BareBones PM

Glossary

Every landlord term, defined properly.

Leasing, tenants, accounting, tax and the operational vocabulary nobody else bothers to explain — in plain English, with a full explainer behind every definition.

ABCDEFGHIJKLMNOPQRSTUVWYZ299 terms

#

  • 1031 exchangeTaxSelling an investment property and rolling the proceeds into another while deferring capital gains tax. The deadlines are strict — 45 days to identify a replacement, 180 to close — and the money must pass through a qualified intermediary.

A

  • AbandonmentLegal & complianceFull guide →A tenant leaving without notice and apparently for good. States set out how to establish it and what to do with belongings left behind — storage periods and notice requirements — because guessing wrong can mean paying for the property you disposed of.
  • Accounting periodAccounting & ledgerThe span a set of reports covers — a month, a quarter, a year. Closing a period means agreeing it is final, after which changes are made by correcting entry rather than by quietly editing history.
  • Accounts payableAccounting & ledgerMoney you owe but have not yet paid — an invoiced repair, a utility bill received. Tracking it stops a quiet pile of unpaid invoices from making your bank balance look healthier than the business actually is.
  • Accounts receivableAccounting & ledgerMoney owed to you but not yet received — most commonly rent that is due or overdue. It appears only under accrual accounting; on a cash basis, unpaid rent is simply absent from the books until it arrives.
  • Accrual basis accountingAccounting & ledgerRecording income when it is earned and expenses when they are incurred, regardless of when cash moves. It shows the true economics of a period, at the cost of more bookkeeping and a profit figure that may not match your bank balance.
  • Accrued expenseAccounting & ledgerA cost you have incurred but not yet paid — work completed and unbilled, interest accumulated to date. It appears under accrual accounting to keep the expense in the period that actually caused it.
  • ACH paymentRent & paymentsA bank-to-bank electronic transfer, the usual way rent moves in the US. Cheaper than card payments and traceable, though it clears over a day or more, so the date a tenant initiates it is not the date you receive it.
  • ADA complianceLegal & complianceAccessibility obligations under the Americans with Disabilities Act, which apply mainly to public and commercial spaces — a rental office, for instance. Private dwellings are governed chiefly by fair housing rules instead.
  • Adverse action noticeTenants & screeningThe notice you must give when you deny an applicant, raise their deposit, or require a co-signer because of something in a consumer report. It names the agency that supplied the report and tells the applicant how to dispute it.
  • After repair valueInvesting & metricsWhat a property will be worth once planned works are complete. It anchors the arithmetic on any renovation deal, and it is the number most often estimated optimistically — comparable sales, not hope, should set it.
  • Amended returnTaxA corrected return filed after the original, typically on Form 1040-X. Landlords most often need one after discovering missed depreciation or misclassified improvements — there is a time limit, so finding the error early matters.
  • AmortizationAccounting & ledgerSpreading a cost across the periods it benefits. For loans it describes principal being repaid over the term; for accounting it is the intangible-asset equivalent of depreciation. Context tells you which meaning is in play.
  • Amortization scheduleInvesting & metricsThe table showing how each payment splits between interest and principal over a loan’s life. Early payments are mostly interest, which is why equity builds slowly at first and why the year-end interest figure is not simply the payment total.
  • APIOperations & automationA defined way for one program to talk to another. For a landlord it is what lets rent data, expenses or documents move between systems automatically instead of being retyped from one screen into the next.
  • API keyOperations & automationA secret string identifying who is calling an API. Treat it like a password: it carries your permissions, so anything holding it can act as you. Rotate it if it leaks, and never commit one to a repository.
  • Appliance replacementMaintenance & propertySwapping out a failed or ageing appliance. Usually depreciated over a shorter life than the building rather than deducted at once, though small-dollar safe harbors may allow expensing — worth checking before you assume either.
  • Application feeTenants & screeningA charge covering the cost of screening an applicant. Several states cap it at actual cost or require receipts and refunds of any unused portion, and a few ban it outright. Check your state before setting one.
  • AppreciationInvesting & metricsAn increase in the property’s market value over time. Real but unrealised until you sell or refinance, and outside your control — which is why underwriting on projected appreciation rather than cash flow is how portfolios get into trouble.
  • Arbitration clauseLegal & complianceA lease term sending disputes to a private arbitrator instead of a court. Enforceability in residential leases varies by state, and some jurisdictions restrict it precisely because it limits tenants’ access to the courts.
  • Assignment of leaseLeases & tenancyTransferring a lease entirely to a new tenant, who takes over the original tenant’s rights and obligations. Unlike a sublease, the original tenant usually steps out of the picture — which is why landlord consent is normally required.
  • Audit logOperations & automationA tamper-resistant record of actions taken in a system — who did what, when. Distinct from a general ledger: this tracks changes to the data itself, which is what lets you answer how a figure came to be wrong.
  • Audit trailAccounting & ledgerA record of who changed what and when, and of the documents behind each figure. It is what makes a number defensible rather than merely stated — the difference between having a repair deduction and being able to prove it.
  • Authorized occupantTenants & screeningSomeone permitted to live in the unit and named on the lease or an addendum, such as a child or a partner. They may not be a signing tenant, so they are usually not liable for rent — a distinction that matters at enforcement.
  • Automatic renewal clauseLeases & tenancyA provision that rolls the lease into a new term unless someone gives notice by a set date. Convenient, but easy to forget — miss the window and you may be locked in for another year at the old rent.
  • Automation workflowOperations & automationA defined sequence that runs without you — a rent reminder before the due date, an expense logged from a receipt email, a monthly report generated and sent. The point is removing the step you would otherwise forget.
  • AutopayRent & paymentsA standing arrangement where rent is collected automatically on the due date. It measurably reduces late payments because it removes the step a busy tenant forgets, and it makes the payment date predictable for your own cash flow.

