Property Jargon Every Letting Agent Should Know

The property sector is full of jargon, and even the most experienced letting agents can get confused. Whether you’re explaining concepts to landlords or simply brushing up on your expertise, these straightforward definitions will make your life easier and your work more impactful.

Why Understanding Property Jargon Matters

The property industry is known for its love of acronyms and niche terminology, and getting familiar with them early on will save you time and effort in the long run. But understanding these terms isn’t just about showing off your knowledge - it’s the easiest way to show clients you understand the industry and connect with them on a deeper level. By speaking their language, you establish yourself as a trusted expert who understands their needs.

“I would recommend researching acronyms used within the industry and the industry-specific words and language. Having come from the property industry myself, although the transition was smooth into Delivery, it took some time to get used to the jargon!”

Luarna Sasso-Wiggins, Veco’s Delivery Business Consultant

Common Property Jargon Letting Agents Should Know

Accidental Landlord: Someone who becomes a landlord without planning to. This might happen if they inherit a property or can’t sell one.

Appraisal: When an estate agent estimates how much a property is worth.

Arrears: Any unpaid rent by the tenant in whole or in part after the due date listed in the tenancy agreement.

Association of Residential Letting Agents (ARLA): ARLA is the professional body for letting agents in the UK. They help by offering advice and ensuring agents follow good practices.

Assured Shorthold Tenancy (AST): A contractual agreement between a landlord and tenant with the terms and conditions of the rental, allowing the landlord possession of the property after the fixed term.

Break Clause: A rule in a tenancy allowing either the landlord or tenant to end it early, with notice.

Buy-To-Let: Buying a property to rent it out to tenants.

Capital Gains Tax: A tax landlords pay on the profit when selling a property that is not their primary home. 

Chain: A group of buyers and sellers whose property sales or purchases depend on each other.

Chain Free: A sale or purchase with no links to other transactions.

Check-in: The process where a tenant moves into a rental property. It includes making an inventory that lists the property’s condition when the tenant first moves in.

Check-out: When a tenant leaves the property, this process checks that the property is returned in the same condition as it was when the tenant moved in, according to the Check-In inventory.

Conveyancing: The legal process of transferring property ownership.

Covenant: Rules in a rental agreement about what the tenant and landlord must do.

Deposit: A sum of money paid by the tenant at the start of their tenancy. It’s a security measure for the landlord against rent not paid or property damage. Deposit amounts vary in the UK, Wales and Scotland but usually ranges from 5 weeks to 2 months’ rent.

Deposit Protection Scheme: Landlords in England, Scotland and Wales must protect their tenant’s deposit in a government-approved deposit protection scheme. This helps keep the deposit safe and resolves disputes when the tenancy ends.

Dilapidations: Damage caused by a tenant that the landlord can charge for using the deposit.

Early Repayment Charge (ERC): A penalty fee for repaying the mortgage early.

Electrical Installation Condition Report (EICR): A report on the safety of electrical installations in a rental property. In England and Scotland, it’s required for rental properties to have a valid EICR.

Energy Performance Certificate (EPC): Rated on a scale from A to G, this certificate shows how energy efficient a property is. Tenants should receive an EPC at the start of their tenancy. The rating must be at least an E for the property to be rented.

Equity: The difference between what a property is worth and what is still owed on it.

Excluded Occupier: A tenant who shares living space with their landlord and has limited rights.

Flying Freehold: A part of one freehold property that overlaps with another’s property or land.

Freehold: Owning both a property and the land it stands on outright.

Gas Safety Certificate (GSC): A document confirming that gas appliances in a rental property are safe. 

Gazumping: The process where a seller accepts a better offer after initially agreeing with a buyer.

Gazundering: When a buyer lowers their offer just before contracts are exchanged.

Ground Rent: An annual fee paid by the leaseholder to the freeholder of a property.

House in Multiple Occupation (HMO): A property rented to multiple unrelated tenants with specific regulations.

Housing Health and Safety Rating System (HHSRS): A list of 29 hazards landlords must avoid to keep a property safe.

Improvement Notice: A council’s order for a landlord to fix safety problems in a property.

Income Tax: Tax on the profit landlords make from rent or fees.

Instruction: When an estate agent is told to put a property on the market to sell.

Inventory: A detailed report on the property’s condition, including furniture, fittings, and general condition. It’s used with the Check-In and Check-Out reports as evidence in deposit disputes.

Leasehold: Owning a property but not the land it’s built on, requiring payment of ground rent.

Legionella: Bacteria commonly found in water that causes serious illness. Landlords have a legal duty to carry out risk assessments and take steps to prevent legionella in their properties. 

Let to Buy (LTB): The process of renting out an existing property to buy a new one.

Mesne tenant: A tenant who rents a property and then sublets it to someone else.

Mid-term Inspection: A general check-up to ensure everything is going well and that the property is in good condition. It’s also an ideal opportunity for tenants to raise any issues. 

Minimum Energy Efficiency Standards (MEES): The lowest energy rating a rental property must have to be let.

Notice of Default (NOD): A legal notice sent to tenants for breaking rental terms, such as not paying rent or damage to the property.

Open Market Value (OMV): How much a property is worth if sold on the market.

Portable Appliance Testing (PAT): An examination of electrical equipment performed by a registered electrician to make sure it's safe to use. Landlords must get electrical equipment PAT tested annually or before a new tenant moves in.

Prescribed Information: Deposit details a landlord must give a tenant, including how it’s protected.

Property Portal: A website which lists properties available to buy or rent such as, Rightmove, OnTheMarket and Zoopla.

Rental Yield: The income generated from a rental property stated as a percentage of the property value. For example, if a property was bought for £350,000 and rented for £1500 per calendar month, the gross yield would be 5.14%.

Rent Increase Proposal (REIP): A landlord’s request to raise the rent during a tenancy.

Rent Smart Wales: A licensing scheme for landlords and letting agents in Wales. All landlords must be registered and licensed under this scheme.

Right to Rent (RtR): A legal requirement for landlords to verify a tenant’s immigration status before renting, ensuring they have the right to live in the UK.

Section 21 Notice (S21): A notice issued by a landlord to end a tenancy without needing a reason.

Section 24: Also known as the “Tenant Tax” or “Landlord Tax”, this clause in the Finance Act 2015 means that landlords will be taxed on all rental income, not just the profit. This will be the basic tax rate relief (20%) on their mortgage interest, effective from April 2020.

Section 8 Notice (S8): A notice to evict tenants for specific reasons like unpaid rent or property damage.

Tenancy Agreement: A legally binding document that outlines the terms of the rental agreement. Both landlord and tenant must agree to and sign this document before moving in.

Tenancy Deposit Scheme (TDS): A service protecting tenants’ deposits to make sure they get it back fairly.

Tenancy Void: The time in between tenancies where the property is empty. Ideally, landlords want to reduce their void periods to maximise their rental income.

The Property Ombudsman (TPO): An independent organisation that resolves disputes between landlords, agents, and tenants. Tenants should be given a copy of this valid certificate when they move in, and a copy of the latest certificate within 28 days of every inspection.

Utilities: Basic services like gas, electricity, water, phone-line, and broadband provided to a rental property.

Void Period: Time when a rental property is empty, meaning no rent income for the landlord. Void periods can be challenging for most letting agents as they involve handling bills and updating suppliers about occupancy changes. That’s why Veco Plus works seamlessly with Voidlink to take the hassle out of the process. Get in touch with our team at contact@veco.software to learn more.

Knowing these terms isn’t just about keeping up - it’s about standing out and positioning yourself as someone that landlords and tenants can trust. Bookmark this guide and revisit it when you need a refresher.