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Assured Shorthold Tenancy Agreement
This is the most common form of tenancy in the private rented sector. The minimum period is 6 months. The AST gives the tenant the right to live in the property for a fixed period of time. Equally the AST gives the landlord the right to repossess the property at the end of the tenancy.
Assured Tenancy Agreement
This type of tenancy agreement offers the tenant some security that they may live in the home provided they do not break any conditions of the tenancy. These types of agreement are sometimes used by housing associations.
Apartment
Apartments are self contained homes within a larger purpose built property. The term apartment and flat are often used to describe the same property.
Attic
This is a room in a house created out of the roof space, to give an additional bedroom or study and often a bathroom as well. Attic rooms or loft conversions can be perfect as a master bedroom suite in a family home, as a teenagers bedroom, or a childrens playroom.
A single room in a house which doubles as both a bedroom and living room. In a house comprising bedsits, the bathroom and kitchen facilities are shared with other occupants of the bedsits.
Bungalow
A single storey house, all the accommodation is on one level.
A mortgage specifically for people who rent out their property. See our buy-to-let page for more information.
A contract is a binding agreement between tenant (or tenants, housemates or flatmates) and the landlord. Most landlords and tenants will sign a contract or Tenancy Agreement which sets out the terms and conditions that they will both adhere to during the tenancy.
Conversion Apartment
A conversion apartment is where a property which was originally a house or commercial building, has been split into two or more flats.
Corporate Let
A coporate let is where the landlord rents out the flat or house to a company. The company pay the rent on behalf of one of their employees who will live at the property. Sometimes corporate lets will be short term lets, often on a week to week basis, or they may be for several months or even years. Rental income is higher for corporate lets, so the potential profit for landlords is increased. However, this only applies if the property is continuously occupied, which is unlikely. The reality is that although the monthly rent is higher than an ordinary let, the inevitable voids reduce the overall profit.
Cottage
A small house, usually of only one or sometimes two storeys, which is located in a rural area, perhaps near to a lake or mountains. The upper floor will be in the roofspace so that the upper rooms will have sloping ceilings.
Covenants (in a Leasehold or Freehold document)
Covenants are agreements written into the Leasehold or Freehold documents accompanying a property title. The covenants bind the owner to do, or refrain from doing, certain things relating to the property or land. Most flats and apartments are leasehold and will contain restrictive covenants that are included to protect the owner, the tenant and other flat owners in the block. Houses may be Leasehold or Freehold, both of which are likely to contain restrictive covenants.
A properties lease will often contain a covenant which relates to letting or renting out the property.
It may require:
you to obtain written permission from the freeholder before you rent out the property;
you ensure that the property is let to a single family only, this may prevent you from letting to students, or letting rooms individually;
that you do not erect or show a 'For Rent' sign in the garden or any windows.
Contents Insurance
See Insurance
Council Tax
The occupier of a property is required to register for, and to pay Council Tax to the Local Authority, to pay for services such as refuse collection, schools, local leisure centres, etc.
CP12
Landlords are required to ensure that all gas appliances in a rented home pass a Gas Safety Check every year.
A deposit is money paid by the tenant to the landlord at the start of the tenancy, as security against damages or unpaid bills.
As a landlord it is worthwhile taking a deposit from your new tenant, housemate or flatmate. Taking a deposit before the tenancy starts will give you some comfort that the tenant is bona fide.
Landlords who take deposits must by law protect that deposit using a Goverment approved Tenancy Deposit Scheme.
Detached House
A home that is not joined to any other.
DSS Let
A DSS let is one where the tenant who rents the home relies on state aid to pay the rent. Local Housing Allowance is the new term for Housing Benefit.
Duplex Apartment
An apartment or flat which is on two floors.
This is where a bedroom in a home has exclusive use of a bathroom that is accessed only from the bedroom.
Energy Performance Certificate (EPC)
From October 2008, all properties available for rent, require an Energy Performance Certificate. The EPC will give prospective tenants information about the energy efficiency of the house. Home improvements such as cavity wall insulation, double glazing, loft insulation and an efficient central heating system, will all ensure that the house is as efficient as possible.
The EPC rating is displayed as a graph, similar to the ones found on domestic kitchen appliances. The rating is on a scale from 'A' to 'G'. An 'A' rated property is the most efficient and a 'G' rated property is the least efficient.
Ex-Local Authority
This refers to a property that was previously owned by the local council.
A flatmate is a person who shares their apartment or flat with one or more people. If the people live in a house then housemate is the common term used. In other countries flat mates or housemates are sometimes just called roommates.
Flatshare (flat share)
A flatshare is where a number of people share a flat or apartment. Each flatmate will have a bedroom, but will share communal facilities such as a lounge, kitchen or bathroom. Sometimes one of the flat mates will also be the landlord. This is termed a 'live in landlord'. If the landlord does not live at the property they are termed a 'live out landlord'.