B

  • Background checkTenants & screeningA search of public records for criminal history, evictions and judgments. Blanket criminal bans have drawn fair housing scrutiny; guidance favours individualised assessment of what the record was, how long ago, and its relevance to tenancy.
  • BackupOperations & automationA copy of your data kept somewhere else, so a mistake or a failure is recoverable. A backup nobody has ever restored from is a hypothesis, not a backup — the restore is the part actually worth testing.
  • Bad debtAccounting & ledgerMoney owed that you have concluded will never arrive, typically arrears from a departed tenant. On a cash basis there is nothing to deduct — you never recorded the income, so there is no loss to claim on the return.
  • Balance sheetAccounting & ledgerA snapshot of what you own and what you owe at a moment in time, with the difference being equity. Where the income statement covers a period, this covers an instant — the two answer different questions.
  • Bank feedOperations & automationAn automatic connection pulling transactions from your bank into your books. It removes manual entry and makes reconciliation a review rather than a transcription exercise — though categorisation still needs a human eye.
  • Bank reconciliationAccounting & ledgerMatching your ledger against the bank statement for a period and explaining every difference. Done monthly it takes minutes; left to year end it becomes an archaeology project across twelve statements.
  • Bankruptcy stayLegal & complianceThe automatic halt on collection that begins when a tenant files for bankruptcy, freezing eviction and collection until the court lifts it. Continuing to pursue rent through the stay can itself be sanctioned.
  • Base rentRent & paymentsThe core monthly rent before any add-ons such as pet rent, parking, utility charges or concessions. Distinguishing it matters because renewals and increases are normally calculated from base rent rather than the total a tenant actually pays.
  • Bearer tokenOperations & automationA credential sent in the Authorization header, so called because whoever bears it gets access — there is no second check on who is presenting it. This is exactly why it must travel over HTTPS and never sit in a URL.
  • Bonus depreciationTaxA provision letting you deduct a large share of a qualifying asset’s cost in its first year rather than over its life. It applies to shorter-lived components, not the building itself, and the allowable percentage has changed repeatedly.
  • Breach of contractLegal & complianceFailing to perform an obligation the lease imposes, by either side. Not every breach is material enough to end a tenancy — the remedy is normally proportionate to how fundamental the broken term was.
  • BRRRRInvesting & metricsBuy, rehab, rent, refinance, repeat — a strategy of forcing value through renovation, then pulling the original capital back out via refinance to fund the next purchase. It depends entirely on the after repair value holding up.
  • Budget varianceAccounting & ledgerThe gap between what you planned to spend or earn and what actually happened. Reviewing it monthly turns a budget from a document written in January into a tool that catches a drifting cost while there is still time to act.

C

  • Cap rateInvesting & metricsFull guide →Net operating income divided by purchase price, expressed as a percentage. It compares properties independently of how they are financed, which is exactly why it excludes mortgage payments — two buyers with different loans get the same cap rate.
  • Capital expenditureAccounting & ledgerSpending on a long-lived asset or improvement rather than day-to-day operation — a roof, a boiler, a new kitchen. Capitalized and recovered over years instead of deducted at once, which is the accounting mirror of a capital improvement.
  • Capital gainTaxThe profit on selling an asset — sale price less selling costs less adjusted basis. For rentals the gain is usually larger than expected because years of depreciation have reduced the basis it is measured against.
  • Capital improvementTaxFull guide →Work that betters the property, restores it, or adapts it to a new use — a new roof, an added bathroom, a full rewire. It is added to cost basis and depreciated over years rather than deducted all at once, unlike a repair.
  • Cash basis accountingAccounting & ledgerRecording income when money arrives and expenses when money leaves. Simpler than accrual and what most small landlords use — a December repair paid in January is a January expense, regardless of the invoice date.
  • Cash flowInvesting & metricsFull guide →What is left in your pocket after every cost including the full mortgage payment. It differs from taxable profit chiefly because depreciation reduces tax without touching cash, and principal consumes cash without being an expense.
  • Cash flow statementAccounting & ledgerA report of cash actually moving in and out over a period. It differs from the income statement chiefly because of non-cash items like depreciation and because mortgage principal consumes cash without being an expense.
  • Cash-on-cash returnInvesting & metricsAnnual pre-tax cash flow divided by the cash you actually put in — deposit, closing costs, initial works. It answers what your money is earning, which cap rate deliberately ignores because it disregards financing.
  • Cash-out refinanceInvesting & metricsRefinancing for more than the outstanding balance and taking the difference in cash. The proceeds are generally not taxable because it is borrowed money, which is what makes it a common way to recycle capital into the next purchase.
  • Certificate of occupancyMaintenance & propertyThe municipal document certifying a building is fit and lawful to occupy for its stated use. Some cities require a fresh one, or a rental licence inspection, between tenancies — letting without it can void your right to collect rent.
  • Chart of accountsAccounting & ledgerThe list of categories transactions are filed under — rent income, repairs, insurance, mortgage interest. For a landlord the useful design maps these onto Schedule E lines, so the tax return is a report rather than a reconstruction.
  • Co-signerLeases & tenancySomeone who signs the lease alongside the tenant and is equally responsible for rent and damages. Common where an applicant has thin credit or income just below the bar. A co-signer is usually liable from day one, not only after the tenant defaults.
  • Code violationMaintenance & propertyA breach of building, housing or safety code found by an inspector — missing smoke alarms, unsafe wiring, illegal occupancy. Usually comes with a deadline to correct and a fine, and can support a tenant’s habitability claim.
  • CollectionsRent & paymentsPursuing money owed after a tenant has left, whether directly, through an agency, or on a court judgment. Recovery rates are poor and the process is slow, which is the strongest practical argument for screening well at the front end.
  • ComminglingAccounting & ledgerMixing money held for others — deposits, owner funds — with your own. It is a serious breach for licensed managers and a statutory violation for deposits in many states, and it is what separate trust accounts exist to prevent.
  • Conditional approvalTenants & screeningApproving an applicant subject to an extra safeguard — a co-signer, a larger deposit, prepaid rent. Apply the conditions by written rule rather than by feel, because inconsistent conditions are a fair housing exposure in themselves.
  • Constructive evictionLegal & complianceFull guide →When conditions become so bad the tenant is effectively forced out — no heat for weeks, an unresolved hazard, persistent interference. The tenant may treat the lease as ended and stop paying, even though no formal eviction happened.
  • Consumer reportTenants & screeningAny report from a consumer reporting agency about credit, character or rental history. The label matters because it is what pulls a screening decision under the FCRA and its consent and notice requirements.
  • Contractor licenseMaintenance & propertyState or local authorisation to perform certain trades. Using an unlicensed contractor where a licence is required can void insurance, block permits, and leave you personally exposed for defective work — cheap quotes are rarely cheap here.
  • Cost basisTaxFull guide →What the property cost you for tax purposes — purchase price plus buying costs and capital improvements, minus any depreciation already taken. It sets your annual depreciation deduction and your taxable gain when you sell.
  • Cost segregationTaxA study that breaks a building into components with shorter depreciation lives — flooring, fixtures, land improvements — to accelerate deductions. The study costs money, so it generally pays only on larger or higher-value properties.
  • Credit (accounting)Accounting & ledgerThe right side of a double-entry transaction, increasing income and liabilities and decreasing assets and expenses. Unrelated to credit scores or credit cards, which is a reliable source of confusion for anyone new to bookkeeping.
  • Credit checkTenants & screeningA pull of the applicant’s credit file showing debts, payment history and collections. It predicts payment behaviour better than income alone. Running one requires written consent, and denying based on it triggers an adverse action notice.
  • Credit scoreTenants & screeningA number summarising credit risk, commonly 300 to 850. Useful as one input, misleading as the only one — a thin file can mean a young professional rather than a bad payer. Set your minimum in writing and apply it to everyone.
  • CSV importOperations & automationLoading data from a comma-separated spreadsheet export. The usual way a landlord moves off a spreadsheet or away from another platform — and the step where a column mismatch quietly corrupts a year of history if unchecked.
  • Cure or quit noticeLeases & tenancyWritten notice giving a tenant a set period to fix a lease violation or move out. It is the standard first step for a breach that is not about money — an unapproved pet, a subletting problem — and it usually must precede any filing.

