Ultimate A-Z Rental Real Estate Dictionary (175+)

Rental Real Estate Terminology

The world of rental real estate is a vast industry with many different technical terms, unofficial slang and acronyms. Our glossary of rental real estate terminology contains a comprehensive list of the essential terms every rental real estate investor needs to know.


1031 ExchangeA 1031 exchange, named after Section 1031 of the U.S. tax code, is a strategy used in real estate investing to defer paying capital gains taxes on an investment property when it’s sold. To qualify, the investor must reinvest the proceeds from the sale into another “like-kind” property, essentially swapping one investment property for another. This method allows an investor to defer capital gains tax, which can lead to more funds being available for reinvestment.


Accredited Investor – An accredited investor is a person eligible to invest in unregistered securities (which are off-limits to retail investors) as defined by the SEC as those that have a net worth over $1 million, excluding primary residence (individually or with spouse or partner) and/or income over $200,000 (individually) or $300,000 (with spouse or partner) in each of the prior two years, and reasonably expects the same for the current year.

Accounts Payable StatementAn accounts payable statement is a financial document that lists all the outstanding bills, or liabilities, that a property (owner or manager) owes to vendors and contractors or service providers at a specific point in time. These may include expenses for property maintenance, utilities, property management services, or mortgage payments, providing a clear overview of the property’s short-term financial obligations.

Accounts Receivable StatementAn accounts receivable statement is a statement that outlines all the money that is owed to the property (ownership or property management), typically in the form of rent or other fees, at a specific point in time. This statement includes details such as tenant names, the amount they owe, and when their payments are due, providing a clear overview of the property’s incoming cash flow.

Adjustable Rate – See “Variable Interest Rate

After Repair Value (ARV) – After Repair Value (ARV) is an estimate of what a property will be worth on the market after necessary repairs and renovations have been completed.

Amortization – Amortization refers to the process of gradually reducing a loan balance over a fixed period of time through regular payments that cover both principal and interest.

Air Rights – Air rights in real estate refer to the legal right to control and use the space above a property, typically up to a certain height limit.

Americans With Disabilities Act (ADA) – The Americans with Disabilities Act (ADA) is a U.S. law that requires public and commercial buildings to meet certain accessibility standards to accommodate individuals with disabilities, including requirements for parking spaces, restroom facilities, door widths, ramp slopes, and more.

Anchor Tenant – An Anchor Tenant is a larger retail tenant which usually draws in a substantial majority of customers into the overall retail property.

Apartment – A multi-unit building, often 2 stories or more, that has only residential suites.

Appraisal – An appraisal is a fair market valuation of a particular property’s value based on a series of quantitative factors such as comparable sales and current property condition.


Balance Sheet  – A balance sheet, when used in real estate, is a financial statement that shows the property’s assets, such as its current market value and any income it generates, against its liabilities, which could include a mortgage or other debts.

Balloon Payment – A balloon payment in real estate refers to a larger than usual lump sum payment that is due at the end of a loan term, typically after several years of smaller payments.

Basis Points (BPs) – Values equal to one-hundredth of one percentage point. For example, 100 basis points = 1 percentage point.

BRRRRBRRRR is an acronym for Buy, Rehab, Rent, Refinance, and Repeat, which is a real estate investment strategy that involves buying a distressed property, rehabbing it, renting it out, cash-out refinancing newly appreciated equity, and repeating the process to acquire more rental properties.

Building Materials –  Building Materials, also called Construction Materials, are the individual natural occurring or man made materials that are collectively used to construct a building.

Building ProductsBuilding products are the processed and ready made finished items that are used in a modular fashion throughout the construction building process.

Buy and Hold – Buy and hold refers to a long-term real estate investment strategy where an investor purchases a property, rents it out, and continues to hold it for an extended period of time (usually 3-5 years), with the goal of generating rental income and realizing long-term property value appreciation .


Cap Rate (Capitalization Rate) Cap Rate (Capitalization Rate) is the ratio of Net Operating Income (NOI) to Property Value and also a valuation metric used to estimate the expected rate of return when comparing multiple investment real estate properties.

Cash Offer Buyer – Cash Offer Buyers are individuals or companies that provide immediate cash offers for properties, often in “as-is” condition. These buyers typically target sellers who need a fast, hassle-free sale, bypassing traditional real estate processes. Though convenient, the cash offers can be below market value, as the buyers aim to resell the property for profit or invest in its improvement.

Central Business District – Central Business District (Commonly called CBD) refers to the commercial and business center of a city.

Clear Height – Clear height is an industry term in industrial real estate that refers to the usable height to which a tenant can store its product on racking.

Closing Costs – Closing costs in real estate are the various fees and expenses related to finalizing a property transaction, typically paid at the time of closing when the title of the property is transferred from the seller to the buyer. These costs may include loan origination fees, title insurance, escrow fees, attorney fees, pre-paid property taxes and insurance, recording fees, and more. The total closing costs can vary but typically range a single digit percentage of the purchase price of the property.

