Accounts
Accounts are used to record the additions or deductions for each Asset, Liability, Equity (Capital) and Income & Expense category.

Assets
Assets are items that are owned and used in a business.

Assured Shorthold Tenancy ( AST )
The Assured Shorthold Tenancy, or AST, is the most common type of tenancy in the private rental sector.

Balance Sheet
Balance Sheet is a statement of the financial position of a business at a specific point in time. The balance sheet is divided into three sections; assets, liabilities and owners’ equity. (Assets = Liabilities + Equity)

Bookkeeping
Bookkeeping/book-keeping/book keeping is the recording of all financial transactions undertaken by an individual, group or company.

A Bookkeeper
Bookkeeper/book-keeper is a person who records the day-to-day financial transactions of a business.

BMV ( below market value )
BMV is commonly used abbreviation for ‘below market value’.

BTL (Buy to Let)
BTL is commonly used abbreviation for ‘buy-to-let’.

Capital Account
Capital account, is the section of the balance sheet showing the investors’ or shareholders’ equity.

Cash flow
Cash flow is the balance of the amounts of cash being received and paid by a business during a defined period of time,

Debits and Credits
Debit and Credit are formal accounting terms used to keep track of money movements (transactions) into and out of an account.

Double entry bookkeeping
Double entry bookkeeping is the recording of each transaction in at least two accounts with at least one account being debited and at least one account being credited and the result must be equal i.e. debits must equal credits.

Drawings
Drawings is the money withdrawn from the business for the owners personal use.

EPC
EPC stands for Energy Performance Certificate.

Equity
Equity is the net worth of the business or property.

Expenses
Expenses are the costs incurred in running the business.

Fixed Asset
Fixed Asset is an asset that is expected to remain with the business for more than a year.

Gross Profit
Gross Profit is the excess of income after deduction of directly related expenses.

HMO ( house of multiple occupation )
HMO is commonly used abbreviation for ‘house of multiple occupation’.

Landlord
Landlord is the owner of a property which is rented to a tenant by agreement.

Liabilities
Liabilities are amounts that are owed to others outside the business.

LTV (Loan To Value)
LTV is commonly used abbreviation for Loan to Value

Mortgage
A mortgage is the pledging of a property as security for the loan that the lender makes to the borrower.

Mortgage Lender
Mortgage lender (Mortgagee) provides the large sum of money involved in financing a property purchase.

Mortgagor/Borrower
Mortgagor/Borrower will typically be the individual home-owners, landlords or businesses who are purchasing property by way of a loan.

Net Profit
Net Profit is excess of income less deduction of all allowable business expenses.

Net worth
Net worth is owners equity in business.

Online bookkeeping
Online bookkeeping is web-based software which allows remote access for investors, bookkeepers and accountants to record financial transactions.

Profit & Loss Account
Profit and Loss Account is a financial statement of income and expenditure and indicates whether money has been made or lost during the period being reported.

Property Investor
A property investor is someone who actively or passively invests in property.

Property Portfolio
A property portfolio is a collection of investment properties owned by an individual, group or company.

Rental Agreement
A rental agreement is a contract, usually written, between the owner of a property and someone who desires to have temporary possession of the property.

Rental Income
Rental income is income derived from rented property.

SDLT (Stamp Duty Land Tax)
SDLT stands for Stamp Duty Land Tax and is payable when purchasing property or land.

Tenant
Tenant is someone who pays rent for the right to occupy a property owned by another.

Tenancy
Tenancy is the temporary possession of a property owned by another person or party.

TDS (Tenancy Deposit Protection Scheme)
Tenancy Deposit Protection Scheme was introduced through the Housing Act 2004, to ensure that tenants receive their deposits back, when entitled to them.

Trial Balance
Trial Balance proves the accuracy of your records. (Debits = Credits)