Guarantor: The lender may sometimes require a borrower to appoint a guarantor. These five-yearly checks are already mandatory for landlords in Scotland and those with HMOs, and are soon to be introduced to England and Wales. Until then though, deeds must still be signed in person!Įlectrical installation condition report (EICR): A report, carried out by a certified professional, confirming that all electrical installations within the property are safe to use. That said, change is afoot, with the Law Commission ruling that electronic signatures will soon be recognised on all legal documents. However, deeds – the most common being Deed of Surrender and Deed of Guarantee – should still be witnessed and signed in person. A CCJ will stay on a credit rating for six years.ĭeeds:Many documents relating to letting a property can now be entirely managed digitally, with digital signatures and online approvals being absolutely watertight. In Scotland, the process is called enforcing a debt by diligence. It will be mandatory for all agents to have Client Money Protection from April 2019.Ĭounty Court Judgement (CCJ): A CCJ is a type of court order that can be issued in England, Wales and Northern Ireland against an individual if they fail to pay money that they owe. Bailiffs are officers of the court (although many are third party contractors) and will attempt to reclaim your funds through collecting debts or repossessing goods.Ĭlient Money protection: The Client Money Protection (CMP) Scheme is a compensation scheme which provides assurance to landlords and tenants that should their letting agent mishandle their rent, deposit or other client funds, the money is protected in a securely insured scheme. The tenant still has a legal right to return and take up residence at any time and it is a criminal offence for landlords to do anything to prevent the continuation of the tenancy.īailiffs (enforcement agents): If you are recovering arrears or costs from your tenant, and have been through the official court process, you may find that you are able to instruct bailiffs to enforce the debt. One restriction includes the prevention of family homes being changed into an HMOs – not ideal if your business model requires the income of an HMO!Ībandonment: Not a scenario any landlord hopes to find themselves in, abandonment occurs when a tenant moves out of a property before the tenancy has ended, without informing their landlord. ![]() We’ve covered some of the more basic here, but let's explore some of the trickier terminology that you may not come across quite so often…Īrticle 4 Direction: A planning limitation put in place by the local planning authority and designed to restrict the scope of permitted developments, an article 4 directive can have a real impact on landlords. Not only is there an ever-changing whole new set of rules to understand, you’ve also got a whole new language to learn as well.īut speaking the language of lettings needn’t be hard, as long as you understand the basics. ![]() Whether you’re just starting out in the rental game, or a long-standing professional, it can be a confusing business. Landlord Lingo - An A to Z of must know terms
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