Renting Glossary for Property Owners
Confused by industry jargon? Our guide to renting terms will help you stay informed as a property owner!
Renting Glossary: Key Terms Every Property Owner Should Know
It can be tricky to keep up with the ever-changing jargon of the rental industry. To help you stay ahead of the curve, we’ve put together this comprehensive glossary on key terms every property owner should know!
Why Should You Understand Renting Terms
Whether you own a rental property or are looking for one, understanding the language of renting is key to making informed decisions. New property owners should be especially aware of the terms related to their investment – as this knowledge can help protect them from potential financial risk.
Here are some other reasons why you should know the language of renting:
Be able to intelligently negotiate lease agreements
Understanding various rental jargon allows you to ask the right questions so you’re always informed and making decisions best for your rental property. It can help you avoid costly misunderstandings and potential legal issues.
Stay up-to-date on rental laws and regulations
The rental laws and regulations are constantly changing, so staying on top of the latest terms can help you stay compliant. Knowing industry-specific words can also help you understand when and where to make changes.
Protect your investment – and yourself
By understanding the language of renting, you can protect your rental property from potential legal issues. Knowing all the terms and phrases will help you make the best decisions and ensure you’re always compliant with local laws.
Understand your rights as a property owner
Knowing the relevant terms will allow you to better defend yourself if a dispute arises between you and a tenant. It can also help you understand your rights and responsibilities as a property owner so that you’re always taking the necessary steps to protect yourself.
Be aware of your tenant’s rights
It’s important to remember that tenants also have rights, and understanding these terms will help you respect and comply with those rights. Understanding how to handle your tenant’s rights can also help you maintain a good relationship with your tenants and ensure that any potential issues are handled correctly.
By understanding rental terminology, you can make informed decisions about your investments while protecting yourself from potential financial risks. Whether you’re a seasoned property owner or just starting out, understanding rental terms and phrases will be invaluable to your success!
Key Renting Terms and Jargon You Should Know
Now, let’s take a look at some of the most commonly used rental terms you need to know. From rental agreement terms to essential phrases, you’ll be well-equipped with the knowledge you need!
Abandonment
When a tenant leaves the rental property without giving proper notice or without any intention of returning. Abandonment may have implications for both the tenant and the landlord, and specific procedures must be followed according to state or territory laws.
Bond
Also known as a security deposit, it is a sum of money paid by the tenant at the beginning of the tenancy as a form of protection for the landlord against any potential damage to the property.
You can read more about Bond here.
Breach Notice
A written notice issued by either the landlord or the tenant to address a breach of the tenancy agreement or lease terms. A breach notice informs the other party of the violation and provides a period for rectifying the issue.
Read more about Breach Notices here.
Break Lease
When a tenant ends a fixed-term tenancy before the agreed-upon end date. Breaking a lease typically incurs penalties or financial obligations, such as paying rent until a new tenant is found or reimbursing the landlord for advertising costs.
Read about what to do if your tenant wants to break the lease.
Condition Report
A document completed by both the landlord and the tenant at the beginning of the tenancy detailing the condition of the property and any existing damage. It serves as a reference point for assessing any potential changes or damages at the end of the tenancy.
Click here to learn more about Condition Reports.
Eviction
The legal process of removing a tenant from a rental property due to a breach of the lease agreement, non-payment of rent, or other reasons specified by the Residential Tenancies Act. Eviction must follow specific procedures outlined by the relevant state or territory legislation.
Fair Wear and Tear
The acceptable deterioration of a rental property occurs over time with normal use. Fair wear and tear is distinct from damages caused by tenant negligence or intentional actions and is not the tenant's financial responsibility.
Click here to learn more about Fair Wear and Tear vs Property Damage.
Fixed Rent Increase
An increase in the rent amount charged by the landlord after a fixed-term lease expires. The conditions for rent increases, including notice periods and limitations, are outlined in the Residential Tenancies Act.
Fixed-term Tenancy
A lease agreement that specifies a definite period, often six or twelve months, during which the tenant has the right to occupy the property. The terms and conditions of the tenancy cannot be altered unless both parties agree.
Head Tenant
The primary tenant who enters into the tenancy agreement with the landlord. The head tenant may then sublet the property to one or more subtenants.
Holding Deposit
A sum of money paid by prospective tenants to secure a rental property while their application is being processed. If the application is successful, the holding deposit is typically put towards the bond or the first month's rent. If the application is unsuccessful, the holding deposit is refunded.
Key Money
A prohibited practice where a landlord demands an additional payment from the tenant in exchange for providing keys to the rental property. Key money is not legal in most jurisdictions in Australia.
