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Property Management Definitions
Upgrade your investor lexicon with our real estate dictionary, specifically built for property owners and landlords.
Regardless of how long you’ve been a property manager, some key terms might still escape you. Like any good niche, real estate has given birth to hundreds of specialized terms that may confound the average joe.
Below is a list of essential terms and definitions for independent landlords, investors, and real estate professionals.
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Accessory Dwelling Unit (ADU):
An accessory dwelling unit (ADU) is a self-contained living space that is an extension of an existing property. Also known as mother-in-law suites or casitas,
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An accessory dwelling unit (ADU) is a self-contained living space that is an extension of an existing property. Also known as mother-in-law suites or casitas,
Affordable Housing:
According to the U.S. Department of Housing and Urban Development (HUD), affordable housing is “housing on which the occupant is paying no more than
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According to the U.S. Department of Housing and Urban Development (HUD), affordable housing is “housing on which the occupant is paying no more than
Amenities:
Amenities are desirable or useful features that add to the appeal of a home in the eyes of its tenants or buyers. The root of
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Amenities are desirable or useful features that add to the appeal of a home in the eyes of its tenants or buyers. The root of
Amortization:
Amortization Meaning
Amortization is the systematic repayment of a debt or other financial obligation, often paid in installments. In real estate, you may hear the
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Amortization Meaning
Amortization is the systematic repayment of a debt or other financial obligation, often paid in installments. In real estate, you may hear the
Apartment:
An apartment is a type of multifamily property that typically has three or more units, shared common areas, and community amenities. According to Bankrate,
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An apartment is a type of multifamily property that typically has three or more units, shared common areas, and community amenities. According to Bankrate,
Appraisal:
A real estate appraisal is a professional opinion on the monetary value of real estate, normally conducted by a licensed appraiser independent of both the
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A real estate appraisal is a professional opinion on the monetary value of real estate, normally conducted by a licensed appraiser independent of both the
Appraised Value:
The appraised value is the amount a real estate appraiser estimates your home is worth when it comes time to sell it. It doesn’t just
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The appraised value is the amount a real estate appraiser estimates your home is worth when it comes time to sell it. It doesn’t just
Asset Management:
Asset Management Definition: Asset management is the process of identifying, acquiring, and maintaining assets to maximize their value to an organization.
Asset management aims
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Asset Management Definition: Asset management is the process of identifying, acquiring, and maintaining assets to maximize their value to an organization.
Asset management aims
B
Background Check:
A background check is a method to confirm an individual’s identity using financial, criminal, and commercial data.
The Purpose
The primary goal of a tenant
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A background check is a method to confirm an individual’s identity using financial, criminal, and commercial data.
The Purpose
The primary goal of a tenant
Balloon Mortgage:
Balloon Payment Definition: A balloon mortgage is a financing strategy in which a homebuyer makes low payments throughout the loan period but pays a
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Balloon Payment Definition: A balloon mortgage is a financing strategy in which a homebuyer makes low payments throughout the loan period but pays a
Brownstone:
Brownstone Definition: A brownstone is a brick townhouse or row house with a brownstone facade, and it’s particularly popular on the East Coast. Often
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Brownstone Definition: A brownstone is a brick townhouse or row house with a brownstone facade, and it’s particularly popular on the East Coast. Often
BRRRR Method:
BRRRR Meaning: The BRRRR method is a real estate investment strategy hinged on using cash or short-term financing to buy a distressed property or
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BRRRR Meaning: The BRRRR method is a real estate investment strategy hinged on using cash or short-term financing to buy a distressed property or
C
C Corporation (C Corp):
C Corporation Definition: A C corporation (or C corp) is a legal structure for a business in which the owners, or shareholders, are taxed
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C Corporation Definition: A C corporation (or C corp) is a legal structure for a business in which the owners, or shareholders, are taxed
Cash-on-Cash Return:
Cash-on-cash (COC) return measures the investment performance of an equity or real estate investment. It is also known as the cash-flow return on investment (ROI).
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Cash-on-cash (COC) return measures the investment performance of an equity or real estate investment. It is also known as the cash-flow return on investment (ROI).