D

  • Data exportOperations & automationGetting your own records out in a usable format such as CSV or JSON. Worth testing before you need it: whether a system will hand your data back cleanly determines how trapped you are if you ever want to leave.
  • Data syncOperations & automationKeeping the same information consistent across two systems. Harder than it sounds once both sides can change — deciding which one wins a conflict is the design question that makes or breaks any integration.
  • De minimis safe harborTaxAn election letting you expense low-cost items outright rather than capitalizing them, subject to a per-item or per-invoice threshold. It requires an annual election on a timely filed return — it is not simply a judgment call.
  • DebitAccounting & ledgerThe left side of a double-entry transaction. It increases assets and expenses and decreases income and liabilities. The word means nothing about good or bad — a debit to repairs and a debit to your bank account behave differently.
  • Debt serviceInvesting & metricsThe total mortgage payment, principal and interest together. Only the interest is deductible, so debt service and deductible expense are different figures — a distinction that trips up first-year landlords reliably.
  • Debt service coverage ratioInvesting & metricsNet operating income divided by annual debt service. Lenders use it to test whether the property covers its own loan — below 1.0 it does not, and most lenders want a comfortable margin above that.
  • Deductible expenseTaxFull guide →An ordinary and necessary cost of operating a rental that you subtract from rental income in the year you pay it — repairs, insurance, management fees, mortgage interest, travel to the property. It lowers taxable profit dollar for dollar.
  • Deferred maintenanceMaintenance & propertyWork that should have been done and was not. It compounds — a small roof repair postponed becomes a roof plus ceiling plus insulation — and it is one of the first things a buyer or lender prices into an offer.
  • DelinquencyRent & paymentsThe state of being behind on rent, and the metric tracking how much of the rent roll is unpaid. Watching it as a percentage month over month catches a developing problem well before any individual tenancy reaches crisis.
  • Denial letterTenants & screeningWritten notice that an application was declined. Where the decision rested on a consumer report it must meet adverse action requirements. Even where it need not, a consistent written reason is far easier to defend than a phone call.
  • DepreciationTaxFull guide →The annual deduction that recovers the cost of a rental building over 27.5 years. You deduct a slice of the building’s value each year even though no money leaves your account, which is why a profitable rental can still show a tax loss.
  • Depreciation recaptureTaxTax owed on sale for the depreciation you claimed while you owned the property. The IRS treats it as allowed or allowable, so you pay it whether or not you actually took the deduction — which is why skipping depreciation never helps.
  • Disparate impactLegal & complianceA neutral-looking policy that disproportionately harms a protected class can be unlawful even without intent to discriminate. Blanket criminal-record or income rules are the usual examples, which is why individualised assessment is safer.
  • Document storageOperations & automationKeeping leases, receipts, invoices and photos attached to the record they belong to rather than in a folder tree. The value shows up years later, when the roof invoice that reduces your taxable gain is still where the number is.
  • Double-entry bookkeepingAccounting & ledgerRecording every transaction twice, as a debit in one account and a credit in another, so the books always balance. The redundancy is the point: an entry that does not balance is an error the system surfaces immediately.
  • Due diligenceInvesting & metricsThe investigation period before committing to a purchase — inspection, title, leases, rent roll, finances and local rules. It is the last point at which discovering a problem is free rather than expensive.

E

  • E-signatureOperations & automationA legally recognised electronic signature, valid for leases in most jurisdictions under federal and state law. It removes the printing and scanning round trip, and it timestamps who signed what and when.
  • Early termination clauseLeases & tenancyA lease provision letting a tenant end the agreement before its end date, normally in exchange for a set fee and advance notice. It converts an unpredictable dispute into a known, priced outcome, which is usually better for both sides.
  • Economic vacancyInvesting & metricsRent lost to everything, not just empty units — concessions, arrears, non-paying tenants, below-market renewals. It is usually worse than physical vacancy, and it is the figure that actually explains a disappointing year.
  • Emergency repairMaintenance & propertyWork needed immediately to protect safety or prevent serious damage — no heat in winter, a burst pipe, a failed lock. Emergencies are typically the one situation where a landlord may enter without the usual advance notice.
  • Emotional support animalTenants & screeningAn animal that eases the symptoms of a disability by its presence, without task training. Fair housing law generally requires accommodating one despite a no-pets policy, though the documentation you may request is narrower than landlords often assume.
  • Employment verificationTenants & screeningConfirming an applicant works where they claim, usually with the employer directly or through pay records. It catches fabricated income and tells you whether the earnings are likely to continue through the lease term.
  • EndpointOperations & automationA single addressable operation in an API — one URL that does one thing, such as listing properties or creating a ledger entry. An API is essentially a catalogue of endpoints and the rules for calling them.
  • EquityInvesting & metricsThe property’s value less what you owe on it. It grows three ways: paying down principal, the property appreciating, and improvements that add value — and only the first is under your direct control.
  • EscrowRent & paymentsFull guide →Money held by a neutral third party until conditions are met. In rentals it usually means deposits held separately, or rent a tenant pays into court rather than to the landlord while a habitability dispute is resolved.
  • Estimated taxTaxQuarterly payments toward tax not covered by withholding. Rental profit frequently creates this obligation, and underpaying can bring a penalty even if you settle the full amount by the filing deadline.
  • Estoppel certificateLeases & tenancyA signed statement from a tenant confirming the facts of their tenancy — rent, deposit held, term, any landlord promises outstanding. Buyers and lenders require them during a sale so they are not relying solely on the seller’s word.
  • EvictionLegal & complianceFull guide →The legal process for removing a tenant, always through the courts. It is not something a landlord does personally — changing locks or removing belongings is self-help eviction and unlawful in every state, however clear the tenant’s breach.
  • Eviction historyTenants & screeningPrior eviction filings or judgments against an applicant. A filing is not a judgment — cases are dismissed, settled, or resolved in the tenant’s favour — so the record is worth reading rather than counting.
  • Exit strategyInvesting & metricsHow and when you plan to get your capital out — sell, refinance, exchange into another property, or hold and pass on. Deciding it before buying shapes the financing, the hold period and the tax planning around all three.

