If you’re considering managing your own property investment or simply leasing a new home, it is extremely helpful to understand the jargon that gets thrown around in rental situations. That’s why we’ve compiled this comprehensive guide to essential property management and rental terminology. So, when you’re ready to dive into the world of leasing terms, rentals, and tenant screenings, you’ll be set with all the necessary knowledge.
Essential Rental Terminology
Abandonment
The surrender or relinquishment of a real estate property, including a piece of land or a housing unit.
Broker
A real estate professional who purchases and sells property for others in order to receive a commission. This professional must be licensed and eligible to practice in the state he resides in.
Co-Signer
An additional signer on a lease or mortgage that is used in order to verify the identity of the principle owner or to provide a certain level of surety to the lender or landlord.
Equal Housing Opportunity
This refers to how all-American citizens can have the opportunity to live in different housing communities regardless of their age, disability, gender, familial status, nationality, race, or sexual orientation.
Fair Housing Act
This law is of a federal status and was put in effect to stop the discrimination that occurs in housing because of race, age, color, handicap, sex, religion, national origin and familial status.
Investment Property
A property that is purchased by the owner to generate profit through renting the property out to tenants.
Landlord-Tenant Law
A part of the Common Law that outlines the rights and duties of both landlords and tenants, including the duty to preserve the premises on the tenant’s part and duty do deliver possession on the landlord’s side.
Lease
A contract outlining the terms and conditions between a landlord and tenant under which the tenant gets an exclusive right to use the home for a fixed term. In turn, the landlord receives payments for the duration of the contract.
Long-Term Rental
A long-term lease is often defined as anything that is agreed-upon for more than one year.
Percentage Fee
An agreed-upon percentage from the property’s gross collectible income for a property management fee.
Pet Screening
A process of collecting information and validating Assistance Animal requests by the landlord or a specialized company in order to discover fraud and assess potential risks attached to each particular pet.
Property Management Agreement
An agreement clarifying the service, responsibilities, and payments that will be signed by the landlord and a property management company.
Property Manager
A person managing a real estate property that belongs to someone else. Property managers get compensated for dealing with accounting, maintenance, and rent collection among other duties.
Return on Investment (ROI)
A metric that shows how much profit an investor makes on the investment property as a percentage of the investment cost.
Tenant Screening
A process carried out by the landlord or a property management company to verify the background of a potential tenant. The process may include a credit check, interviews, and background check.
Three-Day Notice
A type of eviction notice used in some states that demands the payment of delinquent rent within a three-day period or vacating the property as the only alternative.
Ready to take the next step?
If you’re looking to lease a property or ready to start working alongside property management professionals, know that our team at MGR is always ready to help. Our property managers use three decades of experience to help you achieve your property goals, give us a call today.