Co-Signer:
A co-signer is someone who takes full responsibility for the payment of a lease or loan along with the primary signer. Co-signers can sign on
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A co-signer is someone who takes full responsibility for the payment of a lease or loan along with the primary signer. Co-signers can sign on
Commercial Property Management:
Commercial property management is the business of finding tenants, arranging maintenance, and facilitating leases for non-residential buildings, such as malls and offices. Commercial and residential
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Commercial property management is the business of finding tenants, arranging maintenance, and facilitating leases for non-residential buildings, such as malls and offices. Commercial and residential
Companion Animal:
According to the ASPCA, a companion animal “should be domesticated or domestic-bred animals whose physical, emotional, behavioral and social needs can be readily met
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According to the ASPCA, a companion animal “should be domesticated or domestic-bred animals whose physical, emotional, behavioral and social needs can be readily met
Covenant of Quiet Enjoyment:
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Credit Check:
A credit check is a summary of a consumer’s existing and past credit, payment habits, and types of loans taken out, and it’s used
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A credit check is a summary of a consumer’s existing and past credit, payment habits, and types of loans taken out, and it’s used
Credit Score:
A credit score is a three-digit number between 300 and 850 that communicates a consumer’s creditworthiness based on their credit history. Lenders use credit scores
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A credit score is a three-digit number between 300 and 850 that communicates a consumer’s creditworthiness based on their credit history. Lenders use credit scores
D
Duplex:
A duplex house is a residential property consisting of two separate units in a single building. Duplexes can vary in structure, but the most common
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A duplex house is a residential property consisting of two separate units in a single building. Duplexes can vary in structure, but the most common
E
Emotional Support Animal:
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Eviction:
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Eviction Moratorium:
On March 25, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which included a moratorium on the eviction of tenants that
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On March 25, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which included a moratorium on the eviction of tenants that
F
Fair Housing:
According to the Fair Housing Center of West Michigan, “fair housing is the right to choose housing free from unlawful discrimination.” Americans
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According to the Fair Housing Center of West Michigan, “fair housing is the right to choose housing free from unlawful discrimination.” Americans
FICO Score:
According to NerdWallet, a FICO score is “three-digit number, typically on a 300-850 range, that tells lenders how likely a consumer is to
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According to NerdWallet, a FICO score is “three-digit number, typically on a 300-850 range, that tells lenders how likely a consumer is to
Furnished Rental:
A furnished rental is a rental unit that comes pre-supplied with the furniture and appliances that its tenants will require. With a fully-furnished rental unit,
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A furnished rental is a rental unit that comes pre-supplied with the furniture and appliances that its tenants will require. With a fully-furnished rental unit,
G
Gross Lease:
A gross lease, most common in commercial leases, is one in which the tenant pays a flat fee for rent, and the landlord is responsible
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A gross lease, most common in commercial leases, is one in which the tenant pays a flat fee for rent, and the landlord is responsible
Guarantor:
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H
Habitability Standards:
Habitability standards represent the minimum requirements a dwelling must meet to be considered fit for human habitation. Local, state, or federal laws typically set these
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Habitability standards represent the minimum requirements a dwelling must meet to be considered fit for human habitation. Local, state, or federal laws typically set these
Holdover Tenant:
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Home Equity Line of Credit (HELOC):
A home equity line of credit, or HELOC, is a form of revolving funds that allows you to borrow money against your home’s value over
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A home equity line of credit, or HELOC, is a form of revolving funds that allows you to borrow money against your home’s value over
Homeowner Insurance:
Homeowner insurance is an insurance policy designed to protect the borrower’s primary residence. Standard homeowner insurance policies cover the building, personal property damage, and liability.
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Homeowner insurance is an insurance policy designed to protect the borrower’s primary residence. Standard homeowner insurance policies cover the building, personal property damage, and liability.
Homeowners Association:
Understanding HOAs
A homeowners association, or HOA, is a business entity created by a real estate developer for the purpose of marketing, managing, and
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Understanding HOAs
A homeowners association, or HOA, is a business entity created by a real estate developer for the purpose of marketing, managing, and
House Hacking:
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I
Investment Property:
According to Rocket Mortgage, “an investment property is real estate purchased to generate income (i.e., earn a return on the investment) through rental income
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According to Rocket Mortgage, “an investment property is real estate purchased to generate income (i.e., earn a return on the investment) through rental income
L
Landlord:
A landlord is the owner of a house, apartment, condominium, or other real estate which is rented or leased to a tenant. That tenant could
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A landlord is the owner of a house, apartment, condominium, or other real estate which is rented or leased to a tenant. That tenant could
Landlord Insurance:
Landlord insurance is a type of insurance policy that protects property owners who rent out their property. It’s also referred to as rental property insurance.
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Landlord insurance is a type of insurance policy that protects property owners who rent out their property. It’s also referred to as rental property insurance.
Lease Agreement:
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Lease Option:
Lease options are like standard lease agreements, except they allow tenants the option to buy a rented property after a specified period, typically at the
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Lease options are like standard lease agreements, except they allow tenants the option to buy a rented property after a specified period, typically at the
Leasehold Estate:
Leasehold Estate Meaning
A Leasehold Estate is a property interest that a tenant (lessee) holds thanks to a lease agreement with a property owner (lessor).
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Leasehold Estate Meaning
A Leasehold Estate is a property interest that a tenant (lessee) holds thanks to a lease agreement with a property owner (lessor).