If you have a spareroom why not rent it out for part of the week, typically Monday - Friday. See our Fractional Letting page for more information.
Freehold Covenants
These are restrictions on what you may or may not do whilst living in a property. See Covenants.
Furnished/Unfurnished
A furnished flat or house will mean that the tenant does not need to provide their own furniture. Sofas, beds, tables, kitchen appliances such as a cooker and fridge will all be provided by the landlord. Generally an unfurnished property will include kitchen appliances, but no other furniture. In student flats and houses the landlord may provide additional items of furniture like desks and chairs, in the kitchen items of cutlery, pots, pans, a toaster and a microwave may also be supplied. Serviced Apartments are a step up from furnished properties. Tenants moving into a serviced property should expect to move in with just their clothes and some food. All other items will be provided. Tenants enjoy the benefit of a housekeeper or cleaner who will clean the apartment and change and replace the bedlinen and towels.
A flat or apartment which has direct and sometimes exclusive access to a garden.
Landlords are required by law to ensure that any gas appliances in rented houses or flats are correctly installed, so that the tenant may live safely in the property. For details of the landlord responsibilities, see here.
Granny Flat
Not necessarily occupied by senior citizens! Granny flats are self contained properties within the grounds of another home. They may be built on the side or an existing house, or they may be detached in the grounds. Granny flats can be relatively cheap to rent in comparison to renting an ordinary property.
Guarantor
Where a landlord has some reservations about the ability of the tenant to pay the rent, they are entitled to ask for a tenant or housemate to provide a guarantor as additional security to ensure that the rent will be paid. Student lets are one example where a landlord will usually require that a guarantor is provided.
The guarantor can be a relative, a friend, or may be the tenants employer. Anyone can be a guarantor. If you are a guarantor it is important to remember that the guarantor is wholly responsible to pay the rent to the landlord if the tenant defaults for any reason. This is a substantial commitment and should not be entered into lightly.
A boat that has been converted inside to provide living accommodation.
Housemate (house mate)
A housemate is a person who takes part in a house share, they share the house with one or more people. If the housemates live in a flat then flatmate is the common term used. In other countries housemates and flatmates are sometimes just called roommates.
House share (houseshare)
A house share is exactly what you would expect - a number of people share a house. They will each have a bedroom, but will share communal facilities such as a lounge, kitchen or bathroom. Some housemates may have their own bathroom, or ensuite. Sometimes one of the housemates in a houseshare will be the owner or landlord. This is termed a 'live in landlord'. A professional landlord will not normally live in a property that they are renting out.
In the current climate of high house prices, houseshares are becoming increasingly common. Some owners use houseshares as a means of getting onto, or staying on the property ladder. If you own a property and are thinking of a flatshare or houseshare, some mortgage providers will take account of the income you receive when they calculate the amount that they are prepared to lend to you.
Houses in Multiple Occupation (HMO)
Certain properties are classified as Houses in Multiple Occupation and require a licence from the local council.
A landlord may wish to undertake an inspection of their rental properties at regular intervals, say every three months. Landlords are entitled to do this, providing they reasonable notice. Usually the landlord will prefer if you are present during the inspection, although this is not a requirement. Tenants can use the inspection process as an opportunity to report non-emergency problems to the landlord.
Inventory
An inventory is a list of items included in the property as part of the tenancy, when you move into a flat or house. Items such as a sofa, tv, kitchen appliances, beds, wardrobes and even cutlery if included. Inventories are less common for people who are in a flat share or a house share. They are generally only produced by the landlord if you are renting a whole property. Tenants should confirm that all items on the inventory are present at the property when you move in, as the value of any missing items may be deducted from your damage deposit at the end of the tenancy.
Insurance
Tenants
As a tenant you will be responsible for arranging your own contents insurance. The structural insurance will ordinarily be organised by the landlord.
Housemates, Flatmates, Roommates
Insurance policies are available that cover you if you live in a shared property. This applies to both students and professionals. Some policies are on an individual basis and others cover all occupants of the house on a joint basis.
Landlords
Many companies offer insurance to cover both the structure and contents of a landlords properties. The policy will also usually provide cover for loss of rent and also to re-house a tenant if say the property is flooded.
These are restrictions on what you may or may not do whilst living at a property. See Covenants.
A Let-to-Buy mortgage is similar to a Buy-to-Let mortgage. It works by allowing you to borrow money against your existing home to use as a deposit for your new home. Your existing house is then available to let out to tenants. The rules to Let to Buy are different from Buy to Let. In some instances you may be able to borrow a higher amount than under Buy to Let rules. Let to Buy is often a good way to break the chain when property buying. Using Let to Buy means that you do not need to see your home to be able to buy another. If you are thinking about using Let to Buy you should seek advice from an Independent Financial Advisor.
