37 Property Management Terms You Need to Know

Whether you’re a property owner or a property manager, building a deep understanding of property management terms is the key to going from novice to pro. To help you get started and provide you with a solid reference point, here’s a look at the most common property management terms you should know.

Common Property Management Terms

1. Short-term Leases: A short-term lease agreement is any lease agreement that has a duration of less than the standard lease term of 12 months. Common short-term lease agreements include month-to-month lease agreements or six-month lease agreements.
2. Credit Reports: A credit report is an official record of an individual’s credit history, debt payments, loans, and more collected by the three major credit bureaus, Experian, Equifax, and TransUnion. Landlords and property managers use credit reports during the tenant screening process to determine whether a prospect would make a good financial fit for the unit (i.e., that a tenant could comfortably afford to pay rent).
3. Background Checks: A background check is a document that pulls a prospective renter’s criminal, financial, and rental history. As different background check services pull background checks, the information on a credit report may differ from one background service to another.
4. Lease Renewal: Once a tenant’s lease term has expired, landlords and tenants have the opportunity to continue the rental agreement through a lease renewal. If a landlord or property manager chooses to offer a lease renewal option, it’s essential to offer it well in advance of the lease’s expiration.
5. Rental History Reports: Rental history reports are records of an individual’s renting history from the first time they rented a unit to their last rental unit. Landlords and property managers use rental history reports to determine whether a prospective tenant has a poor or positive history as a renter.
6. Cosigners / Guarantors: In rental situations where a prospective tenant does not have a rental history, credit history, or income that inspires confidence in the landlord or property manager, the prospect may use a cosigner or guarantor to either split rent as a cosigner roommate or to serve as a designated guarantor to cover the rent if the renter can’t pay.
7. Utilities: Apartment utilities can include services such as gas, fuel, electricity, water, and garbage collection. Additionally, it’s becoming more and more common for WiFi and cell phone service to be included in utility budget line items.
8. Subletting: Subletting is a rental arrangement in which a tenant rents out their unit to a new tenant. That said, landlords and property managers are usually a part of the vetting process in a subletting situation.
9. Breaking Lease: Both tenants and landlords can break a lease agreement by violating one or more of the lease agreement’s terms. Some of the most common ways to break a lease are to move out before the lease agreement’s stated term, cause extensive damage to the unit, or fail to provide a habitable unit.
10. Month-to-Month Lease: A month-to-month lease agreement is a lease that lasts for a shorter lease term of just one month or 31 days. This type of lease agreement is perfect for renters looking for extended accommodation but are unsure of their long-term living situation.
11. Rent-to-Own: Rent-to-own is a unique rental agreement type in which a landlord gives a renter the option to purchase a home after their rental term has expired. That said, even when a landlord offers a rent-to-own agreement, tenants typically don’t have to purchase the property. 12.Rent Roll: A rent roll is a document that helps landlords and property managers keep track of rent payments, lease agreement terms, and other essential details related to their rentals. Landlords can use this document for hunting down unpaid rent, making decisions regarding lease renewal, and more. 13.Late Fees: Late fees are a financial penalty incurred by tenants who are late in paying their rent. Local laws may limit these fees but are generally meant to encourage renters to pay their rent on time. 14.Lease Termination Letter: A lease termination letter is a correspondence sent by a landlord or property manager to a current tenant that notifies the tenant that their lease is nearing its expiration and will not be renewed.
12. Lease Agreement: A lease agreement is a legally binding agreement between a tenant and a landlord or property manager that outlines the terms and conditions of renting an apartment. These documents are unique from unit to unit and are a standard part of the rental process.
13. Holding Deposits: A holding deposit is a deposit collected by landlords who are in the process of renting a unit to a new tenant. This deposit protects landlords against wishy-washy tenants and protects a tenant’s interest in the unit, so it is not rented out from under their feet.
14. Curb Appeal: The measure of how good your property looks on the outside, including its facade and any landscaping.
15. Landlord Insurance: Landlord insurance is a specialty insurance policy designed to protect landlords from the financial risks of renting out their units. These policies typically cover the full property, units, and everything inside.
