Glossary

163 terms, defined the way you would explain them to a new hire.

A B C D E F H I J K L M N O P Q R S T U V W Z

Abandonment: When a tenant leaves the unit before the lease ends without notice and stops paying. State law can set a process and a waiting period before you can treat the unit and any belongings as abandoned. Check abandoned property laws by state.
Absorption rate: How fast available units in a market get leased over a set period. A low rate means longer vacancies and more pressure on price.
Accidental landlord: An owner who rents out a home they could not sell or chose to keep after a move. Explain the landlord role step by step, since they may never have rented out a home before.
Accounts payable (AP): Money the management company owes on behalf of owners or itself, such as vendor invoices, utilities and HOA dues.
Accounts receivable (AR): Money owed to the owner or company, mostly rent and fees not yet collected.
Accrual accounting: Recording income and expenses when they are earned or incurred, not when cash moves. Ask your accountant and your state regulator which basis your trust records must use.
Adverse action notice: The written notice required by the Fair Credit Reporting Act when you deny, condition or charge more to an applicant because of a screening report. It must name the screening company and the applicant's rights.
Amenity fee: A recurring or one-time charge for shared features like a gym or pool. Some states and cities regulate how these fees are disclosed and when they can be charged, so check state and local rules before adding one.
Annual inspection: A scheduled walk-through of an occupied unit, usually once a year, to catch deferred maintenance, lease violations and safety problems early.
Application fee: A charge to cover the cost of processing a rental application and screening. Some states cap it, limit it to actual cost or require a refund if no screening was run. See application fee limits by state.
Asset management: Managing a property as an investment: financing, capital plans, hold or sell decisions. Property management is the day-to-day operation underneath it.
Assignment: When a tenant transfers the whole remaining lease to someone else. Compare with sublease, where the original tenant stays responsible.
Assistance animal: A service animal or emotional support animal a person with a disability needs. Under the Fair Housing Act it is not a pet, so pet rent, pet deposits and breed limits generally cannot apply.
Association management: Managing a homeowners or condo association for its board: dues, vendors, meetings, rule enforcement. A separate line of business from rental management. Some states license it separately, so check before taking on an association.
At-will tenancy: A tenancy with no fixed end date that either side can end with proper notice. State law decides whether it is treated like a month-to-month tenancy and what notice applies.
Bad debt: Rent and charges you have given up trying to collect, usually after move-out. Tracked separately from delinquency still being worked.
Bank reconciliation: Matching the trust account bank statement to the ledger every month. A three-way reconciliation also matches it to the sum of owner and tenant ledgers.
Breach of lease: Any violation of lease terms, such as unpaid rent, unauthorized occupants, pets or property damage. The cure-or-quit notice period depends on the state and the type of breach.
Broker of record: The licensed broker legally responsible for a brokerage, including its property management activity and trust accounts.
Budget variance: The gap between budgeted and actual income or expense. Add short variance notes to monthly reports, especially for owners of larger portfolios.
Building code: Local construction and safety standards a rental must meet. Your state's habitability law may point back to these codes.
Business development: The work of winning new management agreements: owner leads, referrals, investor relationships and partnerships. Give it an owner, a pipeline and a weekly review like any other core process.
CAM (common area maintenance): Shared costs for common areas, passed to tenants in commercial leases and some residential communities.
Cap rate: Net operating income divided by property value. A quick way owners compare investment returns.
Capital expenditure (CapEx): Spending that replaces or improves a major component, such as a roof, HVAC system or water heater. Distinct from routine repairs.
Carbon monoxide detector: A safety device that state or local law may require in rentals with fuel-burning appliances or attached garages. Check your state and local code for who must install and test them.
Cash flow: What is left for the owner after rent collected minus operating costs, management fees and debt service.
Certificate of occupancy: A local government document confirming a building is fit to occupy. Your city may require a new one, or a rental inspection, before each new tenant.
Chargeback: An expense the management company bills back to a tenant, such as damage repair or a missed-appointment fee.
Churn (owner): Owners who end their management agreement in a period, usually measured as doors lost divided by doors at the start. Track it every month, with the reason for each loss.
Class A / B / C: Shorthand for property quality and age. A is newest with top rents, C is older with more maintenance and turnover.
Co-signer: A person who signs the lease and agrees to pay if the tenant does not. Sometimes called a guarantor, though a guarantor may not live in or sign the lease the same way.
Commingling: Mixing client trust money with the company's own operating money. Treat it as off limits, and check the trust account rules for your state on the licensing page.
Comparative market analysis (CMA): A rent or price estimate based on similar nearby properties. Used to set asking rent and to pitch owners.
Concession: A discount used to win a lease, such as a free month or reduced deposit. Spread it over the lease when calculating effective rent.
