Glossary

The rate at which available properties are leased or sold in a specific real estate market during a given time period.

The process of purchasing a property or portfolio of properties, typically involving financial analysis, due diligence, and negotiations.

The process of gradually paying off a debt over time through regular payments.

The total cost of borrowing, including interest and fees, expressed as an annual percentage of the loan amount.

A form tenants fill out to express interest in a rental unit. It typically includes personal, employment, and financial info used for screening.

The process of overseeing and managing a real estate portfolio, including making decisions about acquisitions, financing, and operations to maximize returns.

A legal transfer of lease rights and obligations from the current tenant (assignor) to another party (assignee). The assignee becomes responsible for the lease terms.?

Lease terms that extend the lease for an additional term (like month-to-month).

A fee charged when a property is sold, typically a percentage of the sale price. This is often used in syndicated investments.

A review of a tenant's criminal history, eviction record, and other public data to help landlords make informed leasing decisions.

The minimum rent payable by a tenant, excluding additional charges like utilities or maintenance fees.

The original cost of a property, including the purchase price, acquisition fees, and any other costs associated with acquiring the property.

A violation of any terms or conditions in a lease agreement by either the landlord or tenant.

The point at which a property's income equals its expenses, with no profit or loss. It is critical for assessing the property's viability.

When a tenant ends the lease early. Depending on the lease terms, this may involve penalties or extra fees.

A licensed professional who facilitates real estate transactions by connecting buyers with sellers or tenants with landlords.

A metric used to estimate the return on investment for a property, calculated as the Net Operating Income (NOI) divided by the property value.

The net income generated by a property after deducting operating expenses, taxes, and debt service. Positive cash flow indicates profitability.

A ratio that measures the annual pre-tax cash flow relative to the amount of cash invested in the property.

The fees and expenses associated with finalizing a property transaction, such as title insurance, inspection fees, and lender fees.

An individual or company who signs a lease agreement alongside the primary tenant, agreeing to be responsible for rent payments if the tenant defaults.

Fees paid by tenants to cover the upkeep of shared spaces in a property, such as lobbies, hallways, and parking lots.

Temporary incentives or discounts offered by landlords to attract tenants. These may include a free month of rent, waived application fees, or reduced security deposits. Concessions are often used during lease-up periods, in competitive markets, or to fill vacancies quickly.

An evaluation of a tenant's credit history and score, used to assess financial reliability and ability to pay rent on time.

The amount of money needed to cover the repayment of both principal and interest on a loan.

A financial ratio that compares the amount of debt used to finance a property relative to the amount of equity invested in it.

Failure to fulfill obligations in a lease agreement, such as non-payment of rent.

A sum of money held by the landlord as security against potential damages or unpaid rent.

The reduction in the value of a property over time, used as a tax deduction for the investor. It reflects wear and tear or obsolescence.

A fully online leasing process - from application to signing - designed for speed, convenience, and accessibility.

The investigative process undertaken by buyers before purchasing a property, involving property inspections, financial audits, and reviewing legal documentation.

A predefined charge that tenants must pay if they end the lease before the agreed-upon term.

The difference between a property's market value and the outstanding balance on any mortgages or loans, representing the investor's ownership stake.

A metric that represents the total return on investment as a multiple of the initial equity invested in a property.

A provision in a lease that allows for periodic increases in rent, often tied to inflation or operating costs.

A financial arrangement where a third party holds funds or documents during a transaction, ensuring that the deal terms are met by both parties.

The legal process by which a landlord removes a tenant from a rental property due to lease violations or non-payment.

A plan for how an investor intends to sell or exit a property investment, often to maximize returns or minimize losses.

Federal, state, and local regulations that protect renters from discrimination based on race, gender, religion, disability, and more. These laws ensure equal access to housing opportunities.

The estimated price at which a property would sell on the open market between a willing buyer and seller.

The method by which an investor raises capital to purchase a property, often through loans, mortgages, or partnerships.

A type of mortgage where the interest rate remains the same throughout the term of the loan, providing predictable monthly payments.

A lease agreement that spans a specific duration, such as 12 months, after which it may be renewed or terminated.

An area that is at risk of flooding, often requiring additional insurance or affecting the property's value and insurability.

The legal process by which a lender takes possession of a property after the borrower fails to make mortgage payments.

A short window (usually a few days) after rent is due during which tenants can pay without a late fee being charged.

The total income generated by a property, before any expenses or deductions, including rent and other sources of revenue such as parking fees.

A lease where the tenant pays a fixed rent amount, and the landlord covers all property expenses like taxes, insurance, and maintenance.

