Are you considering investing in a rental property in Peterborough? If so, understanding the various terms and jargon associated with property management is crucial for your success. From legal terms to property management lingo, our landlords dictionary is your go-to resource. It provides clear explanations that can help you feel more confident in managing your investment. In fact, having a reliable landlords dictionary at your fingertips can make all the difference when it comes to keeping things organised and manageable.
Whether you’re inheriting a family property, starting fresh with a new buy-to-let investment, or expanding your portfolio, navigating the complexities of rental agreements, tenant relations, and property maintenance can often feel overwhelming. This is exactly where our landlords dictionary proves invaluable.
Our guide will help break down the essential terms, ensuring you fully understand the jargon so you can manage your properties with ease. With the right knowledge, you’ll be better equipped to handle any situation that may arise.
At PTL Lettings, we like to make your life as a landlord as simple and stress-free as possible. With our landlords dictionary, you’ll have everything you need to stay informed and prepared.
Read our guide, keep it handy, and take the guesswork out of property management.
The Landlords Dictionary: Jargon Explained
Allowable Expenses
Allowable expenses are expenses that are “wholly and exclusively for the purposes of renting out the property.” These expenses are deducted from your rental income, therefore reducing the amount of taxable profit you’ll need to pay tax on.
Annual Percentage Yield (APY)
This term refers to the total return you expect to receive on your investment over a year, expressed as a percentage. It factors in the rent you receive and also any appreciation of the property. Additionally, understanding potential yield allows you to compare different rental properties in Peterborough and assess their profitability.
Assured Shorthold Tenancy (AST)
This is the most common type of tenancy agreement in England and Wales. ASTs typically last for six or twelve months and offer flexibility for both landlords and tenants. Tenants also have the right to ‘quiet enjoyment’ of the property and must give two months’ notice before leaving the rental.
Deposit Protection Scheme (DPS)
Landlords in England, (Wales, and Scotland) are legally required to protect tenant deposits using a government-approved scheme. The purpose of this is to safeguard the tenant’s money in case of any deductions for damages beyond normal wear and tear.
Energy Performance Certificate (EPC)
An EPC is a document that rates the energy efficiency of a property on a scale from A (most efficient) to G (least efficient). Therefore, having a good EPC rating can attract tenants who prioritise energy-saving features and can potentially help you achieve a higher rent.
Gas Safety Certificate
This is a legal requirement in England and Wales for all rented properties with gas appliances. Crucially, landlords must ensure a qualified engineer inspects the gas appliances every year and provides a valid Gas Safety Certificate.
Guarantor
A guarantor is a third party who agrees to be financially responsible for a tenant’s rent if they default on their payments. Importantly, this can be helpful for landlords who are renting to students or those with limited or poor credit history.
Holding Deposit
This is a non-refundable fee a prospective tenant pays to reserve the property while their application is being processed. Holding deposits are typically capped at one week’s rent.
Inventory Report
A detailed record of the property’s condition at the start and end of a tenancy is crucial. Inventory reports typically include photographs and descriptions of the property’s fixtures, fittings, and any existing damage. These reports are important for resolving any disputes over deductions from the tenant’s deposit.
Inventory Check-Out
This is the process of inspecting the property with the tenant at the end of the tenancy to assess any damage beyond normal wear and tear.
Landlord Insurance
This is a specialised type of insurance designed to protect landlords against financial losses associated with their rental property. Unlike standard home insurance, landlord insurance can include buildings, liability, loss of rent and legal expenses cover.
Letting Agent
Letting agents (or property management companies) manage the rental process on behalf of landlords. This can include finding tenants, conducting viewings, drawing up tenancy agreements, and handling rent collection and maintenance issues. Letting agents typically charge a fee for their services.
Letting Fee
This is the fee charged by letting agents for finding a tenant and managing the rental process.
Maintenance
Landlords are responsible for maintaining the rental property and keeping it in a good state of repair. This includes repairs to essential services like plumbing, heating, and electrical systems. Additionally, upkeep to the structure of the property itself should be taken care of. Tenants are responsible for general upkeep and reporting any issues promptly.
Mortgage Interest Relief
With a buy-to-let mortgage, landlords can claim tax relief on a portion of the mortgage interest payments. This means that, instead of being taxed on the full rental income, landlords can offset some of the interest paid on their mortgage against their rental income, reducing their overall tax bill.
Notice Period
This refers to the amount of notice a tenant or landlord must give to terminate the tenancy agreement. The standard notice period for tenants in an AST is two months, however, landlords typically require longer notice periods for repossession.
Rent Arrears
This refers to the unfortunate situation where a tenant falls behind on their rent payments. Landlords have legal options to recover unpaid rent, however it’s always best to try and communicate with the tenant first to find a solution.
Rent Guarantee Insurance
This type of insurance protects landlords against financial loss if a tenant defaults on rent payments. Costs vary between providers, therefore it’s important to get several quotes.
Rent Review
The process of renegotiating the rent amount with the tenant is typically done at the end of a fixed-term tenancy.
Right to Rent Checks
Landlords in England have a legal duty to conduct “Right to Rent” checks to ensure their tenants have the legal right to be in the UK. This typically involves verifying passports or visas.
Section 21 Notice
A Section 21 notice is a legal document used by landlords in England and Wales to repossess a property at the end of a fixed-term tenancy agreement. This is provided they have complied with all their obligations under the tenancy agreement. The Labour government is seeking to scrap section 21 so it’s crucial to stay up to date with local developments on this.
Selective Licencing
In certain areas of the UK, local authorities may require landlords to obtain a selective licence to rent out a property. This is typically done in areas with high concentrations of rented properties to ensure proper management standards. Ask the team at PTL Lettings if you have a rental property in mind and we can advise you.
Tenancy Agreement
This is a legally binding contract between the landlord and tenant outlining their respective rights and responsibilities. It includes details such as the rent amount, payment schedule, deposit information, notice periods, and maintenance responsibilities.
Tenancy Deposit Scheme Dispute Service (TDS DRS)
If a dispute arises regarding deductions from a tenant’s deposit, both landlord and tenant can access a free mediation service offered by the TDS.
Unfurnished vs Furnished Tenancy
Understanding the difference between these tenancy types helps clarify what is included in the rent and the landlord’s responsibilities regarding furniture and appliances.
Wear and Tear
Normal wear and tear refers to the deterioration of a property that occurs through everyday use. Examples might include faded paintwork, worn carpets, and minor scratches on floors. Landlords cannot deduct from a tenant’s deposit for normal wear and tear.
What Next?
We hope our landlords dictionary is helpful! Understanding these key terms will empower you to make informed decisions as a landlord. Remember, there’s always more to learn, and the team at PTL Lettings is here to help!
With knowledge and preparation, you can navigate the world of property lettings in Peterborough with confidence and success.
Rental Property Management in Peterborough
At PTL Lettings we are your local property management experts in Peterborough. If you need expert letting or property management services to help market and manage your property, our experienced team can help.
Contact us today on 01733 555183, book a valuation or browse our letting and property management services .