Conditional logic: In workflow software, steps that only appear when a condition is true, such as "if the property has an HOA, send the HOA packet."
Constructive eviction: When conditions get so bad (no heat, no water, serious hazards) that a tenant can treat the lease as broken and move out without owing rent.
Cost to serve: What it costs your company, in staff time and tools, to manage one door for a year. Compare it with revenue per door to find unprofitable accounts.
Cure or quit notice: A notice telling the tenant to fix a lease violation within a set time or leave. The period varies by state.
Days on market (DOM): How long a unit is listed before a lease is signed. Report it to the owner for every vacancy.
Deferred maintenance: Repairs that were put off. Left alone, it can grow into bigger repair bills. Document it at onboarding so the owner knows what was there before you took over.
Delinquency rate: Rent past due divided by rent charged for the period. Track it in dollars and in number of tenants.
Disparate impact: A fair housing theory where a neutral-looking policy, such as a blanket criminal history ban, falls harder on a protected class without a solid business reason.
Door: One rentable unit under management. PM companies measure size, revenue and staffing in doors.
Doors per employee: Total doors divided by total staff. A rough efficiency measure. Track it over time against your own history.
Due diligence: The review before taking on a property or portfolio: lease files, deposits held, open work orders, code violations, owner expectations.
Early termination fee: A pre-agreed charge to let a tenant end the lease early. State or federal law may limit it for certain tenants, so check before you charge it.
Effective rent: Rent after concessions are spread across the lease term.
Emergency maintenance: Repairs that threaten health, safety or serious property damage, such as no heat in winter, active leaks, gas smells or sewage backups. Have a 24/7 path for these.
Escrow: Money held by a neutral party or in a regulated account until conditions are met. Some states require security deposits to be held in a separate or trust account. See deposit interest and holding rules by state.
Estoppel certificate: A tenant-signed statement confirming lease terms, rent and deposit, typically used when a property is sold or refinanced.
Eviction: The court process to remove a tenant. It starts with a proper notice and ends with a judgment and a writ carried out by an officer such as a sheriff or marshal, not by the landlord personally.
Eviction moratorium: A temporary ban on some or all evictions. Federal ones have ended, but local rules can still apply in emergencies.
Fair housing: Federal, state and local laws that ban housing discrimination based on protected classes. Applies to advertising, screening, leasing and day-to-day management.
Familial status: A federally protected class covering households with children under 18 and pregnant people. Limits on occupancy must be reasonable, not designed to keep out families.
Fixed-term lease: A lease with a set start and end date, for example 12 months.
Flat fee management: Charging owners a set dollar amount per month instead of a percentage of rent.
Habitability: The legal standard that a rental must be safe and livable, with working plumbing, heat, electricity and weatherproofing. Most states treat it as part of every residential lease. See repair and habitability laws by state.
HAP contract: Housing Assistance Payments contract between a landlord and a public housing agency for a Housing Choice Voucher tenant.
HOA: Homeowners association. Its rules and fees can apply to rentals in the community and can restrict leasing.
Hold harmless clause: A contract clause where one side agrees not to hold the other liable for certain losses. Read it closely in any management agreement.
Holdover tenant: A tenant who stays after the lease ends without signing a renewal. State law decides whether this creates a month-to-month tenancy.
Housing Choice Voucher (Section 8): The federal rental assistance program run by local housing agencies. Some states and cities ban refusing voucher holders. See state fair housing protections.
Implied warranty of habitability: The rule, recognized in most states, that every residential lease includes a promise the unit is livable, even if the lease says nothing about it. See repair and habitability laws by state.
Inspection report: A dated, photo-backed record of a unit's condition. Keep move-in and move-out reports as your evidence in deposit disputes.
Joint and several liability: Each tenant on the lease is responsible for the full rent, not just their share.
Just cause eviction: Rules, in some states and cities, that only allow non-renewal or eviction for listed reasons. Some also require relocation payments for no-fault reasons.
Key control: The system for tracking who has which keys or access codes. Keep a written log even with smart locks and lockboxes.
Late fee: A charge for rent paid after the due date and any grace period. Some states cap the amount or set a grace period, and some require only that it be reasonable. See late fee laws by state.
Lead (owner): A property owner who might hire you to manage. One that signs can mean years of management fees. Use the lifetime value calculator to put a number on it.
Lead (tenant): A prospective renter asking about a listing. Set a response time standard and measure it.
Lead-based paint disclosure: The federal requirement to disclose known lead paint and give the EPA pamphlet before leasing housing built before 1978.
Lease: The contract that sets the terms of a tenancy: rent, term, rules, responsibilities.
Lease renewal: Extending a tenancy with a new term. Compare its cost with a turnover using the renewal vs turnover calculator, and run renewals on a dated timeline.
