Property Management Glossary of Terms Pt. 3
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 3 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.
R
Real Estate Agent
A person who is normally licensed by the state who represents a broker and assists in negotiating a real estate transaction, usually for a commission or fee.
Recurring Costs
Expenses that a buyer can expect again, year after year, such as property taxes, insurance, and interest.
Rent
A fixed-amount payment made by the tenant to the landlord each month.
Rent to Own
A leasing agreement that gives the tenant an option to purchase the property when the lease is up.
Renter Insurance
An insurance policy that mainly covers a tenant’s personal belongings and liabilities.
Return on Investment (ROI)
A metric showing the profit an investor makes on their investment property as a percentage of the investment cost.
S
Security Deposit
A payment the tenant makes to the landlord as security in the event that there’s damage to the property.
Short-Term Lease
Any lease that’s shorter than the standard 12-month lease.
Sublease / Subletting
Renting a property by a tenant to a third-party tenant for a segment of the original tenet’s leasing agreement.
T
Tenant
The person occupying land, a building, or a specified unit under an agreement with the landlord for a fixed period.
Term
The length of a lease.
Title
A legal document stating a person’s right to a property.
U
Utilities
Services including electricity, garbage, gas, sewer, and water.
V
Vacant Property
An empty property, with no people or personal items inside.
Vacancy Rate
The ratio of vacant units in the building.
W
Writ
The official document filed to deem possession of a property during an eviction, allowing a forced eviction by a law enforcement officer.
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