F

  • Fair Credit Reporting ActTenants & screeningThe federal law governing how consumer reports are obtained and used. For landlords it means getting written consent before pulling a report and sending an adverse action notice whenever the report drives a negative decision.
  • Fair Housing ActLegal & complianceFull guide →The federal law prohibiting housing discrimination on the basis of race, colour, national origin, religion, sex, familial status or disability. It governs advertising, screening, terms and conduct — not just the final yes or no.
  • Fifty percent ruleInvesting & metricsA rough assumption that operating expenses will consume about half of gross rent, before any mortgage. Crude, but a useful reality check against a spreadsheet that has quietly assumed nothing ever breaks.
  • Financial statementAccounting & ledgerA formal report of financial position or performance — usually the income statement, balance sheet and cash flow statement together. Lenders ask for these; the answer should be a report you can generate, not a spreadsheet you assemble.
  • First and lastRent & paymentsThe common move-in arrangement of collecting the first month’s rent and the last month’s rent together, usually alongside a security deposit. Several states limit the combined total, so the three together can exceed what is lawful.
  • Fiscal yearAccounting & ledgerThe twelve-month period your books cover. Most individual landlords simply use the calendar year, because that is what the personal tax return runs on and aligning them avoids a translation step every spring.
  • Fixed expenseAccounting & ledgerA cost that stays roughly constant regardless of occupancy — insurance, property tax, a loan payment. These continue during a vacancy, which is precisely why an empty month hurts more than the lost rent alone suggests.
  • Fixed-term leaseLeases & tenancyA lease with a definite end date. Neither side can normally change the rent or terminate early without cause or a clause allowing it. It gives the landlord predictable income and the tenant a locked rent for the duration.
  • ForeclosureLegal & complianceA lender taking a property after the borrower defaults. Tenants in a foreclosed rental have federal protections including notice and, in many cases, the right to see out their lease — the tenancy does not simply evaporate.
  • Form 1099-MISCTaxThe form for miscellaneous payments such as rent paid to a landlord or attorney fees. Contractor compensation moved to the 1099-NEC in 2020, which still catches people out when they reach for the older form.
  • Form 1099-NECTaxThe form reporting payments to non-employee contractors above the annual threshold. Landlords operating as a trade or business generally file one per qualifying contractor, which is why collecting a W-9 before paying anyone is the easier order.
  • Form W-9TaxThe form collecting a contractor’s name, address and taxpayer identification number. Get it signed before the first payment: chasing one from a contractor who has already been paid and moved on is a January ritual worth avoiding.
  • Free rent periodLeases & tenancyA stretch at the start of a tenancy where no rent is charged, used to win a tenant in a soft market. Spreading its cost across the lease term gives you the effective rent, which is the number that actually matters for returns.

G

  • General ledgerAccounting & ledgerThe complete record of every financial transaction, organised by account. Everything else — the income statement, the balance sheet, the tax return — is a view of it. If the ledger is wrong, every report built on it is wrong too.
  • Grace periodRent & paymentsFull guide →Days after the due date during which rent may arrive without a late fee. Some states mandate a minimum; elsewhere it is whatever the lease says. Rent is still legally late on day two — the grace period only postpones the fee.
  • Gross incomeAccounting & ledgerAll income before any expenses — rent collected plus fees, laundry, parking and anything else the property earns. It is the top line, and on its own it says almost nothing about whether a property is worth owning.
  • Gross leaseLeases & tenancyA lease where the tenant pays one flat rent and the landlord covers taxes, insurance and maintenance out of it. Simple for the tenant, but it puts every cost increase on the landlord until the lease can be repriced.
  • Gross rent multiplierInvesting & metricsPurchase price divided by annual gross rent. A fast back-of-envelope screen that ignores expenses entirely, which makes it useful for shortlisting and misleading for deciding.
  • GuarantorLeases & tenancyA third party who guarantees the tenant’s obligations, typically a parent for a student or young professional. A guarantor is usually pursued only after the tenant fails to pay, which is the practical difference from a co-signer.

H

  • HabitabilityMaintenance & propertyThe baseline condition a rental must meet to be lawfully occupied — working heat, water, plumbing, electricity, a sound structure and freedom from serious hazards. It is not about decor; it is about whether the home is fit to live in.
  • Habitability inspectionLegal & complianceAn inspection, often triggered by a tenant complaint or a rental licensing scheme, checking whether a unit meets minimum standards. Findings can force repairs on a deadline and may support a rent withholding claim.
  • Hard money loanInvesting & metricsShort-term financing secured on the property and priced on the asset rather than the borrower. Fast and expensive — used for renovation deals where speed matters and the plan is to refinance out quickly.
  • Headless softwareOperations & automationA system whose functionality is fully available through its API rather than only through its own screens. It means you can drive it from your own tools, scripts or agents instead of being confined to the interface someone else designed.
  • Holdover tenantLeases & tenancyFull guide →A tenant who remains in the property after the lease has ended. Depending on the state and how the landlord responds, accepting rent from a holdover can create a new month-to-month tenancy rather than support an eviction — so the response matters.
  • Home office deductionTaxA deduction for space in your home used regularly and exclusively to manage your rentals. Exclusively is the word that disqualifies most claims — a desk in a spare room used for anything else generally will not qualify.
  • Home warrantyMaintenance & propertyA service contract covering repair or replacement of major systems and appliances for an annual fee. Whether it pays depends on the exclusions and the claim process, both of which are worth reading before the boiler fails.
  • House hackingInvesting & metricsLiving in part of a property while letting the rest — a spare room, or one unit of a duplex. It often unlocks owner-occupier financing terms, and it splits the property into personal and rental portions for tax purposes.
  • HVACMaintenance & propertyHeating, ventilation and air conditioning — usually the most expensive system in a rental and the one whose failure most reliably becomes an emergency. Servicing it is the clearest case where preventive maintenance pays for itself.

