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Tenant Services
Jargon Buster
Common terms used within lettings.
Admin fee
A payment made by a prospective tenant to cover the cost of processing an application to rent a property. This amount will go towards the initial invoice payable prior to the tenancy start date.
Assured shorthold tenancy
The most common type of agreement where the tenant is an individual and the rent does not exceed £25,000 per annum. An AST can be for any duration, for a fixed term or periodic, although the court will not grant possession under 6 months.
Agreement fee
The cost of drawing up the tenancy agreement by the agent, normally shared between the landlord and tenant.
Cleared funds
Monies paid in the form of a banker's draft, or by telegraphic transfer/CHAPs, or by cash.
Damages/dilapidations
Any disrepair or damage to a rented property or any breach to the terms of the tenancy agreement.
Extension
Also known as the renewal, this is the continuation of a tenancy after the expiry of the initial term.
Guarantor
A person who has undertaken to guarantee to the Landlord that if the Tenant does not fulfil the obligations agreed to in the Tenancy Agreement that they, the Guarantor, will fulfil those obligations on behalf of the Tenant.
Initial invoice/monies
Monies due from the tenant to the agent, which must be in the form of cleared funds before keys can be released, to cover the advanced rental payment, six week security deposit and the agreement fee.
Inventory
A document prepared by the landlord, the agent or an inventory clerk and given to the tenant detailing the Landlord’s fixtures, fittings, furnishings, equipment etc., the décor and condition of the premises generally. Such a document may subsequently be relied upon at the end of the tenancy in assessing damage or compensation for damage and so should be checked carefully at the commencement of the tenancy.
Joint and several liability
The tenants are collectively and individually liable for the payment of all rents and liabilities falling during the tenancy as well as any breach of the agreement until all payments have been made in full. A maximum of four people can be such joint tenants.
Stakeholder
When the security deposit is held in a designated account and monies cannot be deducted without written permission from both parties (landlord and tenant).
SDLT (Stamp Duty Land Tax)
Duty payable to the Inland Revenue on a residential tenancy. This only applies where the rent exceeds a certain limit.
Subject to contract
Words to indicate that an agreement is not yet legally binding.