When you’re looking for a property to rent, knowing the basic terms used will ensure that you are aware of all the simple steps to undertake. Whether you’re a prospective landlord or tenant, understanding what these terms mean is essential.
Arrears
Also known as arrearage sometimes, arrears is related to the part of the debt overdue by the tenant to the landlord. It’s the amount accumulated since the date the first missed payment was due. Payment in arrear relates to payments made after the service was provided.
Council Tax
As the local taxation in England, Scotland, and Wales, it combines half of a property element and half of a personal element. Each home, either house or flat, is allocated within eight bands (from A to H). The assumed capital value will determine how much council tax needs to be paid.
Deposit
The amount of money that is agreed between both the tenant and the landlord or agent as a security in case of eventual damage to the property. If you’re on an assured shorthold tenancy the deposit is held by a government-backed tenancy deposit scheme, and the amount can be the equivalent of six weeks of rent. At the end of the tenancy, if there is no additional damage to repair, the deposit is returned to the tenant.
Guarantor
A guarantor is someone who guarantees rental payments and any other rental obligation of a tenancy to a landlord or agent, should the tenant be unable to pay them. Credit search references may be undertaken to assure that the guarantor will be able to cover eventual costs.
Inventory
An accurate written record of both the condition and the content of a property is usually provided at the beginning of a tenancy. This legally binding document assists when, at the beginning and end of a tenancy, both parties check the condition of the contents of the home to determine if the deposit will be returned or held to cover damage costs.
Notice Period
A notice period is a formal document stating the amount of time until the tenancy is over. Both the landlord or agent and the tenant must provide each other with a notice period to inform when the end of tenancy will be.
Tenancy Agreement
This legally binding document encompasses all of the rental details and terms, stating both the involved parties (landlord or agent and tenant). It also includes the length of the tenancy, the amount to be paid, and other relevant information.
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