Property Management 101
Features, tangible and intangible, that enhance the value or desirability of real estate.
A room or a group of related rooms, among similar sets in one building, designed for use as a dwelling.
One who buys and sells for another for a commission. In real estate, a broker must be properly licensed to perform certain activities specified in the real estate license laws and collect compensation.
Condo / Condominium
The absolute ownership of a unit in a multi-unit building based on a legal description of the airspace the unit actually occupies, plus an undivided interest in the ownership of the common elements, which are owned jointly with the other condominium unit owners.
Conforming or adhering to the acceptable standards or market rate of housing in an area (see Market Rate)
A house having separate apartments for two families, esp. a two-story house having a complete apartment on each floor and two separate entrances.
Equal Housing Opportunity
To create equal housing opportunities for all persons living in America by administering laws that prohibit discrimination in housing on the basis of race, color, religion, sex, national origin, age, disability, and familial status.
The trust account established by a broker under the provisions of the license law for the purpose of holding funds on behalf of the broker’s principal or some other person until the consummation or termination of a transaction
A legal process to oust a person from possession of real estate
Fair Housing Act
The federal law that prohibits discrimination in housing based on race, color, religion, sex, handicap, familial status, and national origin
HUD (Housing and Urban Development)
HUD’s (US Department of Housing and Urban Development) mission is to increase homeownership, support community development and increase access to affordable housing free from discrimination. To fulfill this mission, HUD will embrace high standards of ethics, management, and accountability and forge new partnerships–particularly with faith-based and community organizations–that leverage resources and improve HUD’s ability to be effective on the community level.
Lead-Based Paint Disclosure
Recognizing that families have a right to know about lead-based paint and potential lead hazards in their homes, Congress directed EPA and HUD to work together to develop disclosure requirements for sales and leases of older housing. These requirements became effective in 1996. EPA has established hazard standards for paint, dust, and soil in most pre-1978 housing and child-occupied facilities. These requirements became effective in 2001.
A written or oral contract between a landlord (the lessor) and a tenant (the lessee) that transfers the right to exclusive possession and the use of the landlord’s real property to the lessee for a specified period of time and for a stated consideration (rent). By state law, leases for longer than a certain period of time (generally one year) must be in writing to be enforceable.
A lease under which the tenant has the right to purchase the property either during the lease term or at its end. (See Rent to Own)
A renewal of the lease for a period of time generally under its original conditions unless otherwise stated in the renewal.
The term or duration of the lease that the landlord (lessor) and tenant (lessee) agree that that tenant will occupy, or have possession of the real property.
A real estate agent employed by a licensed real estate broker who leases (rents) property owned by a landlord (lessor) to a tenant (lessee) and has the authority to sign on that lessor’s behalf.
The tenant that has the possession of the real property for the lease term for a specified consideration (rent).
The landlord that has given possession of their real property for the lease term for a specified consideration (rent).
The care or upkeep of a property or unit. This usually does not increase the value but keeps the property in good working order (i.e. grass cutting, minor plumbing, etc.)
These are properties that are leased at the current rates of the market (what the market will bear, or pay for a said property).
Persons with Disabilities Act
The Americans with Disabilities Act gives civil rights protections to individuals with disabilities similar to those provided to individuals on the basis of race, color, sex, national origin, age, and religion. It guarantees equal opportunity for individuals with disabilities in public accommodations, employment, transportation, State and local government services, and telecommunications.
A piece of land or real estate, including any permanent fixtures attached thereto.
Property Management Agreement
An agreement between a landlord (lessor) and a real estate broker (management company) about the details of how a property will be managed, the compensation paid to the broker, and any other criteria deemed to be necessary between the two parties.
Someone who manages real estate for another person for compensation. Duties include collecting rents, maintaining the property, and keeping up all accounting.
Expenses, either prepaid or paid in arrears that are divided or distributed between buyer and seller at the closing or landlord and tenant at the signing of the lease.
Real Estate Agent
An agent with a licensed real estate broker engaged in the sale or lease of real estate.
A registered trademark term reserved for the sole use of active members of the local REALTOR® boards affiliated with the National Association of REALTORS®.
A fixed, periodic payment made by a tenant of a property to the owner for possession and use, usually by prior agreement of the parties.
A statement of proposed rental rates, determined by the owner or the property manager or both, based on a building’s estimated expenses, market supply and demand, and the owner’s long-range goals for the property.
Rent to Own
Typically, this is a lease where you would have the option to buy, and part of your rent may go towards the purchase of the house. (See Lease Option)
The discount provided by the landlord (lessor) or management company to the tenant if the tenant will pay the consideration (rent) by a certain day.
Improvements made on properties that enhance the value or fix something outdated or broken.
Sales Agent / Salesperson
A person who performs real estate activities while employed by or associated with a licensed real estate broker.
A payment by a tenant, held by the landlord during the lease term, and kept (wholly or partially) on default or destruction of the premises by the tenant
SFH (Single Family House)
A detached dwelling on a piece of land (real estate) that typically is for one family’s use.
Subsidy / Subsidized
Monetary assistance granted by a government to a person or group in support of an enterprise regarded as being in the public interest.
Damages done by the tenant or guest of the tenant during the tenants lease term that are outside the normal wear and tear of that unit.
One of a row of houses joined by common sidewalls.