The landlord glossary

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Numbers

1031 exchange

A tax-deferral arrangement for certain exchanges of investment or business real property under Section 1031. Eligibility, deadlines, and handling of proceeds matter.

1099

A family of IRS information returns reporting particular types of payments or income. The required form, reporting threshold, recipient, and year determine the applicable rule; do not assume one threshold covers every 1099.

A

A

Accessory dwelling unit (ADU)

A separate secondary dwelling on a lot with a primary residence, subject to local definitions and approvals.

ACH

Automated Clearing House, the electronic network that moves money bank to bank in the United States. Most online rent payments and payouts settle over ACH in one to three business days.

Adverse Action

A decision or changed terms unfavorable to an applicant or tenant, based wholly or partly on a consumer report. FCRA notices explain the reporting agency and free-report and dispute rights. Notice may be oral, written, or electronic; use of a credit score adds written or electronic disclosure duties.

Adverse possession

A legal doctrine under which possession meeting jurisdiction-specific requirements for a required period may result in ownership rights. Unauthorized occupancy alone is not enough.

Affordable housing

Housing described by its relationship to household income or offered through a program with specific affordability requirements. Program definitions vary.

Amenities

Facilities or features offered with a rental, such as parking, laundry, storage, or shared recreation space. Availability and charges vary.

Amortization

In lending, amortization is repayment of principal over time through scheduled payments. The payment split, remaining balance and payoff depend on the loan's actual terms.

Apartment

A separate dwelling unit within a building containing other units or uses. Ownership, management, utilities, and shared facilities vary by property.

Application Fee

A fee an applicant pays to cover the cost of screening, such as a credit or background check. Several states cap the amount or require a refund of any unused portion.

Appraisal

A professional opinion of property value prepared for a stated purpose and effective date using a defined scope and supporting analysis.

Appraised value

The value conclusion in an appraisal as of its specified effective date. It can differ from asking price, sale price, or a tax assessment.

Asset management

Planning and oversight focused on an investment property's financial performance, capital needs, risk, and long-term objectives. It differs from the day-to-day work of property management.

Assignment

A transfer of specified lease rights to another party. Consent, the original tenant’s continuing liability, and any release depend on the agreement and governing law.

B

B

Background Check

A review of an applicant's criminal and identity records, often run alongside credit and income checks. It must follow Fair Housing and FCRA rules. See tenant screening .

Balloon mortgage

A mortgage requiring a large final payment because scheduled installments do not fully repay principal by the end of the loan term.

Brownstone

A building described by its brown sandstone exterior, commonly a row house. The term does not determine its number of dwellings or ownership structure.

BRRRR method

An investing sequence often summarized as buy, rehab, rent, refinance, and repeat. It relies on acquisition, repair, operating, and financing assumptions.

C

C

C corporation

A corporation taxed under the regular corporate income-tax rules unless another valid tax election applies. Legal form and tax classification are separate questions.

Cap Rate

Capitalization rate, a property's net operating income divided by its price or value, written as a percentage. A quick yardstick for comparing the return on different rental investments.

Cash Flow

Rental cash receipts less the cash outgoings included for the same period, such as operating costs, debt payments, and reserves. Cash flow differs from taxable income, and an estimate does not guarantee actual results.

Cash-on-cash return

Annual cash flow divided by cash invested, expressed as a percentage. The result depends on which costs and cash contributions are included.

CCPA

The California Consumer Privacy Act, which gives California residents rights to know, delete, and opt out of the sale of their personal information. It can apply to data a landlord collects from applicants and tenants.

Co-signer

A person agreeing to specified lease or payment responsibilities alongside the tenant. The document determines the scope of the promise, occupancy rights, and any joint liability.

Commercial property management

The administration of property used for business, including lease obligations, operating costs, maintenance, and tenant communication.

Companion animal

A broad everyday term for an animal kept for companionship. It does not by itself determine whether an animal qualifies for a housing accommodation.

Concession

An incentive a landlord offers to attract or keep a tenant, such as a free month or reduced rent. It lowers the effective rent without changing the headline rate on the lease.

