Property management glossary

Apportionment

The proportion of a charge that each unit pays. Set out in the lease and modelled in PropLink as a lease schedule.

Assured shorthold tenancy (AST)

The standard private residential tenancy under the Housing Act 1988. Being replaced by periodic tenancies under the Renters Rights Act.

Block management

Managing leasehold residential blocks. The agent collects service charges, instructs contractors, prepares year-end accounts and corresponds with leaseholders.

Decent Homes Standard

The statutory standard for housing condition, being extended to the private rented sector by the Renters Rights Act.

Directors (RMC)

Directors of a Resident Management Company, who are leaseholders elected to manage the company that owns or operates the freehold.

Estate management

Managing the shared infrastructure of a development (gardens, roads, gates, communal lighting). Often involves estate rent charges rather than service charges.

First-tier Tribunal (Property Chamber)

The tribunal that hears leasehold disputes, including challenges to service charges, lease enfranchisement and right to manage.

Forfeiture

The freeholder's right to take back a flat for breach of lease. Heavily restricted in modern law and rarely used.

Freeholder

The owner of the freehold. In a block of flats, holds the building subject to the leaseholders' rights.

Golden Thread

The structured, accurate, accessible information about a high-risk building required under the Building Safety Act 2022.

Ground rent

The rent a leaseholder pays the freeholder for the land. Restricted to a peppercorn on most modern leases.

Headlease

A lease granted by the freeholder, often under which sub-leases are granted to individual flats.

High-risk building (HRB)

A residential building at least 18 metres or 7 storeys with 2 or more residential units, subject to the Building Safety Act 2022.

HMO (House in Multiple Occupation)

A property let to multiple unrelated tenants sharing facilities. Subject to licensing in most areas.

Leaseholder

The holder of a long lease (typically 99, 125 or 999 years).

Leasehold reform

The ongoing programme of legislation reducing leaseholders' exposure to high ground rents and improving their rights to extend leases or buy the freehold.

Major works

Significant works to a building such as roof renewal or external decoration, usually subject to Section 20 consultation.

Managing agent

A firm appointed by the freeholder, RMC or RTM company to handle day-to-day management.

Peppercorn rent

A nominal ground rent of effectively zero, used on modern leases under the Leasehold Reform (Ground Rent) Act 2022.

Principal Accountable Person (PAP)

The person legally responsible for the safety of an HRB under the Building Safety Act 2022.

Reserve fund

Money collected from leaseholders over time to spread the cost of major works. Sometimes called a sinking fund.

Resident Management Company (RMC)

A company, often of leaseholders, that manages a block. Frequently named on the original lease.

Right to Manage (RTM)

The statutory right of leaseholders to take over management of their block from the freeholder, without compensation.

Section 20

The consultation procedure under the Landlord and Tenant Act 1985 required before incurring qualifying expenditure above the statutory threshold.

Section 21

The no-fault eviction notice for ASTs, abolished by the Renters Rights Act.

Section 166

The notice required before recovering ground rent under the Commonhold and Leasehold Reform Act 2002.

Service charge

The money leaseholders pay towards the running of their building.

Sinking fund

Another term for reserve fund.

Surrender

The mutual ending of a lease or tenancy.

Tenant

A person renting a property under a tenancy (rather than holding a long lease). The Renters Rights Act distinguishes from leaseholder.

UPRN

Unique Property Reference Number, the UK address authority's identifier for every addressable property.