Buy-to-let jargon buster

Accidental landlord - unexpectedly owning and renting out a property through circumstance, such as inheritance

Assured shorthold tenancy - residential agreement between tenants and landlords stating the terms for living in a rental property

Buy-to-let mortgage - a loan for purchasing a property to rent out to tenants on a long-term basis

Electrical Safety Regulations - requires landlords to ensure the property’s electrics are inspected by a qualified professional and are properly maintained 

Energy Performance Certificate (EPC) - rates a property’s energy efficiency between A (most efficient) and G (least efficient)

Gas Safety Check - a yearly inspection to ensure the safety of all gas appliances and flues in rental properties

Gross rental yield - annual income calculated using the price of the property and the income it generates

Holiday let mortgage - a loan for purchasing a property to let out to tourists on a short-term basis

House in Multiple Occupation (HMO) - a property rented out by three or more unrelated tenants, sharing facilities such as a kitchen/bathroom

Landlord - an individual who rents out the property they own to tenants for a monthly fee

Landlord inventory - a document recording the condition/contents of a rental property at the start and end of a tenancy

Letting agent - a third party company that helps landlords find and manage tenants in rental properties

Let-to-buy - allows homeowners to rent out their current property in order to purchase a new one

Long let - a rental agreement with a longer term (usually six months or more)

Mortgage Payment Protection Insurance (MPPI) - covers mortgage payments in the event of illness

Non-Resident Landlord Scheme - requires letting agents/tenants to withhold tax on the UK rental income of landlords residing outside of the UK

Portfolio landlord - an individual owning four or more buy-to-let mortgaged properties

Rental arrears - unpaid rent owed to the landlord by the tenant

Right to rent - a legal requirement for landlords to verify tenants’ immigration status before letting out a property to them

Section 21 - an eviction notice issued by the landlord instructing tenants to vacate the property by a specific date

Short let - a rental agreement with a shorter term (usually one week to six months)

Stamp Duty Land Tax - a tax paid by landlords when purchasing a property for rental purposes

Sublet - when an existing tenant rents out all/part of the property to another individual

Student let - a rental arrangement where a property is exclusively let out to students, often near universities/colleges

Tenancy agreement - a contract between a tenant and a landlord, outlining the terms and conditions of the lease

Tenancy void - a period of time where a rental property is vacant/not occupied by tenants

Tenants Fees Act - legislation prohibiting landlords/letting agents from charging certain fees to tenants

Tenants Deposit Scheme - requires landlords to place tenants’ deposits in a government-approved scheme for protection

Wear and tear - the gradual deterioration of furnishings and fixtures caused by everyday usage over time