Credit check

A review of credit-report information for a permitted purpose, such as an authorized rental screening. A credit report and a credit score are distinct.

Credit score

A numerical estimate of credit risk produced by a particular scoring model from credit-report information. Scores differ across models and reporting dates.

D

D

Days on Market

How long a vacant unit has been advertised before a lease is signed. A rising figure usually signals the asking rent is above market or the listing needs work.

Debt Service

The total of principal and interest payments owed on a loan over a period, usually a year. It is the mortgage cost that net operating income must cover for a property to break even.

Disclosure

Information a landlord is legally required to give a tenant, such as a lead paint notice, the owner's contact, or known hazards. Required disclosures vary widely by state and city.

Duplex

A building with two separate dwelling units. The layout, utility arrangements, and occupancy permissions depend on the property.

E

E

Earnest (Holding) Deposit

A pre-lease payment used to reserve a rental under written conditions. Its purpose, refundability, application to rent or deposits, and permitted amount depend on the agreement and local rules.

Eviction

The court-supervised legal process for removing a tenant who has breached the lease, most often for unpaid rent. A landlord must follow the statutory steps; self-help lockouts are illegal in every state. See the eviction guide .

Eviction moratorium

A temporary legal restriction on some eviction actions. It may apply only to specified reasons, tenants, properties, dates, or procedural steps.

F

F

Fair Housing Act

The federal law that bars discrimination in housing based on race, color, religion, sex, national origin, disability, or familial status. Many states and cities add protected classes such as source of income. See fair housing .

FCRA

The Fair Credit Reporting Act, a federal law governing consumer reports, permissible purpose, accuracy, disputes, notices, and secure disposal. Additional federal and state requirements can apply to rental screening.

FICO score

A credit score produced using a FICO scoring model. Different versions and report data can produce different scores for the same person.

Force Majeure

A contract provision addressing specified extraordinary events and their effect on performance. Covered events, notice duties, exceptions, and remedies depend on the clause and applicable law.

Furnished rental

A rental offered with specified furniture or equipment. There is no universal inventory implied by the label.

G

G

Gross lease

A lease in which rent includes specified operating expenses. Some costs may still be excluded or adjustable under the agreement.

Gross Rent

The total rent collected before any operating expenses, vacancy, or debt payments are subtracted. It is the top line of a rental's income, not what the owner keeps.

Ground lease

An agreement to use land owned by another party, often with separate arrangements for buildings or improvements on that land.

Guarantor

A person or entity promising to meet specified obligations if another party does not. A rental guarantee’s scope, conditions, duration, and effect depend on the signed agreement and governing law.

H

H

HOA

A homeowners association that governs a community or condo building, sets rules through covenants, and charges dues. Its rules can limit rentals, so a landlord should confirm an HOA permits leasing before buying.

Home equity line of credit (HELOC)

A revolving borrowing arrangement secured by a home. It commonly has a draw period followed by repayment terms and may carry a variable interest rate.

Homeowner insurance

Insurance designed for the exposures described in an owner-occupied home policy. Renting out the property can change what coverage is appropriate.

I

I

Implied Warranty of Habitability

A legal duty, recognized in most states, that a rental be safe and fit to live in (working heat, plumbing, and a sound structure). It applies even if the lease never mentions it.

Investment property

Property held primarily for income or financial return rather than personal use. Financing and tax treatment depend on the actual use and circumstances.

J

J

Joint and Several Liability

A lease term making each tenant responsible for the full rent and all obligations, not just their share. If a roommate leaves, the others remain on the hook for the entire amount.

L

L

Landlord

The person or entity entitled to rent property to an occupant, with duties and rights set by the agreement and applicable law. A managing agent may act for the owner.

Landlord insurance

Insurance designed for specified rental-property exposures, commonly involving property damage and liability, with coverage varying by policy.

Late Fee

A charge added when rent arrives after the due date or grace period. Many states cap the amount or percentage and require that it be spelled out in the lease.