Lease-up: Filling a new or newly renovated property with tenants.
Leasing fee: A fee charged to the owner for placing a new tenant, such as a percentage of one month's rent or a flat amount.
Ledger: The running record of charges and payments for a tenant, owner or property.
Letter of intent: A short non-binding document outlining terms before a full contract. Used when buying a PM company or a large management assignment.
Lien: A legal claim on a property for an unpaid debt, such as a contractor's mechanic's lien.
Lifetime value (door): Total management revenue a door brings in over the time you keep it. Monthly revenue per door times the average months an owner stays.
Local ordinance: A city or county law. Rent control, rental registration and inspection programs can be set at the local level.
Lockout: Changing locks or removing doors to force a tenant out without a court order. Most states prohibit it as illegal self-help, and some add damages set by statute. Check the eviction rules on your state page.
Maintenance coordinator: The team member who triages requests, dispatches vendors and closes out work orders.
Maintenance markup: A percentage added to vendor invoices. Disclose it in writing in the management agreement and show it on owner statements.
Maintenance reserve: Cash kept in the owner's account to cover routine repairs without asking for approval each time.
Make-ready: The work to prepare a vacant unit for the next tenant: cleaning, paint, repairs, inspections.
Management agreement: The contract between owner and property manager. It sets fees, authority, spending limits, term and how either side can end it.
Management fee: The recurring fee for managing a property, either a percentage of collected rent or a flat monthly amount.
Market rent: What a unit would likely rent for today, based on comparables.
Mitigation of damages: The duty, where state law imposes it, for a landlord to make reasonable efforts to re-rent after a tenant breaks a lease, instead of charging rent for the full remaining term.
Month-to-month tenancy: A tenancy that renews every month until either side gives proper notice.
Move-in checklist: The ordered list of tasks from signed lease to keys in hand: funds collected, utilities transferred, inspection done, welcome sent.
Move-out disposition: The itemized statement of security deposit deductions sent after move-out, within the state deadline.
Multifamily: Buildings with more than one unit. Often split into small multifamily (2 to 4 units) and larger apartment communities.
NARPM: The National Association of Residential Property Managers, a trade group focused on single-family and small multifamily managers.
Net operating income (NOI): Income minus operating expenses, before debt payments and capital spending.
Notice to enter: Advance notice a landlord gives before entering an occupied unit. State law may set a minimum, such as 24 or 48 hours, and an exception for emergencies. See landlord entry notice by state.
Notice to vacate: A written notice that one side is ending the tenancy, with the move-out date.
Occupancy rate: Occupied units divided by total units. The inverse of vacancy rate.
Occupancy standard: A limit on how many people may live in a unit. HUD uses a general two-per-bedroom guideline, but local codes and unit specifics matter.
Onboarding (owner): Everything between a signed management agreement and a property running smoothly: documents, keys, bank info, tenant introduction, inspection.
Operating account: The company's own bank account, kept separate from trust accounts that hold client money.
Owner distribution: The monthly payment of net rent to the owner after fees and expenses.
Owner portal: A login where owners see statements, documents and work orders. Keep it current so owners can answer their own questions.
Owner statement: The monthly report of income, expenses, fees and distributions for an owner.
Pay or quit notice: A notice telling the tenant to pay overdue rent by a deadline or move out. Most states require one before filing for nonpayment. See pay or quit notice periods by state.
Pet deposit: A deposit to cover pet damage. Your state may count it toward the overall deposit cap.
Pet rent: A monthly charge for having a pet. Cannot be charged for assistance animals.
Pipeline (sales): The stages a lead moves through from first contact to signed agreement. Keep the stages visible so every lead has a next step and an owner.
PMS (property management software): The system of record for leases, ledgers, accounting and owner statements, such as AppFolio, Buildium, Rent Manager, Rentvine or Propertyware.
Portfolio: All properties managed for one owner, or all properties a company manages.
Preventive maintenance: Scheduled work to avoid failures: HVAC service, gutter cleaning, smoke detector checks, water heater flushes.
Prorated rent: Rent charged for part of a month, usually at move-in or move-out.
Protected class: A group protected from discrimination. Federal: race, color, religion, sex, national origin, familial status and disability. Many states and cities add more, such as sexual orientation, gender identity, source of income, age and military status. See state fair housing protections.
Quiet enjoyment: The tenant's right to use the home without unreasonable interference from the landlord.
RBP notice (risk-based pricing): A notice required when you approve an applicant on worse terms, such as a higher deposit, because of a credit report.
Reasonable accommodation: A change to a rule, policy or service so a person with a disability has equal use of housing, such as allowing an assistance animal or a reserved parking space.
Reasonable modification: A physical change to the unit for a person with a disability, such as grab bars or a ramp, paid for by the tenant in private housing under the Fair Housing Act. Federally assisted housing has different rules.