I

  • IdempotencyOperations & automationThe property that repeating an operation produces the same result as doing it once. It is what stops a retried payment or a duplicated webhook from recording the same rent twice, and it matters far more than it sounds.
  • Implied warranty of habitabilityMaintenance & propertyFull guide →A promise, read into nearly every residential lease whether written or not, that the property will be fit to live in and kept that way. Tenants generally cannot waive it, and breaching it opens remedies such as withholding rent or repair-and-deduct.
  • Income statementAccounting & ledgerA report of income minus expenses over a period, ending in profit or loss. For a rental it answers the question the bank balance cannot: whether the property actually made money once every cost was counted.
  • Income verificationTenants & screeningProving stated income with documents — pay stubs, tax returns, bank statements, an offer letter. Self-employed applicants need a different evidence set than salaried ones, and refusing to accept it can itself become a fair housing issue.
  • IntegrationOperations & automationA connection between two systems so data flows without manual re-entry. Every hop you remove is a class of transcription error removed with it, which is usually worth more than the time saved.
  • Internal rate of returnInvesting & metricsThe annualised return accounting for the timing of every cash flow, including the eventual sale. More complete than cash-on-cash because it values money received sooner more highly, and correspondingly more sensitive to your assumptions.

J

K

  • Key moneyLegal & complianceA payment demanded for granting or renewing a tenancy, over and above rent and lawful deposits. Illegal in many jurisdictions as a disguised premium, and where it is banned, taking it can mean repaying it with penalties.

L

  • Land allocationTaxSplitting a purchase price between land, which never depreciates, and the building, which does. The county assessment ratio is the common defensible method; an appraisal is stronger. Whichever you use, keep the document that supports it.
  • Landlord referenceTenants & screeningA conversation with a previous landlord about how the applicant actually behaved as a tenant. Call the previous one rather than the current one: a current landlord with a problem tenant has an incentive to help them leave.
  • Landlord-tenant actLegal & complianceThe state statute setting the ground rules of a tenancy — notice periods, entry, deposits, habitability, eviction procedure. It overrides conflicting lease terms, so a clause contradicting it is simply unenforceable.
  • LandscapingMaintenance & propertyGrounds upkeep. Who does it should be explicit in the lease: a single-family tenant often takes it on, while multifamily landlords usually retain it. Unstated, it reliably becomes the thing nobody does until the city writes.
  • Last month’s rentRent & paymentsRent collected up front to cover the final month of the tenancy. Legally distinct from a security deposit in most states — it can only be applied to that last month, not to damage — and some states count it toward the deposit cap.
  • Late feeRent & paymentsFull guide →A charge for rent paid after the due date or grace period. Many states cap it as a percentage of rent or a flat amount, and a fee that functions as a penalty rather than a reasonable estimate of cost can be struck out entirely.
  • Lead paint disclosureLeases & tenancyA federally required disclosure for most housing built before 1978, telling tenants what is known about lead-based paint and giving them the EPA pamphlet. It is one of the few disclosures with a federal penalty attached, so it is not optional paperwork.
  • Lead-based paintMaintenance & propertyPaint containing lead, common in housing built before 1978 and hazardous particularly to young children. Federal rules require disclosure to tenants, and disturbing it during renovation triggers certified work practices.
  • Lease abstractLeases & tenancyA one-page summary of a lease’s key terms — parties, dates, rent, escalations, options, deposit — pulled out so nobody has to reread thirty pages. Standard practice when a portfolio changes hands or a lender is underwriting.
  • Lease addendumLeases & tenancyA separate document attached to a lease that adds terms without rewriting the original — a pet policy, a pool rule, a lead paint disclosure. It carries the same legal weight as the lease provided both parties sign it.
  • Lease agreementLeases & tenancyFull guide →The written contract that sets who may occupy a property, for how long, at what rent, and under what rules. It binds both sides — a landlord cannot change the terms mid-term any more than a tenant can, unless the lease itself allows it.
  • Lease amendmentLeases & tenancyA signed change to terms already in the lease — a new rent, a different end date, an added occupant. An amendment modifies what exists, where an addendum bolts something new on. Both need signatures from everyone bound by the lease.
  • Lease buyoutLeases & tenancyA negotiated payment that releases a tenant from the remainder of their lease. It is the ad-hoc version of an early termination clause, agreed when the lease has no such provision and the tenant needs to leave anyway.
  • Lease enforcementLegal & complianceActing on a breach — notice, cure period, then escalation if needed. Enforcement must be consistent across tenants: selectively enforcing a rule against some and not others invites both a fair housing complaint and a weak court position.
  • Lease renewalLeases & tenancyFull guide →Extending an expiring lease for a further term, usually with new dates and sometimes a new rent. Renewing a good tenant is almost always cheaper than turning the unit over, because the vacancy and make-ready costs of replacing them are substantial.
  • Lease termLeases & tenancyThe length of time the lease runs, from the start date to the end date. Twelve months is the common default, but any agreed period works. The term determines when rent can be raised and when either side may walk away without penalty.
  • Lease terminationLeases & tenancyFull guide →Ending a lease, whether at its natural expiry, by mutual agreement, or because one side breached it. How it ends matters: a properly documented termination protects the deposit accounting and closes off later disputes about who owed what.
  • Lease violationLeases & tenancyAny breach of the lease terms — an unauthorized pet, an extra occupant, smoking where it is banned, persistent noise. Most are curable: the tenant is given written notice and a period to put it right before anything escalates.
  • LienLegal & complianceA legal claim against property securing a debt, which generally must be cleared before the property can be sold cleanly. Tax liens, judgment liens and mechanics liens are the ones landlords meet most often.
  • Liquidated damagesLegal & complianceA sum fixed in the lease as the agreed cost of a specific breach, such as an early termination fee. Enforceable only if it is a reasonable pre-estimate of loss; if it looks like a punishment, a court will usually strike it.
  • Loan-to-valueInvesting & metricsThe loan balance as a percentage of the property’s value. It drives what a lender will offer and at what rate, and a falling LTV as you pay down and values rise is what eventually makes a refinance worthwhile.
  • Long-term capital gainTaxGain on an asset held more than a year, taxed at preferential rates. For rentals the depreciation portion is separated out and recaptured at a different rate, so the whole gain is not taxed uniformly.