Lease

A binding contract setting the rent, term, and rules for occupying a property. A fixed-term lease runs for a set period, commonly a year. See leasing .

Lease abstract

A concise summary of important lease terms, such as parties, dates, rent, renewal options, responsibilities, and notice provisions. It does not replace the signed lease.

Lease option

A rental arrangement that includes an option to purchase under specified conditions. The lease and purchase option create distinct obligations.

Leasehold estate

A right to possess and use real property under a lease for an agreed or legally recognized period. It is different from ownership of the property.

Leasing agent

A person who helps market a rental and coordinate prospective renters, applications, and lease preparation within an authorized role.

Lessee / Lessor

Lease roles: the lessor grants the right to possess and use property, and the lessee receives that right under the agreement. Identify the actual parties and any authorized representatives separately from the people occupying the home.

Lien

A legal claim against a property for an unpaid debt, such as a mortgage, unpaid taxes, or a contractor's bill. A lien generally must be cleared before the property can be sold with clean title.

M

M

Market Rent

The rent a unit would command today given comparable listings in the area, its condition, and demand. It is the benchmark for pricing a vacancy or planning a renewal increase.

Master lease

A primary lease under which a party rents a property and may operate or sublease units if the agreement and applicable rules permit it.

Modified gross lease

A lease allocating some costs within base rent and others separately to the tenant. The division must be read from the actual agreement.

Month-to-Month

A tenancy that renews each month until either party gives proper notice to end it. It offers flexibility but less stability than a fixed term. See leasing .

Mortgage

A security instrument tying real property to repayment of a debt; the term is also commonly used for the related home loan.

N

N

Net Operating Income (NOI)

Annual rental income minus annual operating expenses, before mortgage payments and income tax. The core measure of how much a property earns from operations.

Noise complaint

A report that sound from a property or occupant is disturbing someone. The report needs factual review against the lease and local standards.

Notice to Quit

A tenancy notice demanding departure or, where applicable, offering time to correct a violation. The required reason, contents, delivery, timing, and opportunity to cure depend on local law.

O

O

Occupancy

Use of a property by people or businesses. Depending on context, occupancy may concern actual use, approved building use, residential occupancy limits or a measured occupancy rate.

P

P

Percentage lease

A lease, usually commercial, that bases some rent on a specified percentage of the tenant's sales, often alongside base rent.

Personal property

Property other than real estate, such as movable furniture or belongings. Ownership and handling obligations depend on the circumstances.

Pet rent

A recurring charge for an approved pet where permitted by the agreement and applicable law. It is different from a refundable pet deposit or one-time fee.

Prorated Rent

A partial rent amount for a partial month, used when a tenant moves in or out mid-month. It is calculated from the daily rent times the days of occupancy.

Q

Q

Quiet Enjoyment

A tenant's right to use the rented home without unreasonable interference from the landlord, including improper entry. It is implied in nearly every lease even when not written down.

R

R

Real estate broker

A real estate professional whose license authorizes activities defined by state law, often including supervision of licensed agents.

Real estate investment

The purchase or ownership of an interest in real property with an expectation of income, appreciation, or another financial return.

Reasonable accommodation

A change to a housing rule, policy, practice, or service that may be necessary for a person with a disability to use and enjoy a dwelling.

Rent control

A general term for rules that limit rent changes or set conditions for covered rental homes. The governing law decides which homes qualify, how rent is calculated, and what notices or exceptions apply.

Rent escalation clause

A lease provision describing when and how rent changes, such as a scheduled increase or a defined adjustment formula.

Rent ledger

A transaction record of charges, payments, credits, adjustments, and balances for a rental account. It differs from a rent roll summarizing leases.

Rent roll

A dated summary of rental units, tenants or lease accounts, agreed rent, occupancy, and lease timing. It is not the same as a transaction ledger.

Renters Insurance

Insurance for a renter that may include personal-property, personal-liability and additional-living-expense coverage. Payment depends on the policy's covered events, insured people, limits, deductible and exclusions.