16. Rent Concessions: Landlords and property managers may offer rent concessions, incentives offered to attract renters to fill vacant apartments. These concessions may typically come in the form of discounts on rent or other financial benefits.
17. Squatter Rights: Squatter rights are legal rights given to individuals who move into vacant properties, live there for an extended period, and attempt to gain ownership of it through adverse possession. Unfortunately, if a squatter stays for a long enough time, landlords may have a long court battle ahead of them to evict the squatter.
18. 3D Tours: A 3D apartment tour is an interactive virtual apartment tour created using special software that stitches photos of the apartment together. Most 3D tour software solutions allow viewers to “move through” the apartment and explore it from the comfort of their own homes.
19. Video Tours: An apartment video tour is a digital tour video that can be shared with prospective renters, especially those renting sight unseen. An apartment video tour differs from a 3D tour, as a 3D tour creates a more immersive experience by stitching photos of the apartment together.
20. Renting Sight Unseen: Renting sight unseen is a unique rental situation in which a renter chooses to rent an apartment without seeing it in person. This type of rental situation saw a definite rise during the pandemic due to travel restrictions and safety measures.
21. Screening Tenants: The tenant screening process is one in which a landlord or property manager vets a prospective tenant by reviewing their credit history, employment status, financial stability, rental history, and more. It’s a necessary part of the rental process that helps landlords and property managers avoid renting to tenants that don’t fulfill the unit’s requirements.
22. Pet Deposit: Landlords or property managers may collect a pet deposit from tenants who own pets that live with them in the rental property. Pet deposits are used to cover any damages or expenses incurred by the landlord due to damages caused by the pet, such as deep cleaning post-move out, biting or clawing damage, and more.
23. Pet Policies: A pet policy is a series of regulations and requirements set by landlords or property managers that must be followed by tenants with pets. These policies may touch on details such as breed, size, pet number limits, and more, if a pet policy term is violated, it may be grounds to begin the eviction process.
24. Notice to Quit: A notice to quit is a formal letter sent by a landlord or property manager to a tenant to inform them of a lease agreement violation they committed and need to rectify or quit. These notices are essential as both documented correspondence and following the legal process of eviction.
25. Notice to Vacate: A notice to vacate is a formal letter sent by a tenant to a landlord or property manager to inform them of the tenant’s intention to vacate or move out of the apartment. Notice to vacate letters can be sent at any time, even in the event of a lease breach.
26. Fair Housing Act: The Fair Housing Act is a piece of legislation enacted in 1968 to combat discrimination in the rental industry. Today, the Fair Housing Act is a comprehensive law that prohibits and punishes unlawful discrimination on the basis of disability, race or color, national origin, sex, religion, or family status.
27. Reasonable Accommodations and Modifications: Reasonable accommodations and modifications refer to legally required changes or services that must be provided to disabled tenants that enable them to use, enjoy, and live in a space. The Americans with Disabilities Act (ADA) protects a tenant’s right to reasonable accommodation.
28. Vacancy Rate: When it applies to a landlord or property manager’s rental portfolio, the apartment vacancy rate is the percentage of total unoccupied, available rentals. At a national level, the apartment vacancy rate is the percentage of total unoccupied units across the nation.
29. Single-family Rental: A single-family rental is a single-unit property that a landlord rents out. Typically, single-family rentals are rented out as for-rent-by-owner, with the homeowner living elsewhere.
30. Multi-family: A multifamily home is a single property with multiple separate units or apartments. Duplex, townhouses, twin homes, and apartment complexes are considered multi-family homes.
31. Duplex: A duplex is a home that is split into two separate living spaces or apartments, each with an independent, private entrance.
32. Condo: A condo is an individually owned residential unit located within an apartment community or complex. These apartments can be rented out to tenants if the owner chooses and the HOA (if applicable) allows renting.
33. Townhome: A townhome or townhouse is an apartment unit within a community that can range from tiny to tremendous. These homes are typically located within residential areas, share walls, and offer more space than a traditional apartment.
34. Eviction: Eviction is the legal process that allows landlords to force the removal of a tenant on the grounds of a lease breach. Evictions should always be done per local, state, and federal laws, though, unfortunately, the process can take several months to resolve.