Property Management Glossary: Assignment
A
Abandonment
When a tenant leaves a property without providing notice and without making arrangements for rent payment.
Acceptance
The act of a landlord or property manager taking possession of a property from a tenant, typically at the end of a lease term.
Access
The right of a landlord or property manager to enter a property for maintenance, repairs, or inspections.
Additional Rent
Rent charged for additional services or amenities, such as parking or storage.
Addendum
A document that amends or supplements a lease agreement.
Advance Rent
Rent paid in advance, typically for the first month of a lease term.
Advertising Fee
A fee charged to a landlord for marketing a property for rent.
Agreement
A legal document that outlines the terms of a landlord-tenant relationship.
Amenities
Features or services offered by a property, such as a pool, fitness center, or laundry facilities.
Amortization
The gradual repayment of a loan through regular payments.
Annual Percentage Rate (APR)
The total cost of borrowing money, including interest and fees, expressed as a percentage.
Application Fee
A fee charged to potential tenants to cover the cost of processing their applications.
Appraisal
An estimate of the value of a property, typically conducted by a licensed appraiser.
Arbitration
A form of alternative dispute resolution in which a neutral third party makes a binding decision on a dispute.
Assignment
The transfer of ownership of a property from one person to another.
Property Management Glossary: Assignment
A
Abandonment
When a tenant leaves a property without providing notice and without making arrangements for rent payment.
Acceptance
The act of a landlord or property manager taking possession of a property from a tenant, typically at the end of a lease term.
Access
The right of a landlord or property manager to enter a property for maintenance, repairs, or inspections.
Additional Rent
Rent charged for additional services or amenities, such as parking or storage.
Addendum
A document that amends or supplements a lease agreement.
Advance Rent
Rent paid in advance, typically for the first month of a lease term.
Advertising Fee
A fee charged to a landlord for marketing a property for rent.
Agreement
A legal document that outlines the terms of a landlord-tenant relationship.
Amenities
Features or services offered by a property, such as a pool, fitness center, or laundry facilities.
Amortization
The gradual repayment of a loan through regular payments.
Annual Percentage Rate (APR)
The total cost of borrowing money, including interest and fees, expressed as a percentage.
Application Fee
A fee charged to potential tenants to cover the cost of processing their applications.
Appraisal
An estimate of the value of a property, typically conducted by a licensed appraiser.
Arbitration
A form of alternative dispute resolution in which a neutral third party makes a binding decision on a dispute.
Assignment
The transfer of ownership of a property from one person to another.
B
Base Rent
The rent charged for the use of a property, excluding additional fees or charges.
Broker
A person who negotiates the sale or lease of property on behalf of another party.
Building Code
A set of regulations that govern the construction and maintenance of buildings.
Buy-to-Let
A property that is purchased for the purpose of renting it out to tenants.
Capital Expenditure
A large expense that is incurred to improve or maintain a property, such as a new roof or HVAC system.
Carpet Cleaning Fee
A fee charged to tenants for the cleaning of carpets at the end of a lease term.
Certificate of Occupancy (CO)
A document that certifies that a property is safe and habitable.
Common Area
A shared space in a multi-unit property, such as a lobby, hallway, or laundry room.
Community Association
An organization that governs a planned community or subdivision.
Comparable Property
A similar property that is used to determine the value of a subject property.
Condition Report
A document that describes the condition of a property at a specific point in time.
Conflict of Interest
A situation in which a person has a personal interest that may interfere with their ability to act impartially.
Construction Loan
A loan that is used to finance the construction of a property.
Contract
A legally binding agreement between two or more parties.
Cooperative
A type of housing ownership in which residents own shares in a corporation that owns the property.
Cosigner
A person who agrees to be responsible for a tenant’s rent if the tenant fails to pay.
Credit Check
A review of a potential tenant’s credit history to assess their financial stability.
Credit Score
A numerical representation of a person’s creditworthiness, based on their credit history.
Curb Appeal
The attractiveness of a property from the street view.
Custodian
A person who is responsible for the care and maintenance of a property.
Damage Deposit
A sum of money held by a landlord as security for potential damages to a property.
Days on Market
The number of days that a property is listed for rent before it is leased.
Default
A failure to fulfill a legal obligation, such as paying rent or maintaining a property.
Deferred Maintenance
Maintenance that has been postponed or neglected.
Deposit
A sum of money that is held by a landlord as security for potential damages to a property.
Depreciation
A loss in value of a property over time.
Discrimination
The unfair treatment of a person based on their race, religion, sex, or other protected characteristics.
Disturbance
An interruption or interference with the use and enjoyment of a property.
Document Fee
A fee charged to tenants for the preparation and processing of lease documents.
Drive-By Appraisal
An appraisal that is conducted without entering the property.
Due Diligence
The process of investigating a property before purchasing or leasing it.
Dwelling Unit
A unit in a multi-unit property that is intended for residential use.
Earnest Money Deposit
A deposit that is made by a potential buyer to show their good faith in purchasing a property.
