances. The test is not legally required, although the landlord is responsible for ensuring any appliances provided are safe to use.

PORTFOLIO
A collection of properties owned and let by a landlord.

R

REFERENCING
A process by which a prospective tenant is credit checked. Background checks are also made, for instance with their current employer and landlord.

RENT
A fee (usually payable monthly) in exchange for accommodation.

REPAIRING STANDARD (Scotland only)
A standard of maintenance and state of repair which applies to almost all rented properties in Scotland.

S

SECURITY DEPOSIT
A sum of money taken from the tenant at the beginning of the tenancy held against non-payment of the rent and any damage to the property (above and beyond reasonable wear and tear).

T

TENANCY DEPOSIT SCHEME (TDS)
A scheme which protects the tenant’s deposit and assists with any disputes at the end of the tenancy. All tenants deposits must now be held in a government approved scheme.

TENANT
A person who lives in a property owned by a landlord in exchange for monthly rent.

U

UNFURNISHED
A property let with no furnishings.