Commencement Date – Commencement date refers to the day on which a tenant’s rights and obligations under the lease agreement begin, often coinciding with the start of their occupancy and rent payments. This is typically, but not always, the day on which the tenant takes possession of the leased space, which usually occurs upon substantial completion of the tenant improvements.

Commercial Lease Addendum – A commercial lease addendum is a supplemental document attached to a primary commercial lease agreement, outlining additional terms, clarifications, or modifications specific to a business-related context. Once executed, the addendum becomes an integral part of the lease, holding the same legal weight as the original document.

Commercial Lease Agreement – A commercial lease agreement is a legally binding contract between a landlord and a business entity detailing the terms under which the latter rents commercial space for its operations. The contract typically addresses terms like rent amount, duration, property use restrictions, and responsibilities for maintenance and repairs.

Commercial Property Maintenance – Commercial property maintenance refers to the ongoing care and repair tasks required to preserve the functionality and appearance of commercial properties. This includes routine services such as cleaning, landscaping, and HVAC maintenance, as well as emergency repairs and upgrades to ensure the property remains safe, operational, and attractive to tenants and visitors.

Commercial Property Management – Commercial property management operates non-residential properties such as retail spaces,  offices buildings, and industrial warehouses. Like residential property management, commercial property management encompasses the tasks and responsibilities of operating an income-producing property.

Commercial Property Management Software – Commercial property management software based application that facilitates the efficient management of commercial specific rental properties by using one unified platform to simplify common property management processes.

Commercial Real Estate – Commercial real estate (CRE) is property (i.e. buildings and land) that is used solely for profit-generating business activities and often leased to commercial tenants for solely business purposes.

Commercial Real Estate Brokerage – A commercial real estate brokerage is a professional firm that specializes in buying, selling, and leasing commercial properties, such as offices, retail spaces, warehouses, and multifamily units. They provide expert guidance and services to clients, leveraging market knowledge and negotiation skills to facilitate transactions and maximize the value of real estate investments for buyers, sellers, and tenants.

Commercial Real Estate Loans – Commercial Real Estate Loans, also known as “CRE loans”, are mortgages secured by a lien on a commercial property. Commercial real estate assets include income-producing office buildings, retail space, warehouses, and other types of properties used for business purposes.

Commercial Tenant Screening – Commercial tenant screening is a systematic review process conducted by landlords or property managers to assess the suitability of a business entity for leasing commercial property. This evaluation typically includes examining the business’s financial stability, creditworthiness, and history of property care, aiming to ensure that prospective tenants can meet lease obligations and maintain the property effectively​.

Conforming Loan – See “Conventional Loan

Construction Materials – See “Building Materials

Construction Software – Construction software (also called construction management software) is any application, tool, or suite that assists with various phases of a construction project such as estimating job work, managing materials, labor management, cost control and risk assessment.

Contech – Construction technology is a term coined to identify the intersection of construction and technology that is used to innovate the planning, designing, and manufacturing in building.

Conventional LoanA conventional loan (also called a conforming loan) for a rental property is a mortgage that is not insured or guaranteed by a government agency, such as the FHA or VA.

Cost Segregation – Cost segregation is a tax planning strategy used by real estate investors that accelerates the depreciation deductions a taxpayer can claim for certain property assets. It involves identifying and separating personal property assets, which can be depreciated over a shorter time frame, from real property assets that are depreciated over a longer period. This results in higher depreciation expense in the early years of property ownership, reducing taxable income, and thus lowering the tax liability.

Corporate Guarantee – A corporate guarantee is a specific type of guarantee where a corporation agrees to be held legally responsible for completing the duties and obligations of a commercial tenant, in the event that the tenant fails to fulfill the terms of the lease contract.

CoworkingCoworking is a business model that involves individuals or businesses sharing a collaborative workspace or office space, typically offering amenities such as desks, meeting rooms, internet, and other office related services.

Credit Tenant – A credit tenant refers to a commercial tenant with a strong credit rating and a solid financial standing, indicating a high likelihood of fulfilling lease obligations reliably.

CrowdfundingReal estate crowdfunding is a method of raising capital for real estate investments through an online platform, typically by pooling small amounts of money from a large number of investors.


Data Center – Data centers are a type of specialized industrial property that house the technological hardware and related equipment used to store, process, distribute, and provide access to large amounts of data.

Debt – Debt is any type of loan or borrowed capital used to fund a real estate investment and is secured by a specified real estate property as collateral. In rental real estate, debt typically takes the form of a mortgage or deed of trust.

Debt Service Coverage Ratio (DSCR) – Debt service coverage ratio is a metric that compares a rental property’s net operating income (NOI) and its annual debt service cost. DSCR = NOI / Annual Debt Service.