Egress
A way out of a building, such as a door or window.
Eminent Domain
The right of a government to take private property for public use.
Energy Efficiency
The ability of a property to use energy efficiently.
Environmental Impact Statement (EIS)
A document that assesses the potential environmental impacts of a project.
Escrow
An account held by a neutral third party where funds are deposited until a specific condition is met.
Eviction
The legal process of removing a tenant from a property.
Exclusive Listing Agreement
An agreement between a landlord and a real estate agent that gives the agent the exclusive right to market a property for rent.
Expiration Date
The date on which a lease term ends.
Fair Housing Act (FHA)
A federal law that prohibits discrimination in housing based on race, religion, sex, or other protected characteristics.
Fair Market Rent
The amount of rent that a property would typically rent for in the current market.
Fee Simple
The highest level of ownership in a property, which gives the owner the right to use, sell, or lease the property as they see fit.
FHA Loan
A government-backed loan that is available to first-time homebuyers with low-to-moderate incomes.
Fixture
An item that is permanently attached to a property, such as a sink or stove.
Flood Insurance
Insurance that protects a property from damage caused by flooding.
For Sale By Owner (FSBO)
A property that is being sold by the owner without the use of a real estate agent.
Foreclosure
A legal proceeding in which a lender takes possession of a property after the borrower has defaulted on their mortgage.
Form 1099-MISC
A tax form that is used to report income from self-employment or freelance work.
Foundation
The part of a building that supports the structure.
Freehold
The ownership of a property in perpetuity.
Full-Service Lease
A lease in which the landlord is responsible for all maintenance and repairs.
Furnished Apartment
An apartment that is rented with furniture.
Gross Rent
The total amount of rent paid by a tenant, including base rent and additional fees.
Ground Lease
A lease that gives the tenant the right to use the land for a period of time, but not the right to own the land.
Guarantor
A person who agrees to be responsible for a tenant’s rent if the tenant fails to pay.
Hazard Insurance
Insurance that protects a property from damage caused by fire, theft, or other hazards.
Holding Fee
A fee that is charged to a potential tenant to hold a property off the market while they are completing the application process.
Home Inspection
An inspection of a property that is conducted by a qualified professional to identify any potential problems.
Homeowner’s Association (HOA)
An organization that governs a homeowners association, which is a community of homes that are owned by individuals.
Homeowners Insurance
Insurance that protects a homeowner from damage to their property and liability for injuries that occur on their property.
Housing Authority
A government agency that provides housing assistance to low-income families.
Housing Choice Voucher Program (Section 8)
A federal program that provides rental assistance to low-income families.
HVAC
The heating, ventilation, and air conditioning system in a building.
Independent Contractor
A person who is hired to perform a specific task but is not an employee of the person who hired them.
Inspection
A visual examination of a property to assess its condition.
Insurance
A contract that provides financial protection against losses or damages.
Interest
The charge for borrowing money.
Interim Rent
Rent that is paid during the construction or renovation of a property.
Investment Property
A property that is purchased for the purpose of generating income through rent or appreciation.
Joint Tenancy
A type of ownership in which two or more people hold title to a property jointly.
Junior Lien
A lien that is subordinate to another lien.
Late Fee
A fee that is charged to a tenant for paying rent late.
Lease
A contract that outlines the terms of a landlord-tenant relationship.
Leasehold
The right to occupy and use a property for a specified period of time.
Lease Term
The period of time for which a lease is in effect.
Legal Description
A description of a property that is used in legal documents.
Lien
A legal claim against a property that secures a debt or obligation.
Limited Liability Company (LLC)
A type of business entity that provides limited liability to its owners.
Loan-to-Value (LTV) Ratio
The ratio of the loan amount to the value of the property.
Lockbox
A secure box that is used to collect rent payments.
Long-Term Lease
A lease that has a term of more than one year.
Lot
A piece of land.
Maintenance
The care and upkeep of a property.
Management Agreement
A contract between a landlord and a property manager that outlines the terms of the management relationship.
Market Rent
The average rent that is charged for similar properties in a given area.
Master Lease
A lease that is entered into between a landlord and a tenant who then subleases the property to other tenants.
Mechanic’s Lien
A lien that is filed by a contractor or supplier who has not been paid for work or materials provided to a property.
Median Rent
The midpoint of the range of rents that are charged for similar properties in a given area.
Mixed-Use Property
A property that is used for both residential and commercial purposes.
Mold
A type of fungus that can grow on damp surfaces.
Mortgage
A loan that is secured by a property.
Move-In Fee
A fee that is charged to a tenant for moving into a property.
Move-Out Inspection
An inspection of a property that is conducted at the end of a lease term to assess the condition of the property.
Multiple Listing Service (MLS)
A database of properties that are listed for sale or rent by real estate agents.
Net Operating Income (NOI)
The income that a property generates after deducting operating expenses.
Non-Refundable Fee
A fee that is not refundable, even if the tenant does not move into the property.
