At Holmes Estate Agents, we are here to assist landlords as much as we can, and we will run through some of the most common rental jargon and terms for you right now.
Accelerated Possession Procedure
This is a fast and effective way of claiming possession of a rental property, and it is created through the use of an Assured Shorthold Tenancy when a Section 21 notice has already been served but has expired.
With this procedure, the landlord isn’t claiming any rent arrears, and the tenant must be the original tenant of the rental property.
This refers to a letting agency which is regulated and monitored by a selected principal firm and where insurance is in place
Assured Shorthold Tenancy (AST)
An AST is a type of assured tenancy which exists under the Housing Act 1988, and which has been granted for a fixed or periodic period. This tenancy provides the tenant with limited security of tenure. This style of occupancy has become the automatic tenancy between a landlord and a tenant. To end an AST, the landlord must provide a minimum of two months’ notice; otherwise, the tenant has security for six months or the fixed period, which period lasts longer.
This refers to when the tenant or landlords desires to terminate their agreement during a fixed-term lease. There will be an option available for this to occur and it can only be exercised after the occurrence of a stated event or after a stated length of time has passed. This break close would be present in the tenancy agreement.
If a tenant submits a fraudulent claim, clawback provides a way to retrieve overpayments of housing benefit. If the overpayment has occurred due to an administrative error by the local body, the overpayment cannot be carried out.
Consideration is the legal term for the rental payment, and it doesn’t have to refer to money, it can apply to goods or property.
A contract can be spoken, written or even a combination of these, and it refers to an agreement that would be enforced by courts. Concerning the letting industry, contracts are often known as leases or licences.
Dilapidations refer to damage or disrepair, and it is commonly used when discussing the condition of the property after the lease. While there must be an allowance made for normal wear and tear in a rental property, there will often be a debate as to what constitutes wear and tear.
Exclusive possession refers to the tenants right to live in the whole or part of the property, allowing them to be recognised as a lawful tenant. A length of time, rent and exclusive possession are the three main aspects of a tenancy.
A fixed term lease is where there is a set and fixed length of time for the contract, say 12 months. It is not possible for fixed-term leases to be concluded early and when the fixed-term lease period ends, the tenancy becomes a periodic lease.
PCM rent means per calendar month rent and is often stated on rental adverts indicating how much the tenant is required to pay each month.
In contrast to the fixed lease, a periodic tenancy can last forever, or more accurately, until the tenant or the landlord decides to bring the rent to an end
POA is a term often found on property adverts, and it stands for Price On Application. Any tenant looking to find out the rent or price would have to inquire with the letting agent or landlord.
Section 8 Notice
A Section 8 Notice is a legal notice where the landlord aims to conclude the tenancy early due to the stipulations of the agreement not being upheld
Section 21 notice
A Section 21 notice is a legal notice where a landlord aims to initiate the process of eviction or to repossess the rental property.
Rent arrears refers to unpaid rent on a tenancy agreement.
If you are a landlord that requires help in understanding terms or providing your tenant with the best standard of service, come and see Holmes Estate Agents and we will be delighted to help you.