Deductions – Deductions refer to certain expenses related to owning, operating, and managing a rental property that can be subtracted from taxable income for tax purposes. Common examples include mortgage interest, property tax, operating expenses, depreciation, and repairs. These deductions can decrease the amount of income tax a property owner pays, effectively reducing the cost of owning and operating the rental property.

Development – See “Ground Up Development

Debt-to-Income (DTI) –  Debt-to-income is a ratio that is calculated by dividing a borrower’s total monthly debt payments (e.g. mortgage, car loans, credit card payments, etc.) by their gross monthly income. The result, expressed as a percentage, helps lenders assess a borrower’s financial stability to manage monthly payments. A lower DTI ratio is typically preferred as it indicates greater income to cover debt service.

Due Diligence – The comprehensive investigation and analysis of a property, including its legal, financial, and physical aspects, to identify potential risks and ensure a well-informed decision beforehand.

Duplex – A two-unit residential rental property.


Entitlement – The legal process of obtaining necessary approvals and permissions from government authorities to develop a property for a specific use or project.

Equity – Equity, in the context of real estate, is the value of a property minus any debt owed on the property. Equity can be calculated by taking a property’s current fair market value, and subtracting any debts against the property such as mortgages, second loans, or other obligations.

Escrow – Escrow is the process of holding money in the custody of a neutral third party of a transaction, in which funds can only transfer out when a specified condition has been fulfilled. Escrow is usually used in the sale process of a rental property.

Estoppel Certificate An estoppel certificate is a document used in real estate transactions where a tenant verifies the current status and terms of their lease agreement. It legally binds the tenant to these statements, preventing them from later asserting any contradictory facts regarding the lease terms.


Federal Housing Administration (FHA) Loan – A Federal Housing Administration (FHA) Loan is a mortgage insured by the FHA, designed to lower barriers to homeownership for those with less-than-perfect credit or limited savings. These loans, offered by FHA-approved lenders, typically require lower down payments and have more lenient credit requirements compared to conventional mortgages.

FHA Loan – An FHA loan is a type of government-backed mortgage insured by the Federal Housing Administration (FHA), designed to help borrowers with lower credit scores and smaller down payments secure financing for a home purchase.

Fix and Flip – “Fix and flip” is a real estate investing strategy where an investor buys a distressed property at a discounted price, and then renovates and upgrades the property to improve its value, with the goal of selling it (‘flipping’) at a higher price for a profit.

Floating Rate – See “Variable Interest Rate

Fractional Ownership – Real estate fractional ownership is a method of purchasing a share of a property, typically through a legal entity, where each investor owns a portion of the property and shares in the rental income and potential appreciation of the property.

Fourplex – See “Quadruplex”.


General LedgerA general ledger is a comprehensive record that catalogs all the financial transactions associated with the property over its entire lifecycle. This includes revenues such as rental income, expenses like property taxes or repairs, and any changes in liabilities and equity, thus providing a detailed historical context for understanding the financial performance of the property.

Ground Up Development – Rental real estate development (also called ground up development) refers to the process of planning, financing, and constructing properties specifically designed for leasing to tenants. It involves a series of steps including market research, acquisition of land, design and construction of housing units, and adherence to legal and regulatory standards.


Hard Money Loan – A hard money loan is a type of asset-based real estate loan that is typically short-term, high-risk, high-yield, and is collateralized by a piece of real property.

High-Rise Apartments – A professionally managed residential building exceeding 10-12 stories and containing 100+ units.

Holdover – Holdover describes a situation where a commercial tenant continues to occupy the leased property beyond the rental term’s expiration, engages in illegal activities on the premises, or breaches any lease terms except non-payment of rent. In some states, holdover petitions are employed to legally remove such tenants.

Home Equity Line of Credit (HELOC) – Home equity line of credit (HELOC) is a rotating line of credit that you can draw against, secured with a lien against real property (either your home or an investment property). A HELOC works like a revolving credit line, similar to a credit card, wherein the borrower can draw funds up to a predetermined credit limit as needed and repay the balance over time.

Hospitality (Properties) –  Hospitality properties are those that primarily serve travelers such as hotels, motels, lodges, cabins, hostels, and any other type of property for overnight stays.

Hospitality Property Management – Hospitality property management is a specialized type of real estate management that deals with the comprehensive oversight of operations for hospitality-related properties such as hotels, resorts, and restaurants.

House Hacking House Hacking is a rental real estate investing strategy that involves renting part of a property out to generate income to generate additional rental income and/or reduce living expenses at the same time.


iBuying – iBuying (short for “instant buyers”) is a real estate transaction method where online companies use data-driven algorithms to provide near-instant cash offers for homes based on fair market value estimates. The process aims to streamline the buying and selling experience, offering homeowners a quick and convenient way to sell their properties.

