Property Management Glossary

🅰️ A

Accrued Rent Rent that has been earned by the landlord but not yet collected from the tenant.

ACH (Automated Clearing House) An electronic funds transfer system commonly used for collecting rent and disbursing owner payments directly between bank accounts.

Addendum A supplemental document attached to a lease that adds, modifies, or clarifies terms after the original agreement is executed (e.g., pet addendum, lead-based paint disclosure).

Application Fee A non-refundable fee paid by a prospective tenant to cover the cost of background, credit, and rental history screening.

Assignment of Lease The transfer of a tenant’s entire interest in a lease to another party, who then assumes all rights and obligations under the original agreement.

🅱️ B

Background Check A screening process that reviews a prospective tenant’s criminal history, eviction records, employment, and identity verification.

Bad Debt Uncollected rent or charges that have been written off as unrecoverable, typically after a tenant has vacated without paying.

Base Rent The fixed monthly rent amount specified in the lease, before additional charges such as utilities, pet rent, or pass-through expenses.

Broker Trust Account A separate, regulated bank account where security deposits and other client funds must be held by a licensed property manager, kept distinct from operating funds.

🅲 C

Capital Reserve Funds set aside by an owner for major repairs, replacements, or improvements that extend the useful life of a property (roof, HVAC, water heater, etc.).

Cash Flow The net income remaining after all operating expenses, debt service, and reserves have been paid from a property’s gross income.

Certificate of Insurance (COI) A document issued by an insurance company verifying that a vendor, contractor, or tenant carries the required coverage to perform work or occupy a property.

Co-Signer (Guarantor) A third party who agrees to be financially responsible for a tenant’s lease obligations if the primary tenant defaults.

Concession An incentive offered by an owner or manager to attract or retain tenants, such as one month of free rent, reduced deposit, or waived application fees.

🅳 D

Days on Market (DOM) The number of days a rental listing has been actively marketed before being leased.

Default A tenant’s failure to comply with a material term of the lease, most commonly non-payment of rent.

Delinquency The status of a tenant who has not paid rent or other charges by the due date specified in the lease.

Disclosure Information a landlord is legally required to share with a tenant, such as lead-based paint hazards (pre-1978 properties), known mold, or the identity of the property owner or manager.

Draw A scheduled disbursement to the property owner from collected rents, typically issued monthly after expenses are paid.

🅴 E

Emotional Support Animal (ESA) An animal that provides therapeutic benefit to an individual with a disability. Under the Fair Housing Act, ESAs are not considered pets and cannot be subject to pet fees or breed restrictions.

Escrow Funds held by a neutral third party until specific conditions are met, often used for security deposits or repair holdbacks.

Eviction The legal process by which a landlord removes a tenant from a property, typically requiring a formal notice, court filing, and judicial order.

Exclusive Listing Agreement A contract giving a single property manager the sole right to lease and manage a property for a defined period.

🅵 F

Fair Housing Act Federal law prohibiting discrimination in housing based on race, color, national origin, religion, sex, familial status, or disability. State and local laws often add protected classes.

Fiduciary Duty The legal obligation of a property manager to act in the best financial interests of the property owner with loyalty, care, and full disclosure.

Force Majeure A contract clause excusing parties from performance when extraordinary events beyond their control (natural disasters, government action) prevent fulfillment of obligations.

Furnished Rental A rental unit that includes furniture, appliances, and often housewares, typically commanding a higher rent than unfurnished units.

🅶 G

Grace Period A specified number of days after the rent due date during which payment can be made without incurring a late fee.

Gross Rent The total rent collected before any operating expenses or deductions.

Guarantor See Co-Signer. A party who guarantees the financial obligations of a lease.

🅷 H

Habitability The legal standard that a rental property must meet to be considered fit for human occupancy, including working plumbing, heat, electrical, and structural safety.

Holdover Tenant A tenant who remains in the property after the lease has expired, often converting to a month-to-month tenancy or triggering eviction proceedings.

