PJC’s Lettings Jargon Buster!

It can be confusing to fully understand your occupational contract (tenancy agreement) so here is our jargon buster to help you understand exactly what your agreement means.

ARLA Propertymark – The Association of Residential Lettings Agents.

The letting industry’s regulatory body. They have a strict code of practice and high standards to protect contract holders and their money.

Arrears

Late or unpaid rent in whole or in part after the due date specified within the agreement.

Break Clause

A clause in a contract allowing both parties, contract holder and landlord, to give at least two months written notice to end the tenancy earlier than the original fixed term.

Check Out Process

When a contract holder leaves a property an inspection process will check for damage beyond general ‘wear and tear’.  Fees may be deducted from your deposit if damage is found.

Clause

The Contract is constructed of numerous terms of which there are 4.

‘Fundamental Terms’ – These are set out by The Act covering the most important aspects of the contract.

‘Supplementary Terms’ – These are set out in secondary legislation and cover the practical terms, i.e. rent payment.

‘Additional Terms’ – These are specific terms for the property, i.e. No Smoking.

‘Key Matters’ – This is the information about the contract holder, landlord and property etc.

These are what make up the contract.

Contents Insurance

Insurance that covers your personal items and possessions within a property.

Contract holder

The person who occupies the property. Often referred to as ‘tenant’.

Council Tax

Tax levied by the Local Authority to cover the cost of local services and amenities. This is the contract holders’ responsibility unless otherwise stated in the contract.

Credit Checks

Checks are carried out to provide insight into your financial history to ensure you can afford the rent and will be reliable paying it.

Deposit

The sum of money paid at the beginning of the contract to act as a security against damage or breach of terms. This is returned at the end of the contract subject to its condition.

DPS – Deposit Protection Scheme

Landlords are legally required to put deposits into a government-backed deposit protection scheme. This ensures your money is always protected and returned providing all agreements in the contract have been met.

EPCs – Energy Performance Certificates

A compulsory set of tests which must be conducted on a property before letting, to assess how energy efficient it is. Properties are ranked between A and G with A being the most efficient.

Fixtures & Fittings

These are items that are provided in a letting. Examples of this can be kitchen units, appliances, curtains, carpets etc.

Gas Safety Regulations

Governs the safety of gas appliances and associated pipework. Landlords must provide a certificate to tenants stating that all appliances and the provision of gas to the property is safe.

Inventory / Schedule of condition

A detailed list of each item in the property including fixtures and fittings and their condition. This is checked and updated by both parties upon moving in and out of a property.

Liable

Legally responsible.

Meter readings

Data collected from meters that display the amount of used gas, electricity or water completed at the start and end of tenancy.

Notice / Notice period

Notification by either party with the intention of ending a tenancy within the agreed time.

PCM – Per Calendar Month

The amount of rent you will pay every month.

Reference

References obtained from previous landlords or employees in addition to vetting regarding applications.

Rent

Payment made by the contract holder to pay for occupying a property.

Occupation Contract / Tenancy agreement

The legal paperwork between you and the landlord that outlines the rights of both parties. It will detail all terms and conditions of the rental agreements.

Wear and tear

Day-to-day deterioration of an item or the property through normal use.

White goods

Household appliances such as fridges, washing machines etc.

Written Statement

This is a term to describe your ‘occupational contract’ formerly known as ‘tenancy agreement’.

Unfurnished

A property that is rented with no furnishings, so it is the responsibility of the contract holder to furnish the property.

We hope this helps – If you have any more queries please get in touch with our team here.

By PJC Homes on January 24th, 2024