Income Statement An income statement, also called a Profit and Loss Statement (P&L) summarizes the revenues (like rental income), and the expenses (like property taxes, maintenance, and insurance) incurred over a specific period of time. The difference between the total revenue and total expenses represents the net income or loss, providing insight into the rental property’s profitability.

IndustrialOften large buildings used for warehousing, manufacturing, and any other type of industrial economic use.

Interest Rate – Interest rate refers to the amount a lender charges a borrower for the use of money, expressed as a percentage of the principal loan amount.




Land – Plots of land ranging in sizes from small to very large and also type depending on location such as agricultural outside of metropolitan cities, and infill land within urban cities.

Land Lease Agreement – A land lease agreement is a binding contract between a landowner (lessor) and a tenant (lessee) that permits the tenant to use a specific piece of land for a predetermined period in exchange for compensation. The agreement stipulates terms such as lease duration, payment structure, and permitted land uses and pertains exclusively to the land, excluding any structures unless otherwise specified.

Land Property Management – Land property management is a specialized type of real estate management that deals with the comprehensive oversight of day-to-day and long term management of land properties.

Late Fee – A late fee is an additional charge imposed by a landlord on a tenant for failing to pay rent by the due date specified in the lease agreement. It serves as a financial penalty to encourage on-time payments and its amount and terms are usually detailed in the rental contract. Try out our Late Rent Fee Calculator.

Lease – A lease is a legal agreement between a lessee (i.e. renter) and lessor (i.e. landlord or property owner) to use an asset or property for a period of time in return for lease or rental payments.

Lease Agreement Addendum – A lease agreement addendum for rental properties is a supplemental document attached to a primary lease agreement, stipulating additional terms, conditions, or provisions. It serves to modify, clarify, or append specific elements without needing to alter the original contract directly. Both parties must typically sign this addendum, making its contents as legally binding as the main lease.

Lease Agreement Amendment – A lease agreement amendment for rental properties is a formal modification to a previously executed lease agreement, adjusting or altering specific terms or conditions. This document does not replace the original agreement but rather updates or revises particular clauses or provisions. Both parties must agree to and sign the amendment, ensuring the changes are mutually understood and legally binding.

Lease to Own Agreement – A lease to own agreement for rental properties is a contractual arrangement where a tenant rents a property with an option to purchase it at the end or during the lease term. The agreement specifies terms such as purchase price, rent, duration, and the portion of rent that may be credited towards the purchase. This combines elements of both rental and purchase agreements, providing a pathway from tenancy to homeownership.

Leasing Fees – See “Property Management Fees

Loan-to-Value (LTV) – In real estate financing, the Loan-to-Value (LTV) ratio is a financial metric that expresses the amount of a mortgage lien as a percentage of the total appraised value of the property, essentially reflecting the degree to which the property is leveraged. An example is a lender who goes up to 75% LTV will lend $75,000 against a $100,000 property.

Long Term Vacation Rental – A long-term vacation rental is the leasing out of a furnished living space for a period of time that is generally one month or longer. 


Maintenance – Rental property maintenance is the act performing repairs, safety checks, and general upkeep throughout a rental property.

Manufactured Housing Management Software – Manufactured housing management software (also known as mobile home management software) is a digital platform that facilitates the comprehensive administration of mobile home parks and manufactured home communities through features like inventory management, lease tracking, financial transactions, and maintenance scheduling.

Marketing Strategies (Real Estate) – Rental property marketing strategies are a set of methods and tactics used by property owners and managers to promote their properties, attract potential buyers or tenants, and maximize rental income or returns. These strategies typically encompass a mix of traditional and digital approaches, such as print advertisements, online listings, social media promotion, and virtual tours, designed to showcase the property’s features, reach the target audience, and reduce vacancy rates.

Mid-Rise Apartments – A residential building approximately 5-12 stories tall, containing 30-100 units, and elevator service.

Mixed Use – Buildings where the property may have a combination of uses, such as retail, office and apartments.

Month-to-Month Lease Agreement – A month-to-month lease agreement is a rental contract between a landlord and a tenant that does not have a specified end date and renews automatically each month. Either party can typically terminate the agreement with a predetermined notice, often 30 days.

Multifamily – A multifamily property is any residential property that contains more than one housing unit. While they serve for residential dwelling, the general purpose for the property type is for investment (owner-occupied or not).

Multifamily Loan A multifamily loan is any type of loan used by real estate investors to purchase or refinance residential multifamily properties including smaller multi-unit properties (2-4 units) and large apartment complexes (5+ units).

Multifamily Property Management – Multifamily property management is a specialized type of real estate management that deals with the administrative, financial, and operational tasks involved in managing residential properties that consist of multiple units within one complex or building. This can include rent collection, tenant relations, property maintenance, financial reporting, legal compliance, and other aspects that ensure smooth and profitable operation of the rental property.


