Rental Definitions and Glossary of Rental Terms
The A to Z list of real estate terms for landlords and property managers
A
A notice of abandonment is a document that is used to notify a tenant that their tenancy has been terminated.
Affordable housing is a type of housing that is affordable to low-income families and includes both owned and rental housing.
A bank-to-bank electronic payment through the Automated Clearing House network — the lowest-cost way to collect rent.
B
A review of criminal, eviction, and public records as part of screening. Use must comply with FCRA and fair housing rules.
A tenant vacating before the lease term ends. Landlord remedies and the tenant’s liability for remaining rent vary heavily by state.
C
A capital improvement is any permanent alteration or improvement that is made to a property with the intent to raise its value.
A document that confirms the property you are purchasing does not have structural issues and is fit for human occupancy.
NOI divided by property value — the standard yardstick for comparing income property returns.
Annual pre-tax cash flow divided by total cash invested — return measured against actual money in, not property value.
Pulling an applicant’s credit report to assess payment history and debt load. A soft pull does not affect the applicant’s score; a hard pull does.
D
The money that is required to cover the payment of interest and principal on a loan or other debt for a real estate property for a particular time period.
The annual non-cash deduction recovering a rental building’s cost over 27.5 years, reducing taxable rental income.
H
The landlord’s duty to keep the unit safe and livable — working heat, water, electrical, and structural integrity.
Q
The tenant’s implied right to use the property without unreasonable interference from the landlord or other tenants.
Lease-defined hours during which tenants must keep noise down — the practical enforcement tool behind quiet enjoyment.
I
Prohibited conduct such as lockouts, utility shutoffs, unannounced entry, and retaliation against a tenant asserting legal rights.
N
Gross rental income minus operating expenses, before mortgage payments and income tax.
Deterioration from ordinary use (faded paint, worn carpet) that cannot be deducted from a security deposit.
The statutory notice giving a delinquent tenant a set number of days to pay or vacate before an eviction suit can be filed.
Written notice from either party that the tenancy will end on a stated date — most commonly a 30-day notice.
E
An assistance animal that is not a pet under fair housing law — pet fees and most breed or weight limits cannot be applied.
A tenant-signed statement confirming lease terms, rent, and deposit — standard due diligence when a property is sold or financed.
G
The window after the due date during which rent can be paid without a late fee. Set by lease or statute, commonly 3–5 days.
Property price divided by gross annual rent — a fast screening ratio, less precise than cap rate.
A third party who accepts legal liability for the rent if the tenant defaults. Common with students and thin credit files.
P
Accepting less than full rent. In many states this can reset or void a pending eviction notice — handle with care.
Evaluating an applicant’s animal (breed, size, history, vaccination) and distinguishing pets from legally protected assistance animals.
Documentation (pay stubs, tax returns, bank statements) verifying an applicant can afford the rent. A common target is rent ≤ 30% of gross income.
A partial month’s rent calculated for the actual days occupied, typically at move-in or move-out.
M
A tenant’s documented report of a repair need. A written policy in the lease sets response times and defines emergencies.
What comparable units in the same area currently command — the benchmark for pricing and for spotting below-market units.
A tenancy that renews automatically each month and can be ended by either party with proper written notice (commonly 30 days).
A documented, photographed record of the unit’s condition before occupancy — the baseline for any deposit deduction later.
The walkthrough at lease end comparing condition against the move-in record to determine chargeable damage.
F
Federal law barring discrimination in housing based on race, color, religion, sex, national origin, familial status, or disability.
A lease that runs for a set period and binds both parties until it expires; neither side can terminate early without cause or penalty.
R
A discount or incentive (free month, reduced deposit) used to fill a unit without lowering the headline rent.
Local regulation capping how much and how often rent may be raised, often paired with just-cause eviction rules.
Written notice of a rent change, delivered with the lead time required by state law and only at a lawful point in the tenancy.
A running per-tenant record of charges, payments, and balances. Essential evidence in a nonpayment eviction.
Monthly rent divided by the applicant’s gross monthly income — the standard affordability screen (often a 3x income rule).
Often used for a shorter, self-renewing tenancy (typically month-to-month) rather than a fixed term. The distinction matters for notice periods and rent increases.
The form a prospective tenant completes providing identity, employment, income, and rental history for screening.
A periodic walkthrough to verify condition and catch deferred maintenance. Requires advance notice in most states.
A tenant-held policy covering their belongings and personal liability. Landlords commonly require proof of coverage in the lease.
A side agreement among co-tenants covering rent splits, chores, and guests. It does not override the lease with the landlord.
L
The state and local statutes governing deposits, notice, entry, habitability, and eviction. Rules differ materially by jurisdiction.
A document attached to a lease that adds or clarifies terms (pets, smoking, parking) without rewriting the original agreement.
A legally binding contract between landlord and tenant setting out rent, term, deposits, and rules of occupancy. Usually fixed-term (e.g., 12 months).
Extending a lease past its original term, or notifying the tenant that it will not be extended. Non-renewal is not an eviction.
Ending a lease before or at its natural end, usually via a written termination letter that documents the date and condition of return.
S
Section 8 Housing is a government program that allows low-income families to afford housing in the private market.
Security deposits are refundable expenses used to protect landlords from financial loss from unpaid rent or property damage.
A HUD program paying a portion of rent directly to participating landlords on behalf of qualifying low-income tenants.
An occupant with no legal right to the property. Removal typically requires a formal court process, not a lockout.
A tenant renting the unit to a third party while remaining liable under the original lease. Usually requires landlord consent.
T
Tenant Improvements are modifications to a commercial space that are made specifically for a tenant. They’re not the same as Fitting Out.
Tenant screening is the process of screening potential tenants to determine if they are a good fit for your property.
The cycle of a tenant leaving and a new one moving in — vacancy days, make-ready cost, and re-leasing expense.
U
Excess liability coverage sitting above landlord policy limits — protects owner assets against large claims.
W
A warranty deed is a legal document that transfers ownership of real property and protects buyers and sellers from title defects
Any formal, documented communication required by the lease or statute. Delivery method and timing determine whether it is legally valid.