HOA (Homeowners Association) A governing body for a planned community or condominium that establishes and enforces rules, collects dues, and maintains common areas. Tenants in HOA properties must comply with association rules.

HVAC Heating, Ventilation, and Air Conditioning systems, typically the responsibility of the landlord to maintain in residential rentals.

🅸 I

Implied Warranty of Habitability The legal principle, recognized in most states including Nevada, that a landlord implicitly guarantees the rental property is fit to live in, regardless of whether the lease explicitly states it.

Inspection (Move-In / Move-Out) A documented walk-through of the rental property at the beginning and end of a tenancy, used to record the condition and determine any deductions from the security deposit.

Itemized Statement A required document delivered to a vacating tenant detailing any deductions taken from the security deposit, with receipts or estimates supporting each charge.

🅹 J

Joint and Several Liability A lease provision making each tenant individually responsible for the full rent and obligations, allowing the landlord to collect from any one tenant if others default.

Judgment A court order, often resulting from an eviction or collections case, that may include monetary damages, possession of the property, or both.

🅺 K

Key Deposit A refundable deposit held by the landlord to ensure the return of keys, fobs, or remotes at the end of tenancy.

Knock-and-Announce The standard notice procedure a landlord must follow before entering an occupied unit, typically requiring written notice 24 hours in advance except in emergencies.

🅻 L

Late Fee A charge assessed when rent is not paid by the due date or within the grace period, subject to state limits on amount and structure.

Lease A written contract between a landlord and tenant specifying the terms of occupancy, including rent, duration, responsibilities, and conditions for termination.

Lease Renewal An extension of the original lease for an additional term, typically negotiated 30 to 90 days before expiration.

Lessor / Lessee The lessor is the property owner or landlord; the lessee is the tenant.

Lock-Out The illegal practice of changing locks or denying a tenant access to their unit without going through proper eviction proceedings. Also called “self-help eviction.”

🅼 M

Maintenance Request A documented submission from a tenant reporting a needed repair, typically tracked through a property management portal for response time and resolution.

Management Agreement The contract between a property owner and a property management company outlining services, fees, authority, and term.

Market Rent The rental rate a property would command in the current open market based on comparable units, location, and condition.

Move-In Checklist A detailed condition report completed at the start of tenancy, signed by both landlord and tenant, that establishes the baseline for security deposit deductions.

🅽 N

Net Operating Income (NOI) The income generated by a rental property after operating expenses are subtracted from gross income, before debt service and capital expenditures.

Notice to Quit (or Notice to Vacate) A formal written notice given by a landlord requiring a tenant to leave the property, the first procedural step in most eviction cases.

Non-Refundable Fee A charge collected at lease signing or during tenancy that, unlike a deposit, is not returned to the tenant (e.g., cleaning fee, pet fee).

🅾️ O

Occupancy Limit The maximum number of people legally permitted to live in a rental unit, often based on local code and the federal “two per bedroom plus one” guideline.

Operating Expenses The recurring costs of running a rental property, including taxes, insurance, utilities (when paid by owner), maintenance, and management fees.

Owner Statement A periodic accounting report delivered to the property owner detailing rent collected, expenses paid, and net distribution for a given period.

🅿️ P

Pet Deposit / Pet Rent A deposit (refundable) or recurring monthly charge (non-refundable) collected from tenants with pets, intended to offset additional wear and risk.

Property Manager A licensed professional or company that oversees the day-to-day operation of a rental property on behalf of the owner, including leasing, maintenance, accounting, and tenant relations.

Prorated Rent A partial rent payment calculated based on the number of days a tenant occupies the unit during a partial month, typically at move-in or move-out.

🆀 Q

Quiet Enjoyment The legal right of a tenant to use and enjoy their rental unit without unreasonable interference from the landlord, neighbors, or other parties.

