Fair Wear and Tear

If a tenant leaves without notice or leaves belongings, follow legal steps before re-entering. Declaring abandonment without a court order is unlawful.

The process used by tenancy deposit schemes to resolve disputes between landlords and tenants over deductions. It is free, independent, and legally binding.

Allowable landlord expenses. Deduct repairs, insurance and agent fees before tax. Costs must be ‘wholly and exclusively’ for running the rental property.

A free service provided by deposit schemes to settle disputes without going to court. It is quicker and less costly than formal legal proceedings.

The common type of tenancy in E&W, giving tenants the right to occupy for a fixed term or periodically. Landlords gain possession via Section 21 or 8 notices.

A tenancy type granting stronger rights to tenants, mainly used before 1997. Landlords can only regain possession on specific statutory grounds.

The all-in-one property management software for self managing landlord and their tenants to track rent, tasks, compliance, store documents and stay organised.

A clause in a tenancy agreement allowing either landlord or tenant to end the tenancy early. It must be clearly worded and correctly served to be enforceable.

Buildings insurance covers a rental’s structure (walls, roof, floors) and fixtures against fire, flood, storm or subsidence. Often required by bank lenders.

A mortgage designed for properties rented to tenants rather than lived in by the owner. They often have higher interest rates and stricter lending criteria.

Tax paid on profit when selling a rental property that has increased in value. Landlords must report and pay within set deadlines.

UK law requires CO alarms in rooms with solid-fuel appliances. Since Oct 2022 this extends to gas appliances in rented homes. Landlords must fit and maintain.

An inventory is created at the tenancy start to record a property’s condition and contents, providing clear evidence to protect landlords in deposit disputes.

Taken when tenants leave, a check-out report records the property’s final condition against check-in. It’s essential evidence for fair deposit claims.

Permission required from a mortgage lender before renting out a property. Letting without it can breach mortgage terms.

Deposit Protection Service (DPS). One of three approved schemes in England & Wales. Landlords must protect deposits within 30 days. See MyDeposits, TDS.

Damage or disrepair caused by tenants beyond fair wear and tear. Landlords may claim costs for this from the deposit.

Electrical Installation Condition Report (EICR). It's a formal document that assesses the safety and condition of electrical installations in a property.

EPC stands for Energy Performance Certificate. It's a document that rates a property's energy efficiency and environmental impact.

The legal process of regaining possession of a property from tenants. It can only be done through proper notice and, if necessary, a court order.

A legal application made to a court by one party without notifying the other. Rare in landlord-tenant law but can arise in urgent possession matters.

The natural deterioration of a property or its contents through normal use. Landlords cannot claim deposit deductions for this.

A tenancy lasting a set period, such as six or twelve months. It provides stability but limits flexibility until the end date unless a break clause applies.

Forfeiture is a landlord’s right to end a lease for breach. Mainly used in commercial property. In residential, possession is usually via Section 8 or 21.

For rentals with gas appliances, flues or pipework. Must be by a Gas Safe engineer and given to tenants within 28 days of check or before they move in.

Statutory reasons under the Housing Act to seek possession using Section 8. Some are mandatory, eg major rent arrears, others discretionary.

A person who agrees to cover rent or damages if the tenant fails to pay. Guarantors often sign a legally binding agreement alongside the tenancy.

An HMO is a rental where 3+ unrelated tenants share facilities. Requires licensing and must meet strict safety and space standards set by local councils.

The system councils use to assess housing conditions and hazards. If risks are serious, they can issue enforcement notices to landlords.

A tax on the estate, including rental property, when a landlord passes away. Planning can reduce exposure, for example through trusts or spousal exemptions.

A detailed list of the property’s fixtures, fittings, and furnishings with photographs. It supports deposit protection and avoids disputes.

A tenancy where two or more tenants share equal responsibility for rent and obligations. If one tenant leaves or defaults, the others remain liable.

Specialist landlord cover, protecting against risks including property damage, liability claims, & rent loss. Standard home insurance is not usually sufficient.

