Glossary of Terms
at LeaseRunner

Are you confused by all the terms in your lease agreements, addendums, or rental management documents?

a

Addendum

Additional document added to a lease to modify or include terms.

Amenities

Features or services provided in a rental property, such as a gym or pool.

Application Fee

Non-refundable fee paid by tenants to cover the cost of processing rental applications.

Accelerated Cost Recovery System (ACRS)

Depreciation method allowing accelerated write-offs of property.

ACH Rent Collection

Electronic system for collecting rent payments via Automated Clearing House.

Autopay

Tenant’s option to set up automatic rent withdrawal on a specific day for a specific rent amount.

b

Background Check

Investigation into a tenant's history, including credit and criminal records.

Bank Account Balance Verification

Process of confirming a tenant's bank account balance for financial reliability.

Banking History Report

Document detailing a tenant's past banking activities, used in screening.

c

Credit Report

Financial report detailing an individual's credit history timely payments and current credit balances.

Criminal Report

Background check focusing on an individual's criminal history.

Cash Flow Report

Analysis of an individual's income and expenses to assess financial stability.

d

Digital Rental Application

Online form for prospective tenants to apply for rental properties.

Document Creation

Process of generating legal documents, such as lease agreements, for rentals.

Deposit

Sum of money paid by a tenant as security for performance under a lease.

e

Eviction Check

Screening report that reveals any prior eviction records of a prospective tenant.

Electronic Signature

Digital method for signing documents, such as lease agreements.

f

Fair Credit Reporting Act (FCRA)

U.S. federal law regulating the collection and use of consumer credit information.

Full Payout Lease

Lease in which the lessor recovers the full cost of the asset plus a return on investment.

Fair Housing Act

Federal law prohibiting discrimination in housing-related activities. 

g

Gross Income

Total income earned before any deductions, taxes, social security, medical, etc. used to assess tenant affordability.

Guarantor also known as Cosigner

Person who agrees to be responsible for a tenant's lease obligations if the tenant defaults.

Grace Period

Additional time allowed for a tenant to make a payment without incurring a penalty.

h

Holding Deposit

Payment by a prospective tenant to hold a rental property before signing a lease.

HUD (Department of Housing and Urban Development)

U.S. government agency overseeing housing policies.

Habitable

Condition of a rental property being safe and suitable for living.

i

Inspection

Examination of a rental property to assess its condition before or after tenancy.

Interest Rate

Percentage charged on a loan or earned on an investment over a period of time.

Inventory

List of items and their condition in a rental property at the start of a tenancy.

j

Joint Lease

Lease agreement shared by two or more tenants.

Judgment for Possession

Legal ruling allowing a landlord to regain property possession.

Just Cause Eviction

Eviction based on specific legal reasons, such as non-payment of rent.

k

Key Deposit

Refundable fee collected for providing keys to the rental property.

Kick-Out Clause

Lease provision allowing early termination under certain conditions.

l

Late Fee

Penalty charged when rent is paid after the due date.

Lease Agreement

Contract specifying the terms of renting a property.

Landlord-Tenant Laws

Legal regulations governing rental property relationships.

m

Maintenance Request

Tenant's formal request for repairs or property upkeep.

Month-to-Month Lease

Flexible lease agreement renewing each month.

Market Rent

Average rental price for similar properties in a given area.

n

Notice to Vacate

Written notification from tenant or landlord to terminate a lease.

Non-Refundable Deposit

Deposit that the tenant forfeits regardless of property condition.

Net Lease

Lease requiring tenants to pay property taxes, insurance, and maintenance.

o

Occupancy Rate

Percentage of rented units in a property.

Option to Renew

Clause allowing tenants to extend the lease term.

Online Rent Payment

System enabling tenants to pay rent electronically.

p

Pet Deposit

Refundable or non-refundable fee for potential pet-related damages.

Property Management

Services handling rental property operations on behalf of property owners.

Pro-Rated Rent

Adjusted rent based on the number of days a tenant occupies a property.

q

Quitclaim Deed

Legal document transferring property ownership without guarantees.

Qualified Tenant

Tenant meeting all screening and financial criteria.

Quarterly Payments

Rent payments made every three months.

r

Rental Agreement

Legal document specifying terms between landlord and tenant.

Rent Control

Government regulation limiting the amount a landlord can charge for rent.

Rental History

Record of a tenant's past leasing behavior and payment reliability.

s

Security Deposit

Refundable sum held to cover potential property damages.

Sublease

Agreement where a tenant rents the property to another individual.

Screening Report

Document assessing a tenant's credit, rental, and criminal history.

t

Tenant Improvement

Modifications made to a rental property to meet tenant needs.

Termination Clause

Lease provision outlining conditions for ending the agreement.

Trust Account

Account used by property managers to hold tenant security deposits.

u

Utilities Included

Lease term where the landlord covers utility costs.

Unlawful Detainer

Legal action taken to evict a tenant unlawfully holding possession.

Underwriting

Evaluation of financial risks involved in a rental application.

v

Vacancy Rate

Percentage of unoccupied rental units in a property.

Verification of Employment (VOE)

Confirmation of a tenant's current job status and income.

w

Walkthrough Inspection

Final property check before a tenant moves in or out.

Wear and Tear

Normal deterioration of a property due to regular use.

Withholding Rent

Tenant action of not paying rent due to unresolved property issues.

z

Zero Deposit Lease

Lease agreement requiring no upfront security deposit.

Zoning Ordinance

Local laws regulating land use and property development.

1031 Exchange

Tax-deferred exchange of investment properties under IRS rules.