A ratio that is used to evaluate the value of an income-producing property by dividing its price by its gross annual rental income.

An individual who agrees to pay a tenant's rent if the tenant fails to do so.

A U.S. government agency that oversees the country's federal housing programs and regulations, including affordable housing initiatives.

The length of time an investor plans to own a property before selling or disposing of it.

A real estate valuation method that estimates the value of a property based on its income-generating potential, typically through the capitalization of Net Operating Income (NOI).

A document detailing the condition of a rental property before and after a tenant's occupancy, used to assess damages beyond normal wear and tear.

Lease clauses that mandate tenants to obtain renters insurance to cover personal property and liability.

The percentage charged by lenders for the use of borrowed capital, affecting the total cost of a loan.

The discount rate that makes the net present value (NPV) of an investment equal to zero, used to measure the profitability of an investment.

A business arrangement in which two or more investors pool their resources to acquire and manage a real estate property.

A lump sum payment made by a tenant to a landlord in order to secure a lease or rental agreement, often in competitive markets.

A legally binding contract between a landlord and tenant outlining the terms and conditions of the rental arrangement.

A fixed or calculated amount a tenant pays for ending the lease early outlined in the lease agreement.

An agreement that allows tenants to lease a property with the option to purchase it after a specified period.

The duration of a lease agreement - commonly 12 months for apartments, but it could be shorter or longer depending on the agreement.

A type of property ownership where the buyer owns the rights to use and occupy the property for a specified period of time, typically in land lease agreements.

A professional who helps match prospective tenants with available units, guiding them through tours, applications, and lease signings.

Similar to a leasing agent but often involved in a more advisory role - helping renters understand options and assisting landlords in optimizing occupancy.

An institution or individual that provides capital for property purchases or developments, typically in the form of loans.

The tenant who holds the lease of a property.

The landlord or property owner who grants the lease to the tenant.

A ratio used by lenders to determine the risk of a loan by comparing the loan amount to the property's appraised value.

A fund set aside to cover anticipated repairs and maintenance costs for a property, often included in financial projections for multifamily properties.

Duties assigned to either the landlord or tenant regarding the upkeep and repair of the rental property.

The current rental value of a property based on comparable properties in the same market area.

Sections in the lease that explain how changes (addendums) or updates to the agreement must be made and agreed upon.

A rental agreement that continues on a monthly basis until either party provides notice of termination.

A lease agreement where the tenant is responsible for paying not only rent but also some or all of the property's operating expenses (e.g., maintenance, taxes, insurance).

The total income from a property after operating expenses are deducted, excluding debt service and taxes.

Restrictions on the number of individuals allowed to reside in a rental unit.

The percentage of rental units in a property that are occupied by tenants, an important indicator of the property's financial performance.

A digital platform where tenants can apply, pay rent, submit maintenance requests, and manage lease documents.

The ongoing costs of maintaining and running a property, including utilities, property management, maintenance, insurance, and taxes.

A lease provision granting the tenant the right to buy the property at a predetermined price within a specified timeframe.

A lease process that eliminates physical paperwork, using digital tools for e-signatures, applications, and document storage.

Lease terms outlining rules and restrictions regarding pet ownership in the rental property.

The legal right to occupy the property, typically granted on the lease start date.

The operation, control, and maintenance of a real estate property, including tasks such as rent collection, tenant communication, and repairs.

A legally binding contract between a buyer and seller that outlines the terms and conditions of a property sale.

A legal term that ensures tenants can occupy the property without interference or disturbances from the landlord or third parties.

A fee that covers the landlord's cost to find a new tenant after the current tenant breaks the lease.

A company that owns, operates, or finances income-producing real estate and allows investors to buy shares, similar to stock in a corporation.

A clause that allows the tenant to extend the lease for an additional term under specified conditions.

The total rent due, how and when it should be paid, and accepted payment methods - outlined clearly in the lease.

A lease provision detailing the conditions under which rent may be increased during the lease term.

A document listing all tenants of a multifamily property, including rent amounts, lease start and end dates, and occupancy status.

A rental agreement where the tenant owns the home (like a mobile home), but leases the land it sits on.

Rules outlined in the lease that limit how a property can be used - for example, no commercial activities or short-term rentals.

Landlord's legal right to enter the rental property under certain conditions, such as for repairs or inspections, usually with prior notice.

Community or building-specific policies tenants must follow are like quiet hours, trash disposal, or amenity usage.

Funds collected by the landlord at the start of the lease to cover potential damages or unpaid rent, refundable upon lease termination if no issues arise.

A perk offered to tenants for signing a lease is like a discount on the first month's rent or waived application fees.