Property Management Dictionary & Rental Terms Glossary

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Affordable housing

Find out whether or not investing in affordable housing is right for you in this complete guide on affordable housing.

Amenities

Features to make the living space more comfortable. They can be a swimming pool, gym, WiFi, valet, & more.

Apartment

A room or set of rooms that is fitted with essential utilities and for occupancy.

Appraised Value

The value that is given to a property, determined by a qualified appraiser or institution.

Brownstone

A material similar to soft sandstone that can be cut in any direction.

Capital Improvement

A capital improvement is any permanent improvements or alterations that are made to a property with the intent to raise its value.

Cap Rate

The cap rate is a useful metric used to determine the return on investment for certain investment properties.

Cash-on-Cash Return

A ratio that calculates how profitable a cash investment has been on a property.

Certificate Of Occupancy

The document issued by a local building or zoning department that states the property is ready for occupancy.

Certificate of Title

A legal document that confirms the legal owner of some kind of property.

Co-Applicant

The second person on an application like a mortgage or loan. They have to repay the loan with another person.

Common Area

An area that is not owned by a specific resident, but shared by more than one.

Common area maintenance

Find out why common area maintenance is important in this complete guide.

Condominium

A condominium (also known as a "condo") is a private residency you can rent out tenants which is usually found in a residential structure or community.

Condo vs. Apartment

Discover how the two compare and which one is ideal for you.

Condo vs. Townhouse

Discover the difference between owning a condo and owning a townhouse.

Curb Appeal

The curb appeal is the attractiveness of a property for sale when viewed from the street.

Duplex

Usually 2 units on 2 floors, or side by side. They typically share walls with one family occupying each unit with their own entrances.

Effective Rent

The actual rental rate achieved by the landlord after deducting other expenses.

Estoppel Certificate

An agreement used in real estate that states the current conditions of the lease, like the monthly rent.

Eviction

The legal process undergone by a landlord to remove a tenant from a rental property for a valid reason.

Fair Market Rent

The fair market rate or fair market value, also know as the open market valuation, is an educated opinion of what a property could sell for.

Floor Area Ratio (FAR)

A proportion within a building that is used by governments to set local zoning codes and regulations.

Gross Lease

A type of lease where all expenses, including utilities, are included under a single monthly payment.

Gross Rent

The full amount that is paid for a rental income before subtracting all other expenses.

Ground Lease

An agreement between a landowner and someone who wants to build property there.

Guarantor

A person who is liable for paying the rent on a property if the renter is unable to do so.

Landlord

A landlord is a property owner who leases their property to tenants who pay rent.

Landlord Insurance

Landlord insurance provides landlords with thousands of dollars in protection for themselves and their rental properties.

Lease Agreement

A lease agreement is a formal, written contract between a landlord and tenant that outlines a variety of different things.

Leasehold Estate

A legal document that grants the tenant the exclusive right to occupy a rental property for a period of time.

Lessee

A lessee is a person or entity that enters into a lease agreement with a lessor.

Lessor

An individual who is the owner of property and agrees to rent it out to a lessee, typically with some agreement.

Market Rent

The anticipated amount of rent that a property is expected to earn per month.

Master Association

A master association is a type of homeowners association (HOA) that is responsible for overseeing and managing a larger community or development.

Modified Gross Lease

A lease structure where the landlord and the tenant are both responsible for covering the expenses of the property.

Net Operating Income

An estimate used to quickly estimate an investment's profitability.

Occupancy

The legal possession by some individual of some kind of property.

Percentage Rent

The minimum amount of rent that is paid by the tenants to the owner.

Pet Deposit

A deposit that is charged to cover damages caused by any pets on the property.

Property Maintenance

Property maintenance is the practice of maintaining various aspects of a rental property to maintain its warranty of implied habitability.

Property Management

Property management is the overseeing of the the daily operations of rental properties that are typically owned by a third-party.

Rent Control

A program that is intended to help reach rental housing that is more affordable.

Renters Insurance

Renters insurance is a type of insurance that covers a wide variety of unexpected events, ranging from personal property coverage to liability coverage.

Rent Roll

Rent roll is a document that outlines the rental income from a real estate property. It can be constructed for a variety of properties and assets.

Security Deposit

A deposit paid by the tenant to cover certain situations within the property.

Single Family Home

A single family home can have a few specific definitions, but they all consist of a home that is meant for one family to live at a time.

Squatter

A person living on a property that they do not legally own.

Student Housing

Student housing is a form of accommodation that university or college students can choose as an alternative to on-campus housing.

Sublease

A lease created by the tenant for another tenant on the same property.

Subletting

The action of renting out the property you are renting to someone else.

Tenancy

The temporary possession of some property by a tenant.

Tenant Improvement

In real estate, tenant improvements, or leasehold improvements, are any changes or repairs that a landlord makes to the property as a part of the lease agreement.

Tenant Screening

Tenant screening services give landlords and property managers a way of learning about applicants to gain a variety of important information.

Title Company

A company that ensures that the title for the property is being given to the buyer legitimately.

Townhouse

A home with multiple stories that is attached to other homes next to it.

Townhouse vs. Apartment

Discover the similarities and differences between townhouses and apartments.

Townhouse vs. House

Find out how a townhouse and a house compare to each other.

Triple Net Lease

A lease agreement where the tenant pays for all operating expenses of the property.

Triplex

A building that combines three separate units into one structure.

Turnkey Property

A property that is purchased with the help of a property management company.

Warranty Deed

A deed where the grantor guarantees that they possess a clear title for a property.

Workforce Housing

Housing built to serve families with middle-class incomes.