Glossary of renting terms

A

Additional Person Fee

A charge for every additional person to be included in the tenancy agreement.

ARLA

The Association of Residential Letting Agent, the UK’s foremost professional body for letting agents.

Arrears

Any late or unpaid rent.

Assured Shorthold Tenancy (AST) agreement

The standard tenancy agreement normally used for residential lettings.

B

Beneficiary

The individual(s) designated to receive the benefits from a policy.

Buy to Let

An investment where you buy a property – usually with a mortgage – and rent it out.

C

Check out

The process of checking a property after a tenant has vacated. Normally only done when an inventory was carried out at the start of the tenancy. The condition of the property and the contents is checked against the inventory and the report is used as evidence for the settlement of the deposit.

Council Tax

Levied by local councils to cover the cost of local amenities and services.

Critical Illness Cover

Pays out a lump sum if you are diagnosed with a specified critical illness.

Typical illnesses include:

  • Alzheimer’s Disease (before age 60)
  • Benign Brain Tumour
  • Blindness
  • Cancer
  • Coma
  • HIV - caught in the UK from a blood transfusion, physical assault or at work
  • Heart Attack
  • Kidney Failure
  • Loss of sight
  • Major Organ Transplant
  • Motor Neurone Disease
  • Multiple Sclerosis
  • Parkinson’s Disease
  • Stroke
  • Third Degree Burns
  • Total Permanent Disability

D

Death in service

Life insurance an employer provides that may be linked to a pension scheme. As cover ceases should you change jobs this is not normally suitable for mortgage protection.

Decreasing term assurance

This provides a lump sum in the event of death during the policy term. The amount of cover (sum assured) decreases over the term of the plan. This type of cover is usually used as the basis of a Mortgage Life Insurance plan to protect the declining balance of loan.

Deferred period

A period of time that has to pass before benefit from a policy is claimed. Typically Income Protection policies will have a choice of deferred periods to suit any benefit you may be eligible for from your employer.

Draft Contract

Unconfirmed version of the contract.

E

Energy Performance Certificate (EPC)

All properties let for private residential purposes must have an EPC, unless the property is Grade II Listed, It is used to report the energy performance of a property.