M
Modified Gross Lease:
A Modified Gross Lease, the tenant pays a base rent and then takes on a proportional share of other costs associated with the property.
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A Modified Gross Lease, the tenant pays a base rent and then takes on a proportional share of other costs associated with the property.
Mortgage:
According to Investopedia, a “mortgage is a type of loan used to purchase or maintain a home, land, or other types of real
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According to Investopedia, a “mortgage is a type of loan used to purchase or maintain a home, land, or other types of real
N
Net Operating Income (NOI):
For investors, the net operating income (NOI) is a key metric in determining the profitability of a property – usually a multifamily, duplex,
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For investors, the net operating income (NOI) is a key metric in determining the profitability of a property – usually a multifamily, duplex,
Noise Complaint:
A noise complaint is a written or verbal complaint made against a person or group that’s causing excessive noise. Noise complaints are typically made to
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A noise complaint is a written or verbal complaint made against a person or group that’s causing excessive noise. Noise complaints are typically made to
O
Occupancy:
Occupancy is a legal term that refers to how a person can use land or a building. When you hear the word occupancy, you might
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Occupancy is a legal term that refers to how a person can use land or a building. When you hear the word occupancy, you might
P
Personal Property:
Personal property is any movable property that is not permanently attached to real estate. This includes furniture, appliances, and vehicles. For landlords, it’s essential to
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Personal property is any movable property that is not permanently attached to real estate. This includes furniture, appliances, and vehicles. For landlords, it’s essential to
Pet Deposit:
A pet deposit is a one-time fee landlords can ask tenants to pay to mitigate the cost of property damage and losses caused by their
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A pet deposit is a one-time fee landlords can ask tenants to pay to mitigate the cost of property damage and losses caused by their
Pet Rent:
Pet rent is a monthly charge a tenant pays to keep their animal in the rental. Service animals and emotional support animals (ESAs) cannot be
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Pet rent is a monthly charge a tenant pays to keep their animal in the rental. Service animals and emotional support animals (ESAs) cannot be
Prorated Rent:
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R
Real Estate Agent:
A real estate agent is a licensed professional that specializes in the selling of properties. These properties can either be residential (single-family homes) or commercial
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A real estate agent is a licensed professional that specializes in the selling of properties. These properties can either be residential (single-family homes) or commercial
Real Estate Broker:
A real estate broker is someone who is at the top licensing level of the real estate profession. It is possible for a broker to
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A real estate broker is someone who is at the top licensing level of the real estate profession. It is possible for a broker to
Real Estate Investment:
If you are considering becoming a real estate investor, you’re likely aware of how lucrative it can be. With the right investments, you can make
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If you are considering becoming a real estate investor, you’re likely aware of how lucrative it can be. With the right investments, you can make
Reasonable Accommodations:
Reasonable accommodations are “a change, exception, or adjustment to a rule, policy, practice, or service,” according to the U.S. Department of Housing and Urban Development
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Reasonable accommodations are “a change, exception, or adjustment to a rule, policy, practice, or service,” according to the U.S. Department of Housing and Urban Development
Rent Collection:
What is Rent Collection?
An Essential Property Management Term
Rent collection is the act of a landlord or property manager gathering the monthly rent payment
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Rent collection is the act of a landlord or property manager gathering the monthly rent payment
Rent Control Law:
Rent control laws dictate the amount a landlord can charge for rent and lease renewals. Some of this legislation also regulates rental increases during and
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Rent control laws dictate the amount a landlord can charge for rent and lease renewals. Some of this legislation also regulates rental increases during and
Rent Ledger:
What is a ledger for rent?
A rent ledger is far more than just a financial register; it’s a crucial tool in property management that
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What is a ledger for rent?
A rent ledger is far more than just a financial register; it’s a crucial tool in property management that
Rent Payments:
What are Rent Payments?
