Property Management Dictionary & Rental Terms Glossary

Accelerated depreciation allows real estate investors to deduct a larger portion of an asset’s value in the earlier years of ownership.

Affordable housing is designed to ensure that low to middle-income families can access safe, adequate housing.

ARV is used by real estate investors when evaluating potential fixer-upper properties.

In real estate, amenities generally refer to something that provides comfort, convenience for tenants.

An apartment is a self-contained residential housing unit that is a part of a larger building.

Appraised Value refers to the estimated worth of a property as determined by a professional real estate appraiser.

A background check is part of the tenant screening process, helping landlords identify trustworthy and reliable tenants.

A balance sheet is a financial statement that provides a snapshot of an entity’s financial position at a specific point in time.

Bank feeds automate transaction tracking, saving landlords time, improving accounting accuracy, and simplifying tax prep.

Bonus depreciation allows taxpayers to immediately deduct a substantial portion of the cost of qualifying assets in the first year of ownership.

Build to Rent refers to residential properties that are built by developers specifically for long-term rental rather than for sale.

Capital improvements increase a property's value, extends its useful life, or adapt it for a different use. 

Capitalization Rate is a real estate metric investors use to get a quick and simple estimate of the potential return on a property.

Cash flow in real estate is a metric that reflects the financial health of a property or business.

Cash on Cash Return (CoC) is a metric real estate investors use to evaluate the performance of their investment.

The cost basis of a property represents the original value of an asset for tax purposes.

Cost segregation allows for accelerated depreciation, which results in higher deductions during the first years of owning the property.

A tenant credit check reviews credit history, score, and payment behavior to help landlords assess financial reliability and reduce rental risks.

Debt Service Coverage Ratio (DSCR) is used by lenders to assess a borrower's ability to repay a loan.

Depreciation in real estate allows investors to deduct the value of an asset over its 'useful life'.

Depreciation recapture is a tax provision that allows the IRS to recoup a portion of a property's depreciated value when it is sold.

A duplex is a residential building that contains two units in a single structure.

Gross Operating Income is a real estate metric that offers investors a realistic estimate of a property's income potential after accounting for vacancies and credit losses.

Gross Rent Multiplier (GRM) is a simple metric used by real estate investors to estimate the value of an income-producing property.

Gross Yield is used in real estate to assess the potential profitability of a property.

Homeowners Associations (HOAs) play a significant role in managing and maintaining residential communities.

Internal Rate of Return (IRR) is a metric for real estate investors that provides a nuanced understanding of an investment's potential profitability over time.

The Loan-to-Value (LTV) ratio is a real estate metric that helps lenders and borrowers evaluate the level of risk associated with a loan.

The Modified Accelerated Cost Recovery System (MACRS) helps businesses and real estate investors maximize tax benefits through accelerated depreciation.

Net cash flow provides landlords and investors insights into the financial viability of rental properties.

Net Operating Income (NOI) is a real estate metric that helps investors and property managers evaluate the profitability and financial health of a property.

Occupancy Rates measure the percentage of units that are occupied compared to those that are vacant.

The Operating Expense Ratio (OER) is a financial metric used in real estate to assess the efficiency and profitability of a property.

A rental agreement is a contract between a landlord and a tenant that outlines the terms, such as rent amount and duration, of renting a property.

A rental application helps landlords evaluate potential tenants by collecting personal, rental, and income info, while ensuring compliance with legal requirements.

ROI helps real estate investors measure how effectively their investments generate profit.

Schedule C is for self-employed individuals, including those in real estate, to report income and claim deductions

Schedule E is a tax form for anyone earning income from rental properties, royalties, or pass-through entities.

Tenant screening helps landlords make informed rental decisions and reduce risk by assessing a tenant's credit, rental history, and background.

Vacancy rates measure the proportion of unoccupied rental units in a portfolio.