Jargon buster – Part Two - 27/08/20
In part two of our jargon-busting series, we simplify some of the lingo you might not understand if you’re an inexperienced landlord or tenant.
Assured Shorthold Tenancy (AST)
The most common type of contract between the landlord and the tenant. Once this has been signed, you’re free to move into your new home! AST is often shortened to ‘tenancy’.
A sum of money up to 5 weeks rent that is held by the agent or a government backed deposit scheme to cover any damage caused by a renter during the tenancy. If you leave the property in the same condition you found it in; the agent should return the full amount at the end of the rental.
The agent or landlord will check your credit history to make sure you are not likely to make late rent payments or be unable to afford the rent.
Fixtures and fittings
Items provided by the landlord at the start of the tenancy. It’s essential to check what’s included if the property is listed as ‘furnished’ to ensure you’re getting value for money from the higher rent you’ll be paying.
A person who will not be living in the property who is required to pay the rent if the tenant does not. Guarantors must also have credit searches and sign the tenancy agreement.
The amount you pay to secure the property after you apply to rent it. The holding deposit is usually one week’s rent which is deducted from the first month’s payment. Not all agents take a holding deposit.
The property is inspected, and a report is created on its condition before you move in. When you move out, the report will be cross-referenced with the situation you leave the property in to check for damage.
The amount of time a landlord or tenant has to give before the tenancy ends and the tenant moves out.
The agent or Landlord will usually ask fora prospective tenant to provide references. This is usually an employment reference and previous Landlord reference is applicable.