Net Operating Income (NOI) – NOI is a real estate valuation calculation metric that measures the operating profitability of a specific income generating investment property by comparing the total income to the total expenses. The calculation for NOI is: NOI = (Gross Operating Income + Other Income) – Operating Expenses.

New Construction – See “Ground Up Development

NNN – See “Triple Net NNN

Non-Accredited Investor – A non-accredited investor is any investor that does not meet the financial requirements of an Accredited Investor as defined by the SEC. See “Accredited Investor” for more information.


Offering Memorandum (OM) –  An Offering Memorandum, often called an “OM”, is a comprehensive document that provides detailed information about a property being sold, including its features, financials, and legal aspects, to aid potential investors in making an informed decision about purchasing the property.

Office Buildings where administrative work usually takes place. These often include spaces for Medical Centers and Professional Services (Lawyers/Accountants).

Opportunity Zone – An opportunity zone is a federally designated, economically-distressed area where private investments, under certain conditions, may be eligible for significant tax benefits. The key tax benefits include deferral of tax on prior capital gains, step-up in basis for capital gains reinvested in an opportunity zone, and potential exclusion from tax on profits from the sale of an investment in a Qualified Opportunity Fund if the investment is held for at least 10 years.

Owner Financing – See “Seller Financing”.

Owner Occupied – Owner occupied refers to a property in which the property owner occupies (for dwelling or business purpose) the whole or partial property, while the remaining units or space can be rented out to tenants.


Parking Lease Agreement – A parking lease agreement is a contractual document between a space owner (lessor) and a renter (lessee) that stipulates the terms under which a parking space or area is rented. This agreement details specific conditions such as duration of the lease, payment terms, and any rules or guidelines pertaining to the usage of the parking space.

Parking Lot A parking property (also called a parking lot, car lot, or car park) is a piece of land that is primarily used for short to medium term parking of motor vehicles (cars, trucks, etc.). This can include both public and private parking lots.

Parking Property ManagementParking property management is a specialized type of real estate management that deals with the comprehensive oversight of parking-related properties such as surface lots and parking garages.

Personal Guarantee – A Personal Guarantee is a guarantee in which an individual agrees to be responsible for the financial obligations of a debtor or borrower to a lender, in the event that the debtor or borrower fails to pay an amount owing under the loan agreement.

Pet Screening – Pet screening is the process landlords and property managers use to assess the suitability of allowing a tenant’s pet in a rental property. This evaluation typically includes checking the pet’s breed, size, behavior history, and health records to ensure compatibility with property rules and to mitigate potential damage or liability issues.

PITIA – PITIA is an acronym in real estate finance, stands for Principal, Interest, Taxes, Insurance, and Association dues, which collectively represent the total monthly cost a property owner may expect to pay when owning a property.

Prefab Housing – Prefabricated housing (also called “prefab” or “prefabs”) is any dwelling structure that has sections of the structure  manufactured in an off-site factory, and then subsequently transported to its intended site of use.

Private Notes Real estate private notes are legal contracts between a borrower and a lender that outline the terms of a loan used to purchase real estate. The lender holds the note and receives regular payments from the borrower, which includes principal and interest, until the loan is paid off in full.

Private Placement Memorandum (PPM) – A PPM (Private Placement Memorandum) is a legal document provided to potential investors that outlines the details and risks of the investment opportunity. The PPM contains information about the investment structure, financial projections, terms and conditions, and legal disclosures, providing investors with the necessary information to make informed investment decisions.

Profit and Loss Statement (P&L) – See “Income Statement

Promissory Note – In real estate, a promissory note is a legally binding document in which a borrower agrees to repay a certain amount of money to a lender by a specified date, often including details about the repayment schedule, interest rate, and consequences of default. Often used in transactions like mortgages or seller financing, this note represents the borrower’s promise to pay back the loan for the property purchased.

Property Inspection Software – Property inspection software is a specialized digital application designed to facilitate the scheduling, conducting, and reporting of property inspections, incorporating features for data collection, photo documentation, and automated report generation.

Property Maintenance Software Property maintenance software is any digital platform that is used to automate work orders, track asset information, and develop cost-optimized maintenance budgets.

Property Management – Property management (also known as rental management) – is the daily oversight of rental real estate by a third-party contractor.

Property Management Fees – Property management fees (also called leasing fees) are fees that property owners pay property management companies to ensure that their property is properly operated and maintained. They are usually paid on a monthly basis and can range from ongoing management fees, to one-time service specific fees.

Property Management Software – Property management software is any digital solution designed to assist with the efficient management of rental properties by using one unified platform to simplify property management processes such as tenant communication, rent collection, maintenance scheduling, finance tracking, storing of leasing documents and contracts, and centralization and digitization of property information.

