Letting Glossary

Why a Letting Glossary Matters in Wales

A Letting Glossary matters because unclear language can create avoidable confusion. Renters may see a property advertised as “student-friendly”, “fully managed” or “bills included” without understanding exactly what those phrases mean. Landlords may encounter terms such as “fundamental terms”, “prescribed information” or “fitness for human habitation” without knowing how they affect their duties. A shared vocabulary makes it easier to compare properties, understand contracts and communicate clearly with an agent.

Wales has its own renting framework. Since 1 December 2022, most people renting a home in Wales have had an occupation contract rather than a traditional tenancy. The person renting is called a contract-holder, and the person letting the property is the landlord. This distinction is important because Welsh law sets out particular rights and duties for written contracts, deposits, repairs, safety and possession.

How to use this glossary

This Letting Glossary is organised by theme: people and agreements, money, property condition, safety and shared housing. Each entry gives a short definition and explains why it matters in practice. If a term appears in a contract, check how it is defined there, because additional terms can sometimes give a word a more specific meaning.

• For renters: use it to understand adverts, contracts, deposits and safety documents.
• For landlords: use it to identify the documents, checks and responsibilities associated with letting a home.
• For shared households: use it to clarify HMO rules, bills, communal areas and joint responsibilities.

People, Contracts and Agreements

The most important terms in a Letting Glossary relate to the people involved and the agreement between them. In Wales, the legal language differs from England, so it is useful to understand the modern terms before reading a contract or speaking with an agent.

Landlord

A landlord is the person or organisation entitled to possession of a rented property and responsible for letting it. In Wales, the landlord must register with Rent Smart Wales and comply with safety, repair and contract obligations. Where an agent manages the property, the landlord remains responsible for ensuring that the arrangement is compliant and that the property meets required standards.

Contract-holder

A contract-holder is the Welsh legal term for someone who occupies a property under an occupation contract. It replaces the more familiar term “tenant” in most Welsh residential letting contexts. A contract-holder has rights set out in the occupation contract and Welsh law, including rights relating to the written contract, repairs and deposit protection.

Occupation contract

An occupation contract is the Welsh equivalent of a tenancy agreement for most residential lets. It sets out the rights and obligations of the landlord and contract-holder. A standard occupation contract is the default form used for most private residential lets in Wales, and it must be provided in writing.

Written statement

A written statement is the document that sets out the occupation contract. For most new occupation contracts, the landlord must provide it within 14 days of the occupation date. It should include fundamental terms, supplementary terms and any additional terms agreed between the parties.

Fundamental and supplementary terms

Fundamental terms are core legal terms that cannot simply be removed, such as the landlord’s repair obligations and the process for ending the contract. Supplementary terms cover practical matters such as access for inspections, rent payment, reporting repairs and use of communal areas. Additional terms may be agreed where permitted, but they must not conflict with the law.

Letting agent

A letting agent is a business that carries out letting or management work on behalf of a landlord. This can include marketing, viewings, referencing, preparing contracts, collecting rent, arranging repairs and conducting inspections. In Wales, an agent carrying out relevant letting or management work must be licensed by Rent Smart Wales.

Money, Deposits and Fees

Financial vocabulary is another essential part of a Letting Glossary. Renters should understand exactly what they are being asked to pay, when payment is due and what protections apply. Landlords should understand which charges can be passed to renters and which must be borne by the landlord or agent.

Rent

Rent is the regular payment made by the contract-holder for the right to occupy the property. It is usually paid monthly, although other arrangements can be agreed. The occupation contract should state the rent amount, payment date and method of payment.

Security deposit

A security deposit is money held as protection against unpaid rent or damage beyond fair wear and tear. In Wales, it must be protected with a government-approved tenancy deposit scheme within 30 days of the landlord or agent receiving it. The contract-holder must also receive prescribed information about the protection arrangement.

Holding deposit

A holding deposit is a payment made to reserve a property while references, contracts or other checks are completed. It is different from a security deposit. Before paying one, a renter should ask for written confirmation of the amount, what it reserves, whether it is refundable and the circumstances in which it could be retained.