Lease
A legally binding contract between the landlord and the tenant that outlines the terms and conditions of the tenancy, such as the duration of the lease, rent amount, and responsibilities of both parties.
Move-Out Notice
A written notice provided by the tenant to the landlord that they are planning to move out of the rental property. It should include details such as the date of departure, the forwarding address, and any requests for a security deposit refund.
Notice of Entry
A written notice provided by the landlord or property manager to the tenant, informing them of the intention to enter the rental property for specific reasons, such as inspections, repairs, or property viewings. The notice period and requirements vary depending on state or territory regulations.
Notice of Rent Increase
A written notice provided by the landlord to the tenant, informing them of an upcoming increase in the rent amount. State or territory laws specify the notice period and limitations on rent increases.
Notice to Vacate
A written notice given by either the landlord or the tenant to terminate the tenancy and specify the intended date of vacation. The required notice period may vary depending on the circumstances and the state or territory laws.
Pet Bond/Pet Agreement
In some cases, landlords may require an additional pet bond or a separate agreement to allow tenants to keep pets in the rental property. These agreements may specify responsibilities related to pet care, damage caused by pets, and cleaning requirements. Read our guide to learn more about pet agreements.
Periodic Tenancy
A tenancy agreement that continues on a week-to-week or month-to-month basis after the initial fixed-term lease has expired. It offers greater flexibility for both the landlord and the tenant, allowing for easier termination or modification of the lease terms with proper notice.
Rent
The amount of money the tenant pays the landlord at regular intervals, typically monthly, for the right to occupy the rental property.
Rent Arrears
When a tenant fails to pay the rent on time or falls behind in rental payments, they are said to be in rent arrears. The specific rules and procedures for dealing with rent arrears may vary depending on state or territory laws.
Rental Application
A form completed by prospective tenants that provides information about their background, employment, references, and other relevant details. It helps landlords assess the suitability of applicants for their rental property.
Rent Increases
Occasionally, you may need to increase the rent during a tenancy due to increases in the cost of living. Rent increases are subject to state or territory laws and must be in accordance with the lease agreement.
Rental Ledger
A record or statement that tracks the tenant's rent payments and any outstanding balances. The rental ledger provides a clear overview of the tenant's payment history and can be used as evidence in case of disputes or rent arrears.
Rental Tribunal/Court
A specialised tribunal or court that handles disputes and conflicts between landlords and tenants. These bodies provide a forum for resolving issues such as rent disputes, repairs and maintenance disputes, or breaches of tenancy agreements.
Repairs and Maintenance
Your responsibility to maintain the rental property in a habitable condition. This includes repairing faulty appliances, fixing structural issues, and addressing health or safety concerns. Tenants are generally responsible for reporting maintenance issues promptly.
Residential Tenancies Act
Legislation that governs the rights and obligations of landlords and tenants in residential tenancies. Each state and territory in Australia has its own Residential Tenancies Act, so it's important to be familiar with the relevant legislation for your location.
Routine Inspection
A periodic inspection conducted by the landlord or property manager to assess the condition of the rental property and ensure that the tenant complies with the lease's terms. The specific frequency of routine inspections may vary depending on state or territory laws. Check out the routine inspection guide to learn more.
Subletting
When a tenant rents out part or all of the rental property to another person, known as a subtenant. Subletting may require the landlord's permission and is subject to the terms outlined in the lease agreement.
Subtenant
A person who rents part or all of a rental property from the head tenant. The head tenant remains responsible for the obligations under the original tenancy agreement with the landlord.
Tenancy Agreement
A legally binding contract between the landlord and the tenant that outlines the rights and obligations of both parties. It includes details such as the rent amount, lease duration, repairs and maintenance responsibilities, and special conditions.
Termination Notice
A written notice provided by either the landlord or the tenant to terminate the tenancy due to specific reasons, such as non-payment of rent, breach of lease terms, or other violations. The required notice period and conditions for termination vary by state or territory.
Unfurnished vs. Furnished
Refers to the state of the rental property. An unfurnished property does not have furniture or appliances, while a furnished property is equipped with basic furniture and necessary appliances. The lease agreement should specify whether the property is furnished or unfurnished.
Utilities
Services such as electricity, water, gas, and trash removal are usually provided at the tenant's expense. The landlord may include some utilities in the rent, such as water and trash removal.
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At RentBetter, we make it easier for you to rent your properties with confidence and success. With our property management platform you can take the stress out of renting and focus on building your future. Get started today!
