Rental and Property Management Glossary
45 real estate and rental terms, each explained in a few plain sentences.
Showing 45 of 45 terms
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A
- Affordable HousingHousing a household can afford while spending no more than about 30% of its income on rent or housing costs.
- AmenitiesFeatures, services or shared spaces that make a rental more comfortable or convenient, beyond the basic living space.
- Appraised ValueA licensed appraiser's professional opinion of what a property is worth on a specific date.
C
- Cap RateA property's net operating income divided by its value or price, used to compare the earning power of income properties.
- Capital ImprovementA lasting upgrade that adds value to a property, extends its life or adapts it to a new use, rather than a routine repair.
- Cash-on-Cash ReturnAnnual pre-tax cash flow from a property divided by the total cash you invested, shown as a percentage.
- Certificate of OccupancyA document from a local building department confirming a building meets code and may legally be occupied for its intended use.
- Co-ApplicantA second person who applies for a rental alongside the main applicant, plans to live in the unit and shares responsibility for the lease.
- Common Area Maintenance (CAM)Fees commercial tenants pay for their share of the costs to operate and maintain a property's shared areas.
- CondominiumA form of ownership where you own an individual unit outright and share ownership of common areas with other owners.
D
E
- Effective RentThe average rent a tenant actually pays over the lease term after concessions like free months or move-in discounts.
- EscrowAn arrangement where a neutral third party holds money or documents until the conditions of an agreement are met.
- Estoppel CertificateA signed statement from a tenant confirming the key facts of their lease, often required when a property is sold or refinanced.
- EvictionThe legal process a landlord uses to remove a tenant from a rental property through the courts.
F
G
- Gross LeaseA lease where the tenant pays one flat rent and the landlord covers property taxes, insurance and maintenance.
- Gross Rent MultiplierA property's price divided by its gross annual rent, used as a quick screen to compare rental deals.
- Ground LeaseA long-term lease of land only, where the tenant builds on and uses the land while the landowner keeps ownership of it.
- GuarantorA person who agrees to pay rent and other lease obligations if the tenant does not, without living in the unit.
L
- Landlord InsuranceInsurance for rental property owners that typically covers the building, liability claims and lost rental income.
- Lease AgreementA legally binding contract that sets the terms under which a tenant rents property from a landlord.
- LesseeThe person or business that rents property under a lease and pays rent to the owner, also known as the tenant.
- LessorThe owner who grants another party the right to use property under a lease in exchange for rent, also known as the landlord.
M
N
O
P
- Percentage RentRent in a commercial lease that includes a share of the tenant's gross sales, usually above a set threshold.
- Pet DepositA refundable amount a tenant pays to cover possible pet damage, held separately from or in addition to the security deposit.
- Prorated RentA partial rent charge for only the days a tenant occupies a unit when they move in or out mid-month.
R
- Rent ControlLaws that limit how much and how often landlords can raise rent, often paired with limits on evictions.
- Rent RollA report listing every unit in a property with its tenant, lease dates, rent, deposit and balance.
- Renters InsuranceAn insurance policy for tenants that covers their belongings, personal liability and extra living costs after a covered loss.
S
T
- Tenant ImprovementCustom changes made to a commercial space to fit a specific tenant's needs, often funded partly by the landlord.
- Tenant ScreeningThe process of evaluating rental applicants through credit, income, rental history and background checks before approving a lease.
- Triple Net LeaseA commercial lease where the tenant pays base rent plus its share of property taxes, insurance and maintenance.
- Trust AccountA separate bank account where a property manager holds money that belongs to owners or tenants, such as rent and deposits.
- Turnkey PropertyA rental property that is renovated and ready to rent, or already rented, when you buy it, often with management in place.
V
W
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