Tenancy Agreement Terms and Definitions

Assured Tenancy – This tenancy gives tenants the right to remain in the rented property until the landlord approaches the court. It provides a valid reason to evict the tenants, for instance, damage to property, etc.

Assured short-hold tenancy is the most common type in the UK. This is quite similar to an Assured tenancy, but the only exception is that it lasts over six months. This type of tenancy is prevalent as it allows landlords a facility to give any notice to end any agreement quickly.

Buy to Let (BTL) – This is more of an investment strategy whereby individuals buy a residential property or home to let it gain profits.

Buy to share (BTS) – This is a practice whereby individuals buy a property or home to rent out some portion of the property to help them pay the mortgage.

Deposit – A deposit is a fixed amount of money generally taken by letting agents or landlords at the beginning of a tenancy period to cover future losses or expenses on the part of tenants, for instance, damage and rent arrears.

DSS: Claiming state benefit from housing benefit.

Guarantor – Individuals who provide the landowner with a warranty about the tenant.

House in Multiple Occupations (HMO) – These are the forms of accommodations many people share.

Inventory – A complete list of all the items in the property, including their usage conditions.

Landlord – Refers to the individual who owns the property or the one whom you pay your rent. This may also refer to the property-free holder that provides you tenure for leasehold.

Live-in landlord – A property holder who lives in a property but rents out a portion of this property to tenants.

Live-out landlord – A type of landlord who doesn’t live in a property he rents to his tenants.

Lodger – A tenant who rents a room in somebody else’s home, generally in a live-in landlord’s home.

Per Calendar Month (PCM) – This term is used for the time when you pay your monthly rent.

Sublet – This is an agreement whereby the existing tenant rents out a portion of the property to another.

Rent – Total amount of money charged monthly by a landowner to rent out his/her property.

Tenancy – An act of occupancy when you officially become a tenant.

Tenancy Agreement: A type of Legal agreement between the tenant and landlord. This can be both verbal and written.

Tenancy Deposit Scheme – A scheme introduced by the government in 2007 to safeguard the deposits given by tenants to the landlords.

Tenant – A tenant uses someone’s building to live and pays a fixed monthly rent.


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