M

  • MACRSTaxThe modified accelerated cost recovery system, the depreciation regime in use since 1986. Residential rental buildings run 27.5 years under it, commercial 39, and shorter-lived components such as appliances and carpet run five or seven.
  • Maintenance requestMaintenance & propertyA tenant’s report that something needs fixing. Logging it with a timestamp protects both sides: the tenant has proof they told you, and you have proof of when the clock started and how quickly you acted.
  • Make-readyMaintenance & propertyThe work that gets a vacant unit into lettable condition — clean, repaired, painted, keys rekeyed. A standard make-ready checklist is what keeps the turn from expanding to fill however long the unit happens to be empty.
  • Market rentRent & paymentsWhat a unit would let for today, given its condition, size and location. Set it from actual recent lettings of comparable units rather than asking prices — asking rents include the ones still sitting empty because they are too high.
  • Material participationTaxThe tests determining whether you are involved enough in an activity for it to count as non-passive. Meeting one changes how losses may be used, which is why contemporaneous records of hours actually matter rather than being bureaucracy.
  • Mechanics lienLegal & complianceA claim filed by a contractor or supplier who has not been paid for work on the property. It can attach even where you paid a general contractor who then failed to pay a subcontractor — lien waivers exist for exactly that risk.
  • Mileage deductionTaxTravel to and from your rentals for management, repairs or showings is deductible, typically at the standard mileage rate. It requires a contemporaneous log of date, destination, purpose and distance — a reconstruction at year end is weak evidence.
  • Mitigation of damagesLegal & complianceThe duty to limit your losses after a breach. If a tenant leaves early, most states require you to make reasonable efforts to re-let rather than leave the unit empty and bill them for the whole remaining term.
  • Mold remediationMaintenance & propertyRemoving mold and, critically, fixing the moisture source that caused it. Cleaning the visible growth without addressing the leak guarantees its return, and unresolved mold is a frequent basis for habitability complaints.
  • Month-to-month tenancyLeases & tenancyFull guide →A tenancy that renews automatically each month until either side gives notice. It offers flexibility on both sides, usually in exchange for a higher rent and the risk that the tenant leaves with only thirty days of warning.
  • Mortgage interest deductionTaxThe interest portion of a rental mortgage is deductible on Schedule E; the principal portion is not. Your lender’s year-end statement gives the split, which is the figure to use rather than the sum of twelve payments.
  • Move-in costRent & paymentsEverything a tenant pays before taking possession — first month, any last month, deposits, pet fees and prorated rent. Worth quoting as one figure up front, because a surprise at signing is a common reason a letting falls through late.
  • Move-in inspectionLeases & tenancyA documented walkthrough recording the property’s condition before the tenant takes possession, ideally with dated photos and a signed checklist. It is the baseline every later damage claim is measured against, and its absence usually decides deposit disputes against the landlord.
  • Move-out inspectionLeases & tenancyFull guide →The walkthrough at the end of a tenancy, comparing the property against the move-in record. Some states give the tenant a right to attend and to fix issues first. What you find here drives the deposit itemization.

N

O

  • OAuthOperations & automationA standard letting you grant one service limited access to another without handing over your password. Signing into a tool with your Google account is OAuth — the tool gets a scoped token, not your credentials.
  • Occupancy limitLeases & tenancyThe maximum number of people permitted to live in a unit, set by local code and stated in the lease. Limits must be based on unit size and safety rather than family composition, or they risk becoming a fair housing problem.
  • Occupancy standardsTenants & screeningWritten rules on how many people may live in a unit, generally expressed by bedroom count. A widely referenced federal guideline is two people per bedroom, but state and local rules vary and standards must not be a proxy for excluding families.
  • One percent ruleInvesting & metricsA screening heuristic that monthly rent should be at least one percent of purchase price. A filter, not an analysis — it is unattainable in many markets and says nothing about expenses, financing or condition.
  • Operating accountAccounting & ledgerThe everyday bank account rent lands in and bills are paid from. Keeping it separate from personal accounts is the single highest-return bookkeeping habit for a small landlord: it makes the year’s expenses a statement rather than an excavation.
  • Operating expenseAccounting & ledgerA recurring cost of running the property — insurance, taxes, repairs, management, utilities. Conventionally excludes mortgage payments and capital spending, which is why net operating income is measured before both.
  • Operating expense ratioInvesting & metricsOperating expenses as a share of gross income. Useful for comparing properties and for sanity-checking a seller’s numbers — an unusually low ratio often means deferred maintenance rather than efficient management.
  • Option to renewLeases & tenancyA clause letting the tenant extend the lease for a further term on stated conditions, usually if they give notice by a deadline. The rent for the option period is often fixed or capped in advance, which limits your ability to reprice.
  • Owner portalOperations & automationWhere a property owner sees statements, reports and documents for units someone else manages. Relevant when you use a manager, or manage on behalf of others — it is the reporting surface between the two roles.

P

  • Partial paymentRent & paymentsRent paid in part rather than in full. Accepting one can, in some states, undermine a pending eviction by implying you accepted the tenancy continuing — which is why leases often specify how partial payments are applied and whether they are accepted at all.
  • Passive activity lossTaxRental losses are generally passive and cannot offset wage income, with a limited allowance that phases out at higher incomes. Disallowed losses are suspended and carried forward, usually released when you sell the property.
  • Pay or quit noticeLegal & complianceNotice giving a tenant a short window — often three to five days — to pay the rent owed or vacate. The most common first step in a non-payment eviction, and it must state the amount due accurately to survive challenge.
  • Payment planRent & paymentsA written agreement letting a tenant clear arrears in instalments alongside ongoing rent. Almost always cheaper than eviction, provided it is in writing, has dates and amounts, and is tracked against the ledger rather than remembered.
  • Pest controlMaintenance & propertyTreatment for infestations. Responsibility usually depends on cause and timing — an infestation present at move-in is generally the landlord’s, one caused by a tenant’s housekeeping may not be — and several states address it directly.
  • Pet addendumLeases & tenancyThe document setting which animals are allowed, how many, and on what terms. It is where pet rent, pet deposits and damage responsibility are defined. Service and support animals are not pets and generally fall outside it entirely.
  • Pet depositLeases & tenancyMoney collected specifically against animal-related damage. Some states cap it, some fold it into the overall deposit limit, and some distinguish a refundable deposit from a non-refundable fee. Check which applies before you collect it.
  • Petty cashAccounting & ledgerA small float for minor purchases. Convenient and quietly dangerous: cash spending is the least traceable kind, and untracked petty cash is where a landlord’s deductions most often go missing at year end.
  • Placed in serviceTaxThe date a property became ready and available to rent — not the closing date. Depreciation starts here, so a property bought in March and first listed in June begins its clock in June, not at purchase.
  • Portfolio loanInvesting & metricsA loan a lender keeps on its own books rather than selling on, so it can set its own criteria. Often the route for investors who have hit the conventional limit on financed properties, at a somewhat higher rate.
  • Prepaid expenseAccounting & ledgerMoney paid in advance for something you will consume later — an annual insurance premium, a year of software. Under accrual accounting it is recognised across the months it covers rather than all in the month you paid.
  • Preventive maintenanceMaintenance & propertyScheduled work done before something fails — servicing the heating, clearing gutters, checking seals. It is the cheapest maintenance there is, because the alternative is an emergency call-out plus whatever the failure damaged on its way.
  • Private money lenderInvesting & metricsAn individual or small firm lending their own capital, often on relationship terms rather than an institutional process. Flexible and quick; the trade is a higher rate and, usually, a much shorter term.
  • Property inspectionMaintenance & propertyA scheduled look at the property’s condition during a tenancy, distinct from move-in and move-out. It catches developing problems early, and it requires the same advance notice as any other non-emergency entry.
  • Property tax deductionTaxProperty taxes on a rental are deductible as an operating expense on Schedule E. Unlike taxes on a personal residence, they are not subject to the state and local tax cap that applies to itemised personal deductions.
  • Prorated rentRent & paymentsFull guide →A partial month’s rent for a tenancy that starts or ends mid-month, calculated by dividing monthly rent by the days in the month and multiplying by the days occupied. Agree the method in writing — daily rates differ depending on whether you use 30 days or the actual month.
  • Prospective tenantTenants & screeningSomeone who has enquired or applied but has not yet signed. Fair housing obligations attach from the first contact, not from the application — how you answer an enquiry is already part of the record.
  • Protected classTenants & screeningA characteristic it is unlawful to base a housing decision on. Federally: race, colour, national origin, religion, sex, familial status and disability. Many states and cities add more, such as source of income, age, or sexual orientation.
  • Punch listMaintenance & propertyThe itemised list of outstanding tasks at the end of a job or a turn. It exists so that a project is finished by agreement rather than by someone deciding it looks done and quietly leaving three things undone.

