Common Lettings Jargon Explained

A Simple Guide for Scottish Tenants and Landlords

Whether you’re renting your first property or letting out a home for the first time, the world of property can be full of unfamiliar terminology. Understanding the most common lettings jargon can help make the renting process much less confusing.

Here’s a guide to some of the terms you’re most likely to come across during a tenancy in Scotland.

Tenancy Agreement

A tenancy agreement is the legal contract between the landlord and the tenant. It outlines each party’s rights and responsibilities, including the rent amount, payment dates, notice periods, and any conditions of the tenancy.

Deposit

A tenancy deposit is money paid by the tenant before moving into the property. It acts as security for the landlord against damage, unpaid rent, or breaches of the tenancy agreement.

In Scotland, all tenancy deposits must be lodged with an approved Tenancy Deposit Protection Scheme within 30 working days of the tenancy starting. At the end of the tenancy, the deposit is returned to the tenant, provided the property has been left in an acceptable condition, and there are no outstanding costs.

Inventory

An inventory is one of the most important documents in a tenancy. It provides a detailed record of the property’s condition, cleanliness, furniture, fixtures, fittings and contents at the start of the tenancy.

The inventory protects both landlords and tenants by providing evidence of the property’s condition before the tenant moves in.

Check-In

A check-in takes place at the beginning of the tenancy. During this process, the tenant is given access to the property and the inventory is used to confirm the condition of every room and item.

Tenants should carefully review the inventory and report any discrepancies as soon as possible.

Check-out

The check-out inspection is carried out once the tenancy has ended and the tenant has returned all keys.

The property’s condition is compared against the original inventory and check-in report. A check-out report records any changes, damage, missing items or cleaning issues and helps determine whether the tenant’s deposit can be returned in full.

Fair Wear and Tear

Fair wear and tear refers to the natural deterioration that occurs through normal day-to-day use of a property over time.

Examples include minor carpet wear, faded paintwork from sunlight, or slight scuff marks on walls.

Damage caused by neglect, accidents, or misuse is not considered fair wear and tear and may result in deductions from the tenant’s deposit.

Pro Rata Rent

Pro rata rent simply means paying rent for part of a rental period rather than a full month.

For example, if a tenancy begins halfway through the month, the first rent payment may only cover the days the tenant occupies the property before the next full rental payment is due.

Guarantor

A guarantor is someone who agrees to be legally responsible for the tenant’s rent or other financial obligations if the tenant is unable to meet them.

Guarantors are often requested where a tenant has limited credit history or income.

Notice Period

The notice period is the amount of notice required to end a tenancy.

For most Private Residential Tenancies (PRTs) in Scotland, a tenant can end their tenancy by giving 28 days’ written notice to their landlord or letting agent.

Landlords have different notice requirements and must have one or more of the legal grounds for ending a tenancy. Depending on the reason for ending the tenancy and how long the tenant has lived in the property, the notice period the landlord must give may be longer.

Rent Arrears

Rent arrears simply mean that rent has not been paid when it is due. If rent falls into arrears, tenants should contact their landlord or letting agent as soon as possible to discuss the situation before it escalates.

Energy Performance Certificate (EPC)

An Energy Performance Certificate (EPC) measures how energy efficient a property is and gives it a rating from A (most efficient) to G (least efficient).

Landlords must provide tenants with a valid EPC before a tenancy begins.

Gas Safety Certificate

If the property has gas appliances, the landlord must arrange an annual gas safety inspection, carried out by a Gas Safe registered engineer. A copy of the Gas Safety Certificate should be provided to the tenant.

Electrical Safety Certificate (EICR)

An Electrical Installation Condition Report (EICR) confirms that the property’s fixed electrical installation has been inspected and is safe. Landlords in Scotland are required to have the electrical installation inspected at least every five years.

Portable Appliance Testing (PAT)

Portable Appliance Testing (PAT) involves checking electrical appliances supplied by the landlord, such as kettles, toasters and lamps, to ensure they are safe to use. These appliances are inspected as part of the landlord’s electrical safety obligations.

Smoke and Heat Alarms

Scottish rental properties must meet the required standards for interconnected smoke alarms, heat alarms and carbon monoxide detectors where applicable. These alarms help protect tenants and are a legal requirement.

Routine Inspection

Many landlords or letting agents carry out routine inspections during the tenancy to ensure the property is being looked after and to identify any maintenance issues before they become more serious.

Joint Tenancy

A joint and severally liable tenancy is where two or more tenants rent the same property together. Each tenant shares responsibility for paying the rent and complying with the tenancy agreement.

Standing Order

A standing order is an instruction given by the tenant to their bank to pay rent automatically on the same date each month. This helps ensure rent is paid on time.

The information and opinions contained in this blog are for information only.  They are not intended to constitute advice and should not be relied upon or considered as a replacement for advice.  Before acting on any information contained in this blog, please seek solicitor’s advice from Gilson Gray.