Property Management Glossary of Terms Pt. 1
Every industry has its own terminology, the lingo, and it’s easy to forget that those who are outside of the industry may not be as familiar with the property management phrases and acronyms like we are. Below is Part 1 of our property management glossary of terms you should be familiar with for your convenience and education. These are some of the most commonly used terms in property and real estate management.
Features included in or on a property that enhance the desirability or value of the property. Natural amenities include a pleasant or desirable location near water or scenic views. Man-made amenities include swimming pools or gyms.
An accompaniment to the master lease that must be signed by both parties, like adding a pet after the lease has already been signed.
A licensed and state-eligible professional in real estate who buys and sells properties on behalf of others and receives a commission.
The capitalization rate (CAP rate) expresses the anticipated rate of return from a real estate investment property with an aim to assess the investment’s potential and profitability.
An additional signer on the lease or mortgage used to verify the identity of the principle owner or to provide a certain level of surety to the landlord.
Interest paid on original principal and on the accrued and unpaid interest which has accumulated.
A stated fact that must occur before a contract is binding; i.e., an inspection must be done by contractor and buyers must be satisfied with the condition of the property to remove that contingency.
The legal document conveying title to a property.
A house built to include two separate individuals or families within the same structure; i.e., when one family lives on the upper floor and a different family lives downstairs.
The temporary holding by a third neutral party of deposited money pending completion of agreed terms in the sales contract.
The legal response to non-payment of rent or other circumstances where the community must take action to remove (evict) tenant from the home.
Fair Housing Act
The federal law that prohibits discrimination in housing based on race, color, religion, sex, handicap, familial status, and national origin.
The regular recurring costs or charges required in the holding of a property, such as taxes and fire insurance.
A monthly or yearly property management fee in a dollar amount.
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