Local schemes requiring landlords of all properties in a defined area to obtain a licence. They aim to tackle poor housing conditions and anti-social behaviour.

HMRC’s move to digital tax reporting. Landlords with income over set thresholds must keep digital records and file via approved software.

A process where an independent third party helps landlords and tenants resolve disputes. It can be faster and cheaper than going to court.

Mortgage interest used to be fully deductible, but since April 2020 landlords receive a 20% tax credit instead. This is part of the Section 24 tax changes.

MyDeposits. One of three government-approved deposit protection schemes. Choose custodial or insurance-backed protection. See also DPS and TDS.

The minimum amount of time a landlord or tenant must give before ending a tenancy. It depends on the tenancy type and the reason for ending it.

A tenancy that rolls on weekly or monthly once a fixed term ends without renewal. It continues until either party serves notice.

Testing electrical appliances for safety. While not a legal requirement, landlords are expected to ensure supplied appliances are safe.

Specific details landlords must give tenants about their deposit protection. Failure to do so can block Section 21 eviction and lead to penalties.

The Property Ombudsman is a free UK complaints service for landlords and tenants. Letting agents must be members. Landlords may engage via their agent.

A tenant’s right to live in the property without unnecessary disturbance from the landlord. Landlords must give notice before visits and respect tenant privacy.

Rent owed by tenants that has not been paid on time. Persistent arrears are a common reason for possession claims.

A policy covering lost rent if tenants fail to pay. It may also cover legal costs for eviction proceedings.

A tribunal order requiring landlords to repay rent (or Housing Benefit/Universal Credit) if they breach certain laws, such as operating without a licence.

Rent-to-rent is where a person or company leases a property, then sublets to tenants. It demands strong contracts and compliance checks.

The return on investment calculated by annual rental income divided by property value. It helps landlords compare profitability across properties.

Landlords must check all adult tenants’ right to rent in the UK. Verify and copy ID (passport/visa) before letting, and repeat for time-limited status.

Section 21 is a “no-fault” notice letting landlords end an AST with 2 months’ notice (not in first 4 mths). Being phased out under the Renters’ Rights Bill.

Tax changes from 2015 that restricted mortgage interest relief, reducing net profits for many landlords. It is a key consideration in buy-to-let viability.

Section 8 notice is an eviction notice for serious breaches. E.g. significant rent arrears, property damage, antisocial behaviour, or illegal activity.

Laws requiring landlords to install smoke alarms on every floor of a rental property. They must be tested at the start of each tenancy.

Stamp Duty Land Tax (SDLT) is a tax payable when purchasing property. Landlords often pay a higher “additional property” rate.

The automatic rolling tenancy that arises when a fixed-term AST expires and no new agreement is signed. It follows the same terms as the previous agreement.

When a tenant rents out all or part of the property to someone else. It usually requires landlord consent.

A legal contract between landlord and tenant outlining rights and obligations. Most commonly an Assured Shorthold Tenancy in England and Wales.

Tenancy Deposit Scheme (TDS) is 1 of 3 approved deposit protection schemes. Offers custodial and insurance-backed options. See MyDeposits and DPS.

Tenants’ contents insurance protects personal belongings against theft, fire, accidental damage and loss; it excludes the landlord’s fixtures and fittings.

Tenant Fees Act bans most upfront tenant charges. Landlords and agents may only levy permitted fees like rent, deposits and breach costs. Penalties apply.

The part of Universal Credit intended to cover rent. Landlords may sometimes be paid directly if tenants are in arrears.

Times when a property is empty between tenancies. They mean loss of rent and often extra costs for landlords.

The inevitable decline in property condition from everyday use. Landlords cannot make deposit deductions for this.

When a tenant refuses to pay rent, often citing disrepair. It is usually unlawful unless ordered by a court.

An alternative to cash deposits, where tenants pay a non-refundable fee or insurance premium. It can speed up lets but leaves tenants with ongoing liability.