Property Management Software ROIProperty Management Software ROI is a financial metric that quantifies the return on investment from using property management software, calculated by comparing the software’s cost savings and revenue generation against its total cost. It serves as a critical indicator for assessing the financial effectiveness and value addition of the software to property management operations.

Property Sale Commission – A property sale commission is a fee paid to licensed real estate professionals for their services in assisting with the successful sale of a property. Both representatives of the buyer and seller receive a commission, which is calculated as a percentage of the final sale price of the property.

Proptech – Property technology, commonly called proptech or real estate tech, is the software, tools, platforms, apps and other digital solutions used by real estate practitioners.

Property Manager (PM) – A Property Manager (PM) is a person whose job is to manage the daily routines of rental properties and preserve the value of the properties while generating income. Generally, property managers oversee management activities such as rent payments, repairs and maintenance, security, and general property upkeep.


QSR (Quick Service Restaurant) – A QSR is a type of tenant that occupies a retail property with a “Quick Service” restaurant use that is generally a fast-food franchise such as McDonalds, Subway, or similar. QSR properties are usually freestanding but can also be in-line or end-cap.

Quadruplex – A four-unit residential rental property.


Real Estate ETF – Real Estate Exchange-Traded Funds (ETFs) are a type of exchange-traded fund that specializes in investing in the securities of companies involved in real estate, which may include Real Estate Investment Trusts (REITs), real estate development companies, and homebuilding companies. These ETFs offer investors exposure to the real estate sector through a diversified portfolio of real estate companies, allowing for investment in real estate markets without the need to directly buy or manage property.

Real Estate Investment Management Software – Real estate investment management software is a digital tool designed to assist investors and property managers in overseeing, analyzing, and optimizing the financial and operational performance of real estate assets.

Real Estate ProfessionalA real estate professional is an individual who meets specific criteria outlined by the United States Internal Revenue Services (IRS) to be classified as such for tax purposes. To be considered a real estate professional, the individual must materially participate in rental property activities, meaning they are actively involved in the management and operations of properties on a regular, continuous, and substantial basis. By meeting these qualifications, real estate professionals may potentially offset rental property losses against their other income, providing valuable tax benefits.

Real Estate Software ROI – Real Estate Software ROI (Return on Investment) quantifies the financial return generated from the use of specific real estate software in comparison to the cost invested in deploying such software. It measures the efficiency and profitability of the investment, helping businesses and investors evaluate the value added by the software to their real estate operations and decision-making processes.

Real Estate Stocks – Real estate stocks refer to equity investments in companies involved in the real estate sector, encompassing a broad range of types such as Real Estate Investment Trusts (REITs), Real Estate Exchange-Traded Funds (ETFs), and stocks of companies operating within the real estate industry. These instruments provide investors with exposure to the real estate market through publicly traded securities, offering a way to invest in real estate without buying physical properties directly.

REIT – A REIT, an acronym for Real Estate Investment Trust, is a type of financial security that invests in real estate directly, either through properties or mortgages, and can be traded like a stock on the major stock exchanges.

Remodel – Rental property remodeling pertains to the process of making significant changes to the existing structure or layout of a rental property. This could involve activities like adding or removing walls, changing the floor plan, or adding new rooms or features to the property.

Renovation – Rental property renovation refers to the process of restoring, updating, or improving existing structures, systems, or aesthetics of a rental property. This can involve tasks like repairing damaged elements, upgrading outdated fixtures, or repainting walls; usually without making major structural changes.

Rent Estimates – Rent estimates are calculated predictions of the potential rental price for a property, determined through analysis of market trends, location, property features, and comparable rental prices.

Rent Increase Notice – A rent increase notice is a formal written document issued by landlords or property managers to tenants, indicating a forthcoming change in the rental amount. This notice delineates the amount of the rent adjustment, the effective date, and often the reasons for the increase. It serves as an official means to ensure transparency and provide tenants with adequate time to prepare for the new rental terms.

Rent Reporting – Rent reporting is the practice where landlords submit records of tenants’ rent payments to major credit bureaus, thereby contributing to the tenants’ credit history and potentially affecting their credit scores.

Rent Rewards – Rent rewards refer to incentive-based programs offered by landlords or property management companies that provide tenants with benefits, such as discounts, cash back, or other perks, for making timely rent payments and fulfilling other lease agreement terms.

Rent Roll – A rent roll in real estate is a document or report that provides a detailed listing of all rental properties owned by a landlord or property management company, including information about each unit such as tenant names, lease terms, rental rates, and payment history.

Rental Application (Commercial) – A commercial lease application is a standardized form that businesses complete when expressing interest in leasing a commercial rental property. This document collects vital information about the prospective tenant, including their business operations, financial health, and rental history. The collected data assists property owners or managers in assessing the business’s eligibility and fit for the desired commercial space.