Permitted payments

Permitted payments are the limited payments that a landlord or agent can require from a renter under the Renting Homes (Fees etc.) (Wales) Act 2019. They include rent, a security deposit, a holding deposit, certain default payments and payments connected with council tax, utilities, a television licence or communication services. Most other letting fees, such as administration, referencing or renewal fees, are prohibited for renters in Wales.

Bills included

“Bills included” means that some or all household utility costs are included in the rent. This may cover gas, electricity, water, internet or a television licence, but the exact arrangement varies. Renters should ask for a written list of included bills, any fair-use limits and what happens if usage exceeds an agreed cap.

Arrears

Arrears means rent that is overdue. If a payment problem arises, the contract-holder should contact the landlord or agent promptly and keep a record of the discussion. Landlords and agents should follow the correct contractual and legal process rather than taking informal action.

Property Condition, Safety and Shared Housing

Property-related vocabulary helps both sides understand what standards apply and what documents should be available. A Letting Glossary should make these terms clear because they often affect health, safety and deposit disputes.

Fitness for human habitation

Fitness for human habitation means that a home is safe and suitable to live in. It takes account of matters such as damp, mould, ventilation, heating, water supply, sanitation, structural condition and serious hazards. A landlord must ensure that a property is fit for habitation and maintain it appropriately during the occupation.

EPC

An EPC, or Energy Performance Certificate, rates a property’s energy efficiency from A to G. It also includes recommendations for improving efficiency. A valid EPC is normally required when a property is marketed for sale or let, and privately rented homes must generally meet the applicable minimum energy efficiency standard.

EICR

An EICR, or Electrical Inspection Condition Report, assesses the safety of a property’s fixed electrical installation. It is carried out by a qualified electrician. The report should be provided to the contract-holder within 14 days of them moving in, or within 14 days of a new report being obtained.

Gas safety record

A gas safety record, often called a gas safety certificate, is produced after an annual check of gas appliances and flues by a Gas Safe registered engineer. Where a rental property has gas appliances, the landlord must ensure that the check is completed and retain the record.

Smoke and carbon monoxide alarms

Smoke alarms detect fire, while carbon monoxide alarms detect carbon monoxide from certain fuel-burning appliances. In Wales, rental homes must have working smoke alarms on each storey used as living accommodation, and carbon monoxide alarms are required in rooms with relevant gas, oil or solid-fuel appliances.

HMO

An HMO, or house in multiple occupation, is a property occupied by people who form more than one household and share facilities such as a kitchen or bathroom. Many student houses are HMOs. Depending on the number of occupants, households and storeys, an HMO may require a licence from the local authority.

Inventory and check-in report

An inventory or check-in report records the condition and contents of a property at the start of an occupation. Photographs, notes and meter readings can help prevent disputes at the end of the occupation. Both the landlord and contract-holder should keep a copy.

Fair wear and tear

Fair wear and tear is the normal deterioration that occurs through everyday use. It is not the same as damage caused by neglect, misuse or accidents. This distinction is often relevant when a landlord considers whether a deposit deduction is justified at the end of an occupation.

Rent Smart Wales

Rent Smart Wales is the Welsh Government scheme responsible for landlord registration and licensing. Landlords must register themselves and their rental properties, while those who carry out letting or management work must hold the appropriate licence. The scheme also provides guidance on renting homes safely and lawfully in Wales.

How to Use a Letting Glossary When Renting

A Letting Glossary is most useful when combined with careful document review. Before viewing a property, use the glossary to understand what an EPC, EICR or HMO licence means. Before signing, check the written occupation contract for rent, deposit, repairs, notice and additional terms. After moving in, use it to understand inventory records, safety alarms and maintenance responsibilities.

For landlords, the glossary can act as a compliance prompt. It highlights the difference between registration and licensing, the importance of deposit protection, and the need to keep safety documentation up to date. For renters, it helps identify the questions worth asking before paying a holding deposit or signing a contract.

2Let2 Cardiff is a full-service lettings agency serving landlords and renters in Cardiff. A clear shared vocabulary can make property viewings, contract discussions and maintenance requests easier for everyone involved. As always, the written occupation contract and official Welsh guidance are the definitive sources for a specific letting arrangement.

Frequently Asked Questions

This Letting Glossary helps Cardiff renters and landlords understand common rental terms, making contracts, property documents and conversations with agents easier to navigate.