Q

R

  • Rate limitOperations & automationA cap on how many requests a caller may make in a period, protecting the service from overload. Exceeding it returns an error telling you to wait — well-behaved integrations back off rather than retrying immediately.
  • Ratio utility billingRent & paymentsSplitting a building’s utility bill across units by a formula — square footage, occupant count — where separate meters do not exist. Regulated or banned in some states, and it must be disclosed in the lease wherever it is used.
  • Real estate professional statusTaxA tax classification that can lift the passive loss limits, requiring more than half your working time and over 750 hours a year in real property trades. The bar is high, frequently challenged, and demands detailed time records.
  • Reasonable accommodationTenants & screeningA change to a rule, policy or service that lets a disabled tenant use the home equally — waiving a no-pets rule for a support animal, assigning a closer parking space. You may verify the need, but not ask for the diagnosis.
  • Reasonable modificationLegal & complianceA physical change to a unit that a disabled tenant may make — a grab rail, a ramp, a widened door. Distinct from an accommodation, which changes a rule; here the tenant usually bears the cost and may have to restore on leaving.
  • ReconciliationAccounting & ledgerChecking your records against an independent source until the two agree. It is where errors, duplicates and missing transactions actually get caught — an unreconciled book looks complete right up until the moment you rely on it.
  • RefinanceInvesting & metricsReplacing an existing loan with a new one, usually for a better rate or term. Worth modelling against the closing costs and the reset amortization — a lower rate over a fresh thirty years is not automatically cheaper overall.
  • REITInvesting & metricsA company owning income-producing property whose shares trade like stock. It offers property exposure without owning or managing anything, at the cost of any control over the assets.
  • RentRent & paymentsThe payment a tenant makes for the right to occupy the property, normally monthly and in advance. Everything else in this category is a variation on when it is due, what happens if it is late, and what may be added to it.
  • Rent abatementRent & paymentsA reduction in rent for a period when the property was not fully usable — a long outage, major works, a habitability failure. Some states grant it by statute; elsewhere it is negotiated, and a written agreement prevents it becoming a dispute later.
  • Rent arrearsRent & paymentsUnpaid rent that has built up over time. Tracking it per tenant with dates and amounts is what turns a vague sense that someone is behind into a figure you can act on, demand, or take to court.
  • Rent concessionLeases & tenancyA discount or incentive used to attract a tenant — a month free, reduced rent for the first period, waived fees. It lets you fill a unit without lowering the headline rent, which protects the property’s stated market value.
  • Rent controlRent & paymentsFull guide →Local law capping how much rent may be charged or increased. Rules vary enormously by city and often exempt newer buildings or small owner-occupied properties. Where it applies, it constrains increases, renewals and sometimes your grounds for ending a tenancy.
  • Rent creditRent & paymentsAn amount applied against rent owed, whether as a concession, a goodwill gesture, or reimbursement for a repair the tenant paid for. Record it on the ledger as a credit rather than quietly accepting less — the arithmetic must still reconcile.
  • Rent due dateRent & paymentsThe day rent must be received, set by the lease and usually the first of the month. Received, not posted — a lease that does not say which can turn a mailing date into an argument every time a payment runs close.
  • Rent increaseRent & paymentsRaising the rent, normally only at renewal or, in a month-to-month tenancy, with proper written notice. Rent-controlled and rent-stabilized units cap how much and how often. A rise that loses a good tenant can cost more than it gains.
  • Rent increase noticeRent & paymentsFull guide →Written notice of a rise, given the required number of days before it takes effect — commonly 30 to 90 depending on the state and the size of the increase. Get the notice period wrong and the increase is simply unenforceable.
  • Rent ledgerRent & paymentsA dated running record of every charge and payment for a tenancy. It is the document that settles arguments about what was owed and when, and the one a court will want if arrears ever end up in front of one.
  • Rent rollRent & paymentsFull guide →A schedule of every unit with its tenant, rent, lease dates and payment status. It is the single document a lender or buyer asks for first, because it shows income and lease exposure across the whole property at once.
  • Rent stabilizationRent & paymentsA regime limiting increases to a set percentage each year while granting tenants strong renewal rights. Related to rent control but usually more permissive, and typically administered by a local board that publishes the allowable increase annually.
  • Rent withholdingLegal & complianceA tenant holding back rent until serious defects are fixed, permitted in some states and usually requiring the money be paid into escrow rather than pocketed. Withholding outside the statute is simply non-payment.
  • Rent-to-income ratioTenants & screeningMonthly rent as a share of gross monthly income. The common bar is rent at or below one third of income, often stated as income being at least three times the rent. It is a screening threshold, not a law.
  • Rental applicationTenants & screeningThe form collecting an applicant’s identity, income, employment, rental history and consent to run checks. That consent is what makes the credit and background reports lawful, so an incomplete application is not a minor administrative problem.
  • Renters insurance requirementLeases & tenancyA lease term obliging the tenant to carry their own policy, often with a minimum liability limit and the landlord named as an interested party. It covers the tenant’s belongings, which your policy does not, and reduces the odds of a dispute after a loss.
  • RepairMaintenance & propertyWork that keeps the property in ordinary working condition without upgrading it — patching a leak, replacing a broken window, servicing a furnace. Deductible in the year you pay it, unlike an improvement, which must be capitalized.
  • Repair and deductLegal & complianceA tenant remedy in many states allowing them to arrange a repair the landlord failed to make and subtract the cost from rent. Usually capped, and conditional on proper written notice and a reasonable time to act first.
  • REST APIOperations & automationThe most common style of web API, built on ordinary HTTP verbs — GET to read, POST to create, PATCH to change, DELETE to remove. Its predictability is why almost any tool can talk to almost any other.
  • Retaliatory evictionLegal & complianceActing against a tenant because they exercised a legal right — reporting a code violation, joining a tenant group, requesting repairs. Most states presume retaliation if the action follows shortly after, shifting the burden onto the landlord.
  • Return on investmentInvesting & metricsGain relative to what was invested, expressed as a percentage. Loosely used and rarely defined the same way twice — always check whether a quoted ROI includes appreciation, principal paydown, tax effects, or none of them.
  • Right of entryLeases & tenancyFull guide →The landlord’s right to enter the property, normally requiring advance written notice — commonly 24 to 48 hours — and a legitimate purpose such as repairs or a showing. Emergencies are the usual exception. Entering outside these rules invites a quiet enjoyment claim.
  • Right of first refusalLeases & tenancyA clause giving the tenant the first chance to buy the property, or to take another unit, before it is offered to anyone else. It is more common in commercial leases but appears in long residential tenancies too.
  • RoommateTenants & screeningA co-tenant sharing the property under the same lease. Where the lease carries joint and several liability, each roommate owes the entire rent, not a share — so one leaving does not reduce what you can collect from the others.
  • Roommate removalTenants & screeningThe awkward reality that a tenant generally cannot evict a co-tenant — only the landlord, as the party to the lease, can begin removal, and only on lease grounds. A tenant asking you to remove their roommate is asking for something they cannot do themselves.
  • Routine maintenance safe harborTaxLets you deduct recurring work you reasonably expect to perform more than once over a set period — servicing, inspections, cleaning — even where it might otherwise look capitalizable. It turns on the expectation of recurrence.
  • Row-level securityOperations & automationA database feature restricting which rows a user can see or change, enforced by the database rather than the application. It means a bug in the app cannot expose another user’s data, because the isolation sits underneath the code.