Quit Notice A formal demand for a tenant to either correct a lease violation or vacate the premises within a specified timeframe.

🆁 R

Reasonable Accommodation A change in rules, policies, or services required under the Fair Housing Act to give a person with a disability equal opportunity to use and enjoy their housing (e.g., allowing a service animal in a no-pet building).

Rent Roll A current list of all units in a property showing tenant names, lease terms, monthly rent, deposits, and lease expiration dates.

Renter’s Insurance A policy purchased by a tenant covering personal property and liability within the rental unit. Increasingly required as a condition of tenancy.

Reserve Fund A pool of money held by the property manager on behalf of the owner to cover unexpected expenses, repairs, or vacancy gaps.

Resident Retention The strategic effort to keep current tenants through lease renewals, reducing turnover costs and vacancy loss.

🆂 S

Section 8 (Housing Choice Voucher Program) A federal program administered locally that subsidizes rent payments for qualifying low-income tenants. Landlords participating must meet HUD inspection and program requirements.

Security Deposit A refundable sum collected at the start of tenancy to cover unpaid rent, damage beyond normal wear and tear, or other lease violations. Subject to state-specific caps and return timelines (Nevada: capped at three months’ rent, returnable within 30 days of move-out).

Service Animal A dog (or in some cases, miniature horse) individually trained to perform tasks for a person with a disability. Service animals are not pets and must be accommodated under the ADA and Fair Housing Act.

Showing A scheduled or self-guided tour of an available rental unit for a prospective tenant.

Sublease An arrangement where the original tenant rents all or part of the unit to a third party while remaining liable to the landlord under the original lease.

🆃 T

Tenant Screening The process of evaluating a rental applicant through credit checks, criminal background, eviction history, employment verification, and rental references.

Tenant Turnover The full cycle of one tenant vacating and another moving in, including cleaning, repairs, marketing, and lost rent during vacancy.

Trust Account A regulated bank account, separate from operating funds, where a property manager holds tenant deposits and owner funds in compliance with state real estate law.

🆄 U

Unlawful Detainer The formal legal action filed in court to evict a tenant who is unlawfully holding possession of a rental property.

Useful Life The estimated period over which a property component (appliance, roof, carpet) will function before needing replacement, used for depreciation and reserve planning.

Utilities Services such as water, sewer, trash, gas, electricity, and internet. The lease specifies which are paid by the landlord versus the tenant.

🆅 V

Vacancy Rate The percentage of available rental units that are unoccupied at a given time, used as a key indicator of market health and portfolio performance.

Vendor A third-party service provider engaged for property maintenance or repairs, such as plumbers, landscapers, or HVAC technicians.

Violation Notice A formal written notice to a tenant identifying a lease violation and, where applicable, the timeframe to cure it before further action.

🆆 W

Walk-Through A physical inspection of the rental unit, conducted at move-in, move-out, or during periodic property reviews.

Warranty of Habitability The landlord’s ongoing obligation to maintain the property in a condition fit for human occupancy throughout the tenancy.

Wear and Tear (Normal) The expected, gradual deterioration of a rental unit through ordinary use, which cannot be deducted from the security deposit (e.g., minor carpet wear in walkways, faded paint).

🆇 X

X-Dates Critical dates in the lease lifecycle, including commencement, renewal windows, notice deadlines, and expiration, typically tracked in property management software to prevent missed obligations.

🆈 Y

Year-End Statement An annual financial report provided to the property owner summarizing all income, expenses, and distributions, often used for tax preparation along with IRS Form 1099.

Yield The annual return on a rental property investment expressed as a percentage of the property’s value or purchase price.

🆉 Z

Zero-Tolerance Policy A lease or community provision establishing strict, immediate consequences for specific violations such as illegal drug activity, violence, or unauthorized occupants.

Zoning Local government regulations governing how a property may be used, including whether it may be rented, used as a short-term rental, or operated as a multi-family dwelling.