Glossary of Terminology

Break Clause A break clause gives the tenant or the landlord the right to terminate the Tenancy Agreement, in writing under specific circumstances, before the date the agreement is officially due to end.

Common Areas Areas of land or buildings such as gardens, hallways, recreational facilities (e.g. onsite gym) and parking areas where more than one resident shares access.

Contract A legal agreement between the landlord and the tenant(s) of the property.

Credit Check The procedure by which a check is made on a applicants credit history, usually conducted by one of the large dedicated credit checking agencies. The check will reveal history of credit card repayments, outstanding debts, arrears and any County Court Judgments.

Credit History A history of a individual's or company's past borrowing, including information about late payments and bankruptcy.

Deposit A sum of money (usually equivalent to four to six weeks' rent) paid by the tenant prior to moving in.

Dilapidations Any disrepair or damage to a rented property. The cost of the dilapidations are usually recovered from the deposit.

Draft Contract A preliminary version of the contract.

Energy Performance Certificate (EPC) An EPC measures the energy efficiency of a property using a scale of A-G. It is a legal requirement and the landlords responsibility to have a valid EPC for their property when it is marketed.

Inventory A list describing the condition of furnishings and contents of a property at the commencement of a tenancy, against which dilapidations/weaknesses etc which occur during the tenancy are measured.

Landlords/Agents Reference A reference given by a previous landlord, which confirms an applicants previous history of rent payments and conduct during a previous tenancy.

Lease Agreement The formal legal document entered into between the landlord and a tenant that reflects the terms of negotiation between them. It constitutes the entire agreement between the parties and sets out their basic legal rights.

Maintenance Charge The cost of repair and maintaining external or internal communal parts of a building charged to the landlord. Also known as Service Charge.

Offer A sum of money that the tenant offers to pay to rent a property.

Premium Lease Where the rent for a property is paid in full upfront.

Renewal of Contracts The opportunity to renew a contract that has expired or is due to expire shortly.

Sitting Tenant A person occupying a property who is legally protected against being removed.

Subject to Contract The term used to confirm that an agreement is not yet legally binding.

Tenancy Agreement A legal agreement designed to protect the rights of the landlord and the tenant setting out all the Terms and Conditions of the rental arrangements.

Deposit Protection Scheme All deposits being paid by a tenant for an Assured Shorthold Tenancy must be registered with a recognised deposit protection scheme within 14 days.

Void Period A period of time where the property is empty and unoccupied by a tenant.