Link-Detached House
This is a house which is joined to another by the garage.
Live in Landlord
The owner of the property lets out one or more rooms in the house or flat in which they live.
Live out Landlord
The landlord owns the flat or house, but does not live there.
Local Housing Allowance
LHA has replaced Housing Benefit for tenants who needs state assistance to rent from private landlords. One of the main changes is that the Local Housing Allowance is paid direct to the tenant, whereas Housing Benefit was paid to the landlord.
Lodger
Another term for a housmate or flatmate. A lodger is someone who lives with a Live in Landlord.
Loft Apartment
A loft apartment is where the apartment has been created out of a much larger commercial space in a factory, warehouse or old school or hospital.
Loft Conversion
A home with a converted Attic to create a useable room in the roof space.
A flat or apartment which is on two floors, often with its own front door onto the street.
Management Fees in purpose built blocks of Flats - Who pays the fee?
Owners of flats in purpose built blocks will incur a management fee to cover costs such as structural insurance and repairs and maintenance for the communal areas. If you are considering signing a tenancy for a flat in a purpose built block you should check to see if you or the landlord are responsible for paying the management fee.
Mews House
Traditional Mews Houses are converted from 17th and 18th century stables built around a courtyard. They are amongst some of the most sought after properties in London. They have a garage on the ground floor, with the living accommodation above.
Multiple Occupancy
This is where there is more than one household in the property. Flats and houses where flatmates or housemates live in a shared property are defined as multi-occupancy properties. In certain circumstances these properties may need to be licensed.
On street, off street, garage, permit parking - tenants should factor this cost into your budget if you are renting a property or entering into a flat share or house share.
Part Week Letting
Letting your room for part of the week is commonly termed Fractional Letting and is a great way to test your idea of becoming a landlord. If you are thinking of renting out your spare room but are not too sure if you want to commit to a six month contract with a tenant, then Fractional Letting offers you the ability to test your idea of becoming a landlord.
PCM (per calendar month) or PW (per week)
PCM refers to a rent that is payable monthly. The rent is not necessarily paid at the beginning or end of the month, it may be paid on any day of the month as agreed between the landlord and tenant.
PW refers to a rent that is payable weekly. With professional lets or houseshares paying rent weekly is becoming less common as more and more people are paid monthly.
Professional Let
A professional let is where the tenant who rents the property is in employment, as opposed to a student or someone who relies on state benefits to pay the rent.
Landlords will ask for references from potential tenants or housemates. This allows the landlord to contact the tenants previous landlord and enquire about how they conducted themselves during the tenancy. References may also be taken up from the tenants employer, to check that the tenant can afford the rent, or that they are not under threat of redundancy.
Did you know that you can earn up to £4250 per year tax free by renting out your spare room.
Rental Income
The money that landlords receive from tenants is called rental income. Tax will be due on any rental income received after deductions for allowable expenses.
Roommate (room mate)
Roommate is often used interchangeably with flatmate and housemate. It refers to a person who is sharing a flat our house with other tenants.
To end an Assured Shorthold Tenancy the landlord must serve a Section 21 Possession Notice on the tenant giving at least two months notice before the end of the contract.
Security Deposit
See Deposits
Semi-Detached House
A house that is attached to only one other house.
Shared Buying
A leg up on the property ladder, or a recipe for disaster?
For some first time buyers an option in addition to a flatshare or houseshare is to buy a property with a friend. Generally two, but sometimes more, friends will get a mortgage together, which will allow them to buy a property they could otherwise not afford. The reality is that few people take the plunge and those who do will need to work at their relationship to make it work in the long term. Some lenders offer mortgages specifically tailored to shared buying. Difficulties tend to arise when one member of the household wishes to sell and the others want to stay put. The key is to think through all of these permutations before you buy and get a contract drawn up that sets out what will happen if one or more parties wants to sell.
A let between one day and six months is classified as a short term let. Short term lets can offer good rental income potential, although you will need to consider the level of voids you may have.
Student Lets
A student let is where the tenants in the house are made up entirely of students. Often the parents of the students will be responsible for paying the rent and may act as a guarantor.
Studio Flat
A studio flat is similar to a Bedsit, where the living and sleeping accommodation are in one room. The difference is that with the studio apartment it has its own kitchen alongside the living/sleeping part and also a separate bathroom.
Sub-Letting
Sub-letting is where a tenant lets a room or property to another party.
A tenant is a person who rents a property from a landlord.
Terraced House
A house that is joined to two houses, one on either side. Many houses joined together in this way form a terraced street.
Townhouse
A townhouse is a fashionable house on more than two floors. Townhouses often have an integrated garage with the living accommodation built over the top, with bedrooms above that.
Gas, Water and Electricity are all utilities which may, or may not be included in a rental agreement.
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