ROI

Return on investment, the gain from a rental relative to the money put in, written as a percentage. It is a broad measure used to compare one property or improvement against another.

S

S

Schedule E

The IRS form on which individual landlords report rental income and expenses for the year. Income, repairs, depreciation, and other costs flow through it to the personal return. See accounting and reports .

Security Deposit

Money collected under a rental agreement as security for a renter's obligations. The agreement and current law determine how the charge is classified, held, used, accounted for, and returned.

Single-family home

A property designed or approved for one household dwelling, often detached. Legal occupancy and permitted uses depend on local rules.

Slumlord

An informal, negative label for a landlord alleged to neglect housing conditions or responsibilities. It is not a precise legal classification.

Squatter

A person occupying property without the owner's permission or a recognized right to occupy, subject to jurisdiction-specific facts and law.

Sublease

An arrangement where a tenant rents the unit, or part of it, to a third party while remaining responsible to the landlord under the original lease. It usually needs the landlord's written consent.

Sublet

An everyday term for renting all or part of a leased space to another occupant under a sublease arrangement. It does not automatically release the original tenant.

T

T

Tenant

A person or entity with a right to occupy property under a rental agreement or applicable tenancy law. Tenancy status is determined by facts and law, not a portal label.

Tenant at will

A tenant occupying property under an arrangement that can be ended according to applicable law rather than a fixed end date. Terminology varies by jurisdiction.

Tenant improvements

Alterations made to a leased space for the occupant's use. Permission, payment, ownership, and restoration obligations depend on the lease and law.

Tenant Screening

The process of evaluating an applicant through credit, background, income, and rental history before approving a lease. It must follow Fair Housing and FCRA rules. See tenant screening .

Tenant screening report

A report supplied for a rental review that may combine credit, rental history, employment or other records and a score or recommendation. Its contents depend on the reporting company and selected package; it differs from a credit report and a submitted application.

Therapy animal

An animal that participates in a therapeutic activity or visit. The label alone does not establish a housing accommodation or public-access right.

Townhouse

A dwelling commonly sharing one or more side walls with neighboring dwellings. Ownership, association duties, and common areas vary.

Triple net lease (NNN)

A lease that allocates specified property taxes, insurance, and maintenance or operating expenses to the tenant in addition to rent. Definitions and exclusions vary by contract.

Triplex

A building containing three separate dwelling units. Shared spaces, utilities, and legal unit status require property-specific review.

Turnkey property

A marketing description for a property presented as ready for use, occupancy, or operation. It is not a standardized guarantee of condition or performance.

Turnover

The full cycle of one tenant moving out and another moving in, including cleaning, repairs, marketing, and lost rent during the vacancy. Lower turnover is one of the biggest drivers of rental profit.

U

U

URLTA

The Uniform Residential Landlord and Tenant Act, a model law that many states adapted to define landlord and tenant rights and duties. Whether and how it applies depends on each state's own statute.

Utilities

Services such as water, electricity, gas, sewer, and sometimes internet or waste collection that support use of a home.

V

V

Vacancy loss

Rental income forgone while a rentable unit is unoccupied. A budget allowance is an estimate, while actual vacancy loss reflects a specific period.

Vacancy Rate

The share of rentable time or units sitting empty over a period, written as a percentage. A higher rate means more lost income and is a key input to any cash flow projection.

Vacation rental

A furnished property rented for temporary stays, often for travel or leisure. Local definitions, permits, taxes, and occupancy rules vary.

Virtual assistant

A person or software service that performs defined administrative tasks remotely. In rental operations, that might include organizing messages, reminders, or records.

W

W

Workforce housing

Housing intended to serve working households within an identified income range. The phrase has no single nationwide program definition.

Y

Y

Yield

The annual income a property generates relative to its cost or value, written as a percentage. Gross yield uses rent before expenses; net yield subtracts operating costs first.

Z

Z

Zoning

Local rules governing land uses and development, such as permitted residential uses, density, setbacks, or building form. Other codes and permits may also apply.