Property Management Dictionary & Rental Terms Glossary
A
Appraised Value
The value that is given to a property, determined by a qualified appraiser or institution.
B
Brownstone
A material similar to soft sandstone that can be cut in any direction.
C
Cap Rate
The cap rate is a useful metric used to determine the return on investment for certain investment properties.
Capital Improvement
A capital improvement is any permanent improvements or alterations that are made to a property with the intent to raise its value.
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
An area that is not owned by a specific resident, but shared by more than one.
Condo vs. Apartment
Discover how the two compare and which one is ideal for you.
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.
Common Area
An area that is not owned by a specific resident, but shared by more than one.
D
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.
E
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.
F
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.
G
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.
L
Landlord
A landlord is a property owner who leases their property to tenants who pay rent.
Lease Agreement
A lease agreement is a formal, written contract between a landlord and tenant that outlines a variety of different things.
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.
M
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.
N
Net Operating Income
An estimate used to quickly estimate an investment's profitability.
O
Occupancy
The legal possession by some individual of some kind of property.
P
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.
R
Rent Control
A program that is intended to help reach rental housing that is more affordable.
Rent Roll
A document outlining the income from various real estate assets.
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.
S
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.
Sublease
A lease created by the tenant for another tenant on the same property.
T
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.
Townhouse
A home with multiple stories that is attached to other homes next to it.
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.
W
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