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.