Rental Application (Residential) – A “residential rental application”(also called a “residential lease application”) is a formal document that prospective tenants complete and submit when expressing interest in renting a residential property. This application gathers vital data, such as the applicant’s financial, employment, and rental history, enabling landlords or property management companies to assess their qualifications and reliability as renters. The information collected is used to determine the potential tenant’s suitability for the lease and to ensure they meet the property’s rental criteria.

Rental Property Document Software – Document software for rental real estate is any digital platform designed to manage, create, and store essential documents related to leasing and property management. It simplifies rental processes for landlords, tenants, and property managers by enabling seamless collaboration and secure access to crucial paperwork.

Rental Property Marketing Software – Rental property marketing software is a type of software designed to help property managers and landlords market their rental properties more effectively. This software typically includes features such as online property listings, lead generation tools, automated email marketing, and data analytics.

Residential Lease Agreement – A residential lease agreement is a legally binding contract between a landlord and a tenant that specifies the terms and conditions of renting a residential property. It details the duration of the lease, rent amount, payment frequency, and the rights and responsibilities of both parties. These agreements are vital in ensuring a clear understanding of expectations and preventing potential disputes.

Residential Tenant Screening – Residential tenant screening is the process by which landlords and property managers evaluate prospective tenants to determine their suitability for a rental property. This assessment typically includes checking the tenant’s credit history, rental history, employment verification, and criminal background to ensure reliability and minimize financial and operational risks.

Retail Public facing storefronts such as shopping Centers, Malls (both indoor & outdoor), Neighborhood Plazas, Strip-Malls, and In-line retail in commercial corridors.

Room Rental Agreement – A room rental (also called roommate) agreement for residential properties is a legally binding contract between a property owner or primary tenant and an individual, outlining the terms for renting a specific room within that property. The document details rent, duration, house rules, and other particulars pertinent to the rented room.


SBA Loan – An SBA loan is a commercial loan offered through banks and direct lenders, guaranteed by the U.S Small Business Administration, and used to finance real estate purchases and renovations. They offer favorable terms, including longer amortization periods and lower down payments, making them a popular choice for small businesses looking to acquire, build, or upgrade their commercial premises.

Self (Property) Management – Self (property) management is a type of rental property management where the owner oversees and handles all of the day-to-day operations of the rental property.

Self Storage – Self storage is the business of renting storage space, also known as “storage units,” to tenants, usually on a short-term basis. Self-storage tenants can include businesses and individuals.

Self Storage Property Management – Self storage property management is a specialized type of real estate management that deals with the comprehensive oversight of self storage properties such as drive up and indoor climate-controlled facilities.

Seller Financing – Seller financing, also known as owner financing, is an alternative method of financing a property purchase in which the seller of the property acts as the lender, providing a loan to the buyer. Instead of the buyer obtaining a mortgage from a traditional lender, such as a bank or mortgage company, they enter into an agreement directly with the seller to repay the loan over a specified period, usually at an agreed-upon interest rate.

Senior Housing – Senior housing (also called senior living or retirement homes) refers to multi-residence housing facilities that are intended for the elderly.

Senior Housing Property Management – Senior housing property management is a specialized type of real estate management that deals with the comprehensive oversight of senior living properties such as 55+ communities and skilled nursing facilities.

Single Family Property Management – Single family property management is the practice of overseeing and controlling all aspects of managing single-family rental properties, which are detached residential buildings designed to house one family.

Short Term Vacation Rental – A short-term vacation rental is the leasing out of a furnished living space for a short period of time – this can range from a few days to weeks.

Single Family Rental (SFR)  – A Single Family Rental (SFR) Property is a stand alone detached structure usually on it’s own lot with a yard and garage, and rented out to tenants for the purpose of tenant dwelling and landlord profit.

Smart Property Automation – Smart property automation refers to the integration of technology and IoT devices into residential or commercial properties to enhance operational efficiency, improve tenant comfort and safety, and optimize property management through automated systems and remote control.

Sponsor – A sponsor refers to the individual or entity that initiates and manages the investment opportunity. The sponsor typically identifies and acquires the real estate asset, structures the syndicate, raises capital from investors, and oversees the entire investment process, including property management and eventual exit strategies.

Student Housing Management Software – Student housing management software is a cloud-based or on-premise application that allows for the efficient management of student housing rental properties by using one unified platform to simplify common property management processes.

Student Housing Property Management – Student housing property management is a specialized type of real estate management that deals with the comprehensive oversight of student housing properties such as off-campus apartments.

Sublease Agreement – A sublease agreement is a legally binding contract in which the original tenant (sublessor) grants another party (subtenant) the right to rent and occupy the space they’re leasing from the primary landlord.

Suburban Office – Suburban office space refers to mid-rise office buildings that are located outside of a city center.