An Essential Property Management Term
A rent payment is a monthly fee paid by the tenant to their landlord or property
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A rent payment is a monthly fee paid by the tenant to their landlord or property
Rent Roll:
A rent roll is a document that lists due rent and rents that have been collected on an investment property. According to the Balance,
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A rent roll is a document that lists due rent and rents that have been collected on an investment property. According to the Balance,
Rental Arbitrage:
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Renters Insurance:
Renters insurance is a type of insurance policy that protects the tenant’s personal belongings, lawsuits related to their tenancy (e.g., a tenant’s kid breaks a
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Renters insurance is a type of insurance policy that protects the tenant’s personal belongings, lawsuits related to their tenancy (e.g., a tenant’s kid breaks a
Residential Rental Property:
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Room Rental Agreement:
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S
Schedule E:
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Section 8 Housing:
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Security Deposit:
According to Investopedia, a security deposit “is money that is given to a landlord, lender, or seller of a home or apartment as proof
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According to Investopedia, a security deposit “is money that is given to a landlord, lender, or seller of a home or apartment as proof
Single-Family Home:
A single-family home is defined as a freestanding residence that shares no common walls with any other structure. The name comes from the fact that
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A single-family home is defined as a freestanding residence that shares no common walls with any other structure. The name comes from the fact that
Slumlord:
“Slumlord” is slang for an unscrupulous landlord who is more concerned about their profits than their tenants or neighborhood, which can manifest as absenteeism in
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“Slumlord” is slang for an unscrupulous landlord who is more concerned about their profits than their tenants or neighborhood, which can manifest as absenteeism in
Squatter:
A squatter is someone who starts living on a property they don’t own without permission. While they don’t have any legal claim to the property
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A squatter is someone who starts living on a property they don’t own without permission. While they don’t have any legal claim to the property
Sublease:
Subleasing is an option for handling the remainder of a lease that a current tenant is unable to complete. Here is an overview of what
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Subleasing is an option for handling the remainder of a lease that a current tenant is unable to complete. Here is an overview of what
Sublet:
A Sublet is one of the most common options for covering a portion of a lease if a current tenant needs to move out temporarily
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A Sublet is one of the most common options for covering a portion of a lease if a current tenant needs to move out temporarily
T
Tenant:
A tenant is a person who occupies rental property owned by a landlord. Whether the rental property in question is an apartment, townhouse, single-family home,
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A tenant is a person who occupies rental property owned by a landlord. Whether the rental property in question is an apartment, townhouse, single-family home,
Tenant Estoppel Certificate:
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Therapy Animal:
A therapy animal is a creature who, along with its owner, is registered by an animal-assisted intervention organization to visit hospitals, long-term care facilities, treatment
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A therapy animal is a creature who, along with its owner, is registered by an animal-assisted intervention organization to visit hospitals, long-term care facilities, treatment
Townhouse:
Also known as a townhome, a townhouse is a type of real estate that has multiple floors and shares at least two of its walls
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Also known as a townhome, a townhouse is a type of real estate that has multiple floors and shares at least two of its walls
Triple Net Lease (NNN):
Triple net leases, also known as NNN leases, represent a leasing arrangement where the tenant assumes the majority of the operating expenses of the property,
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Triple net leases, also known as NNN leases, represent a leasing arrangement where the tenant assumes the majority of the operating expenses of the property,
Triplex:
A triplex is a property comprising three individual units in one building, and each unit typically shares at least one common wall. A triplex can
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A triplex is a property comprising three individual units in one building, and each unit typically shares at least one common wall. A triplex can
Turnkey Property:
A Turnkey Property is a home (single-family residence, duplex, or apartment) that is ready for a tenant to move into from day one. Necessary renovations
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A Turnkey Property is a home (single-family residence, duplex, or apartment) that is ready for a tenant to move into from day one. Necessary renovations
U
Utilities:
Utilities are the essential daily services that a person needs in order to have a working, functional living space. Going beyond the other necessities for
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Utilities are the essential daily services that a person needs in order to have a working, functional living space. Going beyond the other necessities for
V
Vacancy Loss:
Vacancy loss refers to the financial impact experienced by landlords or property owners when rental units or properties remain unoccupied for a period of time.
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Vacancy loss refers to the financial impact experienced by landlords or property owners when rental units or properties remain unoccupied for a period of time.
Vacation Rental:
A vacation rental is an investment property rented out for short periods, typically less than one month. According to Statista, the expected rise to
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A vacation rental is an investment property rented out for short periods, typically less than one month. According to Statista, the expected rise to
Virtual Assistant:
A virtual assistant (VA) is an independent contractor who handles the administrative tasks for a client or business, usually from a remote location. While there
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A virtual assistant (VA) is an independent contractor who handles the administrative tasks for a client or business, usually from a remote location. While there
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Wear and Tear:
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Workforce Housing:
Workforce housing is affordable housing for households earning between 60-120% of their area median income (AMI), according to the Urban Land Institute (ULI). Workforce
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Workforce housing is affordable housing for households earning between 60-120% of their area median income (AMI), according to the Urban Land Institute (ULI). Workforce
Z
Zoning:
Zoning regulations govern land use, determining the types of buildings developers can construct, locations for these structures, and permissible activities. It’s crucial for anyone
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Zoning regulations govern land use, determining the types of buildings developers can construct, locations for these structures, and permissible activities. It’s crucial for anyone
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1031 Exchange:
Understanding the 1031 Exchange Process
A crucial concept in property management and investment strategies is the 1031 exchange, also known as a Tax Deferred Exchange.
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Understanding the 1031 Exchange Process
A crucial concept in property management and investment strategies is the 1031 exchange, also known as a Tax Deferred Exchange.