Notice to Vacate
A legal document that is given to a tenant to inform them that they must vacate a property.
Occupancy Permit
A document that is issued by a local government agency that certifies that a property is safe and habitable.
Offer to Purchase
A written offer to purchase a property.
Operating Expenses
The expenses that are associated with owning and operating a property, such as property taxes, insurance, and maintenance.
Option to Renew
A clause in a lease that gives the tenant the right to renew the lease for an additional term.
Owner-Occupied Property
A property that is owned and occupied by the owner.
Parking
A place where vehicles can be parked.
Partnership
A type of business entity that is owned by two or more people.
Passive Income
Income that is generated without the need for active participation.
Paystub
A document that shows a person’s earnings and deductions for a specific pay period.
Penalty Fee
A fee that is charged to a tenant for violating the terms of their lease.
Percentage Lease
A lease in which the rent is based on a percentage of the tenant’s sales.
Personal Property
Property that is not permanently attached to a building, such as furniture and appliances.
Pest Control
The control of pests, such as rodents and insects.
Pet Deposit
A deposit that is charged to a tenant who has a pet.
Planned Unit Development (PUD)
A type of development that combines residential and commercial uses.
Plumbing
The system of pipes and fixtures that carries water and waste in a building.
Power of Attorney
A legal document that gives one person the authority to act on behalf of another person.
Pre-Approval
A conditional approval for a loan that is based on the borrower’s financial information.
Premises
The land and buildings that are owned or leased by a person or organization.
Private Mortgage Insurance (PMI)
Insurance that is required by lenders for borrowers who have a down payment of less than 20%.
Property
Land, buildings, and other improvements that are owned by a person or organization.
Property Condition Report
A document that describes the condition of a property at the beginning of a lease term.
The business of managing properties for owners.
Property Tax
A tax that is levied on the value of a property.
Prorated Rent
Rent that is calculated for a partial month.
Public Housing
Housing that is provided by a government agency to low-income families.
Purchase Agreement
A contract that outlines the terms of a property purchase.
Quiet Enjoyment
The right of a tenant to peacefully occupy a property without interference from the landlord.
Real Estate Agent
A person who is licensed to sell or rent real estate.
Real Estate Broker
A person who is licensed to oversee real estate transactions.
Real Property
Land and buildings that are permanently attached to the land.
Realtor
A real estate agent who is a member of the National Association of Realtors.
Recession
A period of economic decline.
Refinance
To replace an existing mortgage with a new one, typically at a lower interest rate.
Repairs
The restoration of a property to its original condition.
Rent
The payment that a tenant pays to a landlord for the use of a property.
Rent Control
A law that limits the amount of rent that can be charged for certain types of properties.
Rental Application
A form that is used to collect information from potential tenants.
Rental Income
The income that is generated from renting out a property.
Rental Property
A property that is rented out to tenants.
Repair Request
A request from a tenant to the landlord to make repairs to the property.
Replacement Cost
The cost of replacing a property with a similar one.
Residential Property
A property that is used for residential purposes.
Return on Investment (ROI)
The percentage return on an investment, calculated by dividing the income generated by the investment by the cost of the investment.
Right of First Refusal
A clause in a lease that gives the tenant the right to purchase the property before it is offered to other buyers.
Risk Management
The process of identifying and mitigating risks.
Security Deposit
A deposit that is charged to a tenant to cover potential damages to the property.
Self-Managed Property
A property that is managed by the owner, rather than by a property manager.
Selling Agent
The real estate agent who represents the seller in a property sale.
Shared Accommodation
A type of housing in which multiple people share a common living space.
Short-Term Lease
A lease that has a term of less than one year.
Single-Family Home
A home that is designed for a single family.
Slumlord
A landlord who rents out properties that are in poor condition.
Smart Home
A home that is equipped with technology that allows it to be controlled remotely.
Square Footage
The area of a property, measured in square feet.
Sublease
A lease in which the tenant rents out the property to another person.
Tenant
A person who rents a property from a landlord.
Tenant Screening
The process of evaluating potential tenants to determine their suitability for renting a property.
Term
The length of time for which a lease is in effect.
Termite Inspection
An inspection of a property to determine if it has termites.
Title
The legal document that proves ownership of a property.
Title Insurance
Insurance that protects the owner of a property from claims against the title.
Townhouse
A type of housing that is similar to a single-family home, but is attached to other units on one or both sides.
Trade Fixture
A fixture that is used in a business and can be removed without damaging the property.
Transfer of Ownership
The process of transferring ownership of a property from one person or organization to another.
Triple Net Lease
A lease in which the tenant is responsible for all operating expenses, including property taxes, insurance, and maintenance.
Utilities
Services such as water, electricity, and gas that are provided to a property.
Vacancy Rate
The percentage of properties in a given area that are not occupied.
Walkthrough
An inspection of a property, typically conducted with the landlord and tenant present.
Warranty
A guarantee that a product or service will perform as promised.
Zoning
The regulations that govern the use of land in a particular area.