Syndication – Real estate syndication is a strategy where a group of investors pool their resources together to purchase and manage a larger real estate investment property than they would be able to afford individually.


Tenant Improvement (TI) – Tenant Improvements, often called just “TI”, is the customized alterations a building owner makes to rental space as part of a lease agreement, in order to configure the space for the needs of that particular tenant. Try our Tenant Improvement Allowance Calculator.

Tenant Turnover Rate – Tenant Turnover Rate refers to the percentage of rental units in a property that see tenants move out over a specific period, typically a year. Try our Tenant Turnover Calculator.

Tenant Welcome Letter – Tenant welcome letters are formal written communications provided by landlords or property managers to new occupants of rental properties. These letters serve as an initial introduction, often outlining key details about the property, the lease agreement, and general expectations. Their primary purpose is to facilitate a smooth transition for the tenant and to foster a positive relationship from the outset.

Title – Title is a legal document and term that evidences a person’s or entities  ownership rights to a piece of property, whether it be land, buildings, or other improvements.

Tenant Screening – Tenant screening is the act of evaluating prospective rental tenants based on a series of quantitative and qualitative factors.

Tenant Screening SoftwareTenant screening software is the various digital platforms used to generate various reports on prospective tenants for the purpose of assessing the likelihood of a potential tenant to fulfill the terms of the lease agreement.

Triple Net (NNN)Triple net (NNN) real estate is a type of lease agreement where the tenant is responsible for paying all three “nets” – property taxes, insurance, and maintenance – in addition to rent. This type of lease is commonly used in commercial real estate and can provide a stable income stream for property owners, as the tenant is responsible for covering the majority of the property’s operating expenses.

Trust Deed – See “Deed of Trust

Triplex – A three-unit residential rental property.

Trophy Building – A trophy building is a landmark property in a highly desirable location and features high-end finishes with modern systems. Trophy buildings command among top-of-market rents and are usually occupied by the local market’s premier tenants.

Turnkey Turnkey real estate refers to investment properties that are fully renovated and ready for immediate occupancy or rental, whereas the turnkey provider handles all aspects of the renovation and property management, making it an attractive option for investors who do not want to deal with the day-to-day responsibilities of property ownership.


U.S. Department of Veterans Affairs (VA) – The U.S. Department of Veterans Affairs (VA) is a federal government agency responsible for providing a variety of services and benefits to American veterans, active-duty military personnel, and their eligible family members. One of the key programs offered by the VA is the VA Home Loan program, which helps eligible individuals obtain mortgage loans for purchasing, refinancing, or constructing homes.

Utility Management Software – Utility management software is a digital platform designed to optimize the monitoring, control, and analysis of utility usage and costs, facilitating improved energy efficiency and cost savings for organizations.


VA Funding Fee – The VA funding fee is a one-time payment that the Veteran, service member, or survivor pays on a VA-backed or VA direct home loan. This fee helps to lower the cost of the loan for U.S. taxpayers since the VA home loan program doesn’t require down payments or monthly mortgage insurance.

VA Loan – A VA loan is a type of mortgage loan guaranteed by the U.S. Department of Veterans Affairs (VA) and is designed to help eligible American veterans, active-duty military personnel, and their surviving spouses obtain financing for purchasing, refinancing, or constructing a home.

Vacancy Rate – Vacancy rate is a metric that quantifies the proportion of properties that are unoccupied in a specific area or portfolio over a set period. It serves as a key metric for investors and property managers, reflecting the demand for rental space and indicating the potential for rental income. Try out our Vacancy Rate Calculator.

Vacation Rental – A vacation rental is the renting out of a furnished private dwelling residence such as an apartment, house, or professionally managed resort-condominium complex on a temporary basis to tourists as an alternative to a hotel.

Vacation Rental Agreement – A vacation rental agreement is a binding contract between a property owner and a guest that details the terms and conditions of renting a property for a short-term stay. Typically used for holiday or leisure stays, this agreement outlines specifics such as rental duration, payment terms, and guest obligations.

Vacation Rental Management – Vacation rental management is the supervision and administration of vacation rental properties, ranging from handling bookings, cleaning, and maintenance, to marketing, and taking good care of the guest experience.

Value Add – Value add is a property investment method that involves taking a property through a renovation, in order to increase its value.

Variable Interest Rate – In real estate financing, a variable interest rate, also known as an adjustable rate, refers to an interest rate on a loan or mortgage that can change over time based on market conditions or an index rate, which may affect the cost of the loan and the borrower’s monthly payments.


Wholesaling Real estate wholesaling is a strategy where an investor finds a motivated seller, enters into a contract to buy the property at a discount, and then assigns the contract to a third party, typically another investor or a fix-and-flipper, for a fee. The third party then takes over the contract and completes the purchase of the property.




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