A

Amenity: A feature or facility offered at a property to enhance comfort or convenience, such as gyms, pools, or concierge services.

Assessed Value: The dollar value placed on a property by a public tax assessor for property taxation purposes.

Appraisal: A licensed expert's formal estimate of a property's market value, typically for loans, sales, or taxes.

Asset Management: Oversight of real estate investments to optimize financial performance and long-term value.

ACH or Bank Transfer: A digital payment method that moves funds directly between bank accounts through the Automated Clearing House (ACH) network, often used for rent payments or deposits.

Apartment: A self-contained housing unit within a larger residential building, typically rented and sharing common areas with other units.

Americans With Disabilities Act (ADA): A federal law that prohibits discrimination based on disability and requires public and certain residential properties to provide accessible features and accommodations.

B

Broker: A licensed professional who facilitates real estate transactions and may supervise agents.

Build-to-Rent: Properties constructed specifically to be rented out, not sold.

Building Code: Building codes are sets of laws put in place by the State, County, and City Governments to regulate the design and construction standards for building homes.

Brownstone: A type of townhouse or row house made of reddish-brown sandstone, especially common in historic city neighborhoods.

C

Cap Rate: A metric used to estimate the return on investment of a property, calculated as net operating income divided by current market value.

Cash Flow: The net income from a rental property after expenses like mortgage, taxes, and repairs are paid.

Certificate of Occupancy: A legal document issued by a local government that certifies a building is compliant with applicable codes and safe for occupancy.

Condo (Condominium): An individually owned unit within a building of other units, often sharing amenities like pools or gyms.

Co-signer: A person who signs a lease or loan with the primary tenant, agreeing to be legally responsible for payment if the tenant defaults.

D

Default: Failure to meet legal obligations of a contract, such as not paying rent or mortgage on time.

Depreciation: A reduction in the value of a property over time due to wear and tear, which can be used as a tax deduction.

Due Diligence: The process of thoroughly investigating a property before purchase, including inspections, title checks, and financials.

E

Equity: The value of an owner’s interest in a property, calculated as market value minus any outstanding mortgage balance.

Escrow: A neutral third party that holds funds or documents during a transaction until certain conditions are met.

Eviction: The legal process of removing a tenant from a rental property for violating the lease agreement.

F

Fair Housing Act: A federal law that prohibits discrimination in housing based on race, color, religion, sex, national origin, disability, or family status.

Fixed-Term Lease: A rental agreement that lasts for a specific period, such as 12 months.

Foreclosure: A legal process where a lender repossesses a property after the borrower fails to make mortgage payments.

G

Gross Rent: The total rental income collected from a property before any expenses are deducted.

Guarantor: A third party who agrees to pay rent if the tenant fails to do so, often used when a tenant has no income history.

H

HOA (Homeowners Association): An organization that manages common areas and enforces rules in a condo or housing community.

Habitable: A legal standard requiring a rental property to be safe, sanitary, and fit for occupancy.

I

Inspection: A formal review of a property’s condition, often required before leasing, selling, or financing.

Interest Rate: The percentage charged by a lender on the principal amount of a loan, such as a mortgage.

J

Joint Tenancy: A type of property ownership where two or more people own equal shares with rights of survivorship.

Judgment: A court decision that may require a tenant or landlord to pay damages or take action.

K

Key Deposit: A refundable deposit collected for the keys to a rental unit, to be returned upon move-out.

L

Lease: A legal agreement between landlord and tenant outlining the terms of rental.

Late Fee: A penalty charged when rent is paid after the due date specified in the lease.

Landlord: The owner of a rental property who leases it to tenants.

M

Maintenance: The work done to keep a property in good condition and livable.

Market Rent: The going rate for rental properties in a given area, based on current market conditions.

Month-to-Month Lease: A rental agreement that continues on a monthly basis until terminated by either party with proper notice.

N

Net Operating Income (NOI): A property's income after operating expenses are deducted, excluding mortgage costs.

Notice to Vacate: A written notice from a landlord or tenant indicating their intention to end the lease.

O

Owner's Draw: Money taken out of rental income by the property owner for personal use.

Occupancy Rate: The percentage of available rental units that are currently occupied.

P

Property Manager: A person or company hired to oversee the day-to-day operations of a rental property.

Pre-Leasing: Renting a property before it becomes available for occupancy.

Prorated Rent: Partial rent calculated based on the number of days a tenant occupies the unit during the first or last month.

S

Security Deposit: A sum of money held by the landlord to cover potential damages or unpaid rent, refundable at move-out if conditions are met.

Sublease: An agreement where the original tenant rents out the property to another person while remaining liable under the lease.

Section 8: A federal housing assistance program that provides rental subsidies for low-income tenants.

T

Tenant: A person who rents or leases a property from a landlord.

Tenant Screening: The process of evaluating prospective tenants using background checks, credit reports, and references.

Turnover: The process of a tenant moving out and preparing the unit for a new tenant, including cleaning and repairs.

U

Utilities: Essential services such as water, electricity, gas, and trash removal, which may be paid by the tenant or landlord depending on the lease.

Unlawful Detainer: A legal action used by landlords to evict tenants who remain in the property without legal right.

V

Vacancy Rate: The percentage of all available rental units that are unoccupied at a given time.

Verification of Employment (VOE): A process used by landlords to confirm a tenant’s employment status and income.

W

Walkthrough: An inspection of a rental unit conducted with the tenant at move-in or move-out to document the unit’s condition.

Warranty of Habitability: A legal doctrine requiring landlords to keep rental properties livable and up to code.

X

Xeriscaping: A landscaping method designed for water conservation, sometimes used in rental property groundskeeping.

Y

Yield: The income return on an investment, typically calculated as annual rent divided by the property’s value.

Z

Zoning: Local government regulations that determine how land and buildings can be used (e.g., residential, commercial).