Relocation assistance: Money some jurisdictions require landlords to pay tenants displaced by no-fault evictions, major renovations or large rent increases.
Renewal rate: Leases renewed divided by leases that expired in a period.
Rent control: Limits on how much and how often rent can rise. Statewide caps exist in a few states, with stricter local versions in some cities. See rent control laws by state.
Rent roll: A list of every unit with tenant, rent, lease dates and balance. Have one ready for any sale, refinance or management takeover.
Rent stabilization: A form of rent regulation that allows set annual increases instead of freezing rent.
Rental registration: A local requirement to register rental properties, sometimes with fees and inspections.
Renter's insurance: Tenant-owned insurance for belongings and liability. A lease can require it.
Repair and deduct: A tenant remedy in some states: fix a serious problem the landlord ignored and subtract the cost from rent, within limits. See repair and habitability laws by state.
Retaliation: Punishing a tenant for complaining to authorities, requesting repairs or joining a tenant group, for example by raising rent or filing to evict. Most states prohibit it, and some presume retaliation when the landlord acts within a set period after a complaint. Check your state page.
Revenue per door: All company revenue from a door (management fee, leasing, renewal, maintenance markup and other fees) divided by doors.
Right of entry: The landlord's right to enter for repairs, inspections and showings, subject to notice rules.
Screening criteria: The written standards every applicant is measured against: income, credit, rental history, criminal history. Apply them the same way every time.
Section 8: Common name for the Housing Choice Voucher program.
Security deposit: Money held to cover unpaid rent and damage beyond normal wear and tear. State law can set caps, holding rules, return deadlines and penalties. See the deposit comparisons by state.
Self-help eviction: Removing a tenant without a court order, through lockouts, utility shutoffs or removing belongings. Most states prohibit it. Check the eviction rules on your state page.
Service level agreement (SLA): A promised response time, such as "emergency calls answered in 15 minutes" or "routine work orders scheduled in 3 business days."
Showing: A tour of a unit for a prospect, in person, self-guided or virtual.
Single-family rental (SFR): A detached home rented as one unit.
Smoke detector: A safety device that state and local codes regulate in rentals. Check your rules for where they must go and who tests them and replaces batteries.
Source of income protection: A state or local ban on refusing tenants because of lawful income sources such as vouchers, Social Security or child support.
Speed to lead: Time between a lead coming in and a real human response. Measure it separately for owner and tenant leads and set a standard for each.
Standard operating procedure (SOP): A written, repeatable way to do a task. The backbone of a firm that does not depend on one person's memory.
Sublease: When a tenant rents all or part of the unit to someone else while staying on the original lease.
Tenant improvement: Changes to a unit made for a specific tenant, more common in commercial leases.
Tenant ledger: The record of every charge and payment on a tenant's account.
Tenant portal: A login where tenants pay rent, submit maintenance requests and see documents.
Tenant screening report: A consumer report on an applicant, covered by the Fair Credit Reporting Act.
Three-way reconciliation: Matching the bank statement, the trust account book balance and the sum of all client ledgers. Some state regulators require it monthly. Check the trust account rules on the licensing page.
Trust account: A bank account that holds client money, such as rents and deposits, separate from company funds. Rules are set by the state real estate regulator.
Turnover: When one tenant leaves and another moves in. Each one costs lost rent plus make-ready and leasing work.
Turnover rate: Move-outs divided by occupied units in a period.
Unit turn: Same as make-ready: the cleaning and repairs between tenants.
Unlawful detainer: The name for an eviction lawsuit in several states, including California.
Utility billing (RUBS): Ratio utility billing system: splitting a master-metered utility bill among tenants by a formula. State or local law may regulate or ban it.
Vacancy cost: Daily rent lost while a unit sits empty, plus utilities, marketing and make-ready costs.
Vacancy rate: Vacant units divided by total units.
Vendor compliance: Keeping vendor insurance certificates, W-9s and licenses on file and current before dispatching work.
Vendor scorecard: A simple rating of vendors on response time, cost, quality and tenant feedback.
Walk-through: An inspection with or without the tenant present, usually at move-in and move-out.
Warranty of habitability: See implied warranty of habitability.
Wear and tear: Normal deterioration from everyday use. State deposit laws generally bar charging it to the security deposit, while damage beyond it can be charged. Check the deposit rules for your state.
Work order: A record of a maintenance job: problem, priority, vendor, cost, photos and completion.
Workflow: A defined series of steps, owners and due dates for a recurring process like move-in, renewal or owner onboarding.
Writ of possession: The court order, after an eviction judgment, that lets a sheriff or marshal return possession to the landlord.
Zoning: Local rules on land use. Can limit accessory dwelling units, short-term rentals and the number of unrelated occupants.