Landlord Glossary

Appliance depreciation is the decline in value of rental property appliances over time due to normal use and aging. For …

Cap rate is the ratio of a property's net operating income to its current market value, expressed as a percentage. It me…

Capital expenditures are major, one-time expenses that improve or extend the useful life of a rental property. Unlike ro…

Cash-on-cash return measures the annual pre-tax cash flow from a rental property as a percentage of the total cash you i…

The Debt Service Coverage Ratio is the ratio of a property's net operating income to its annual mortgage payment. Lender…

Deferred maintenance refers to necessary repairs and upkeep on a rental property that have been postponed, typically to …

Effective Gross Income (EGI) is the total income a rental property generates after subtracting vacancy and credit losses…

Emergency repairs are urgent, unplanned repairs to a rental property that must be addressed immediately because they thr…

An eviction notice is a formal written document a landlord serves to a tenant to begin the legal process of removing the…

The Fair Housing Act is a federal law that prohibits discrimination in housing based on race, color, national origin, re…

A grace period is a set number of days after the rent due date during which a tenant can pay rent without incurring a la…

The Gross Rent Multiplier (GRM) is a quick metric for evaluating rental property value by dividing the property price by…

The implied warranty of habitability is a legal doctrine that requires landlords to maintain rental properties in a cond…

HVAC maintenance for rental properties involves regular servicing of heating, ventilation, and air conditioning systems …

Landlord-tenant law is the body of federal, state, and local laws that govern the rights and responsibilities of both la…

A late fee is a charge imposed on a tenant who fails to pay rent by the due date. It serves as both a penalty for late p…

A lease agreement is a legally binding contract between a landlord and tenant that outlines the terms and conditions of …

A lease renewal is the process of extending a tenant's lease for an additional term, typically involving updated terms s…

Lease termination is the process of ending a rental agreement, either at the natural expiration of the lease term, throu…

A lease violation occurs when a tenant breaks a term or condition of their lease agreement, such as having unauthorized …

A maintenance request is a formal notification from a tenant to the landlord reporting a repair need or property issue. …

Make ready is the process of preparing a vacant rental unit for a new tenant, including cleaning, painting, repairs, and…

A month-to-month tenancy is a rental arrangement without a fixed end date that automatically renews each month. Either t…

A move-in checklist is a detailed document used to record the condition of a rental unit before a new tenant takes posse…

A move-out checklist is a standardized document used to assess the condition of a rental unit after a tenant vacates, co…

Net Operating Income is the total income from a rental property minus all operating expenses, before mortgage payments a…

Occupancy rate is the percentage of your rental units that are currently occupied by paying tenants. It is the inverse o…

Operating expenses are the recurring costs of running a rental property, including property taxes, insurance, maintenanc…

Preventive maintenance is the practice of regularly scheduled inspections and upkeep on rental property systems and comp…

Pro-rata rent is a partial rent payment calculated for a portion of a month, typically charged when a tenant moves in or…

A property inspection is a systematic examination of a rental unit's condition, typically conducted at move-in, move-out…

Property management is the operation, oversight, and administration of rental properties, including tenant relations, re…

Rent collection is the process of receiving monthly rent payments from tenants, tracking payment status, and following u…

Rent control refers to government regulations that limit how much a landlord can increase rent, typically capping annual…

A rent increase is a raise in the monthly rent amount a tenant pays, typically applied at lease renewal or on a schedule…

Rent payment tracking is the systematic process of recording, monitoring, and verifying rent payments from all tenants a…

A rent roll is a document that lists every rental unit you own along with the tenant name, lease dates, and rent amount …

The rent-to-income ratio is the percentage of a tenant's gross monthly income that goes toward rent. Landlords use it as…

A rental application is a form that prospective tenants fill out providing personal, financial, and rental history infor…

Rental property ROI (Return on Investment) measures the annual return you earn on your rental property relative to the t…

A security deposit is money a tenant pays upfront before moving in, held by the landlord as protection against unpaid re…

Security deposit return laws are state-specific regulations that dictate how quickly a landlord must return a tenant's s…

A self-managing landlord is a property owner who handles all aspects of rental property management personally rather tha…

Subletting occurs when a tenant rents out all or part of their rental unit to another person (the subtenant) while remai…

Tenant communication encompasses all interactions between a landlord and their tenants, including maintenance requests, …

Tenant retention is the practice of keeping existing tenants in your rental properties for as long as possible through g…

Tenant screening is the process of evaluating prospective tenants through background checks, credit reports, income veri…

Tenant turnover cost is the total expense a landlord incurs when a tenant moves out and a new tenant moves in, including…

Unit turnover is the process of preparing a rental unit for a new tenant after the previous tenant moves out, including …

Vacancy rate is the percentage of rental units that are unoccupied at a given time. It directly impacts your rental inco…