S

T

  • Tax yearTaxThe annual period a return covers, almost always the calendar year for individual landlords. It determines which side of the line a late-December payment falls on, which is why timing a repair can matter.
  • Tenancy at sufferanceLeases & tenancyWhat exists when a tenant stays past the end of the lease without the landlord’s permission. It is barely a tenancy at all — the occupant has no right to be there, but is not yet a trespasser either, and the landlord must still evict rather than remove them.
  • Tenancy at willLeases & tenancyAn open-ended arrangement with no fixed end date, continuing as long as both sides agree. Either party may end it with proper notice. It often arises informally — a handshake letting, or a tenant staying on after a lease expires with the landlord’s blessing.
  • Tenancy in commonInvesting & metricsCo-ownership where each owner holds a separate, possibly unequal share that can be sold or inherited independently. Distinct from joint tenancy, where a deceased owner’s share passes automatically to the survivors.
  • TenantTenants & screeningThe person with a legal right to occupy the property under a lease. A tenant is not simply whoever lives there — the right comes from the agreement, which is why who signs it matters as much as who sleeps there.
  • Tenant damageMaintenance & propertyHarm beyond normal wear and tear, caused by negligence or misuse — a hole in a door, a stained carpet, a broken fixture. Deductible from the deposit, provided you can show the condition before and after with dated evidence.
  • Tenant improvement allowanceLeases & tenancyMoney a landlord contributes toward fitting out a space for a tenant, usually in commercial leases and quoted per square foot. It is typically capitalized and recovered over time rather than deducted in the year it is spent.
  • Tenant portalOperations & automationA self-service area where tenants pay rent, submit maintenance requests and read documents. It cuts the volume of small messages considerably, and it timestamps requests automatically, which matters when response time is disputed.
  • Tenant privacyLegal & complianceThe tenant’s right to be left alone in their home, and limits on how their personal information may be used or shared. It underpins entry-notice rules and constrains what you may disclose about a tenant to third parties.
  • Tenant retentionTenants & screeningKeeping good tenants through renewals rather than replacing them. Responsive repairs, fair increases and simply being reachable do most of the work — and each retained tenancy avoids a turnover’s worth of cost and empty weeks.
  • Tenant screeningTenants & screeningThe process of checking an applicant’s credit, income, rental history and background against written criteria. Consistency is the whole point: the same checks, the same bar, for every applicant, documented — which is both better selection and your fair housing defence.
  • Tenant turnoverTenants & screeningThe rate at which tenants leave and are replaced. Every turnover costs vacancy, make-ready work and re-letting effort, so a modest rent increase that keeps a good tenant usually beats a larger one that loses them.
  • Triple net leaseLeases & tenancyA commercial lease where the tenant pays property taxes, insurance and maintenance on top of base rent. The landlord’s income becomes highly predictable because the variable costs are passed through, which is why NNN properties trade on lower yields.
  • Trust accountAccounting & ledgerA separate bank account holding money that belongs to someone else — security deposits, or rent collected on an owner’s behalf. Many states require one by law for deposits, with rules on interest and a strict ban on mixing it with your own funds.
  • Turn costMaintenance & propertyFull guide →The total spent preparing a unit for the next tenant — cleaning, paint, repairs, carpet, plus the lost rent while it sits empty. Costing it honestly is what makes the case for keeping a decent tenant at a modest increase.
  • TurnoverMaintenance & propertyThe period between one tenancy ending and the next beginning, and the work done in it. Every day of it is lost rent while fixed costs continue, which is why compressing the turn is worth real money.
  • Two-factor authenticationOperations & automationRequiring a second proof of identity beyond a password, usually a code from a phone or an authenticator app. It is the single most effective protection on any account that touches rent money or tenant data.

U

  • Unauthorized occupantTenants & screeningA person living in the unit who was never approved or added to the lease. It is a common lease violation and usually curable — add them properly after screening, or they leave. It becomes serious when it also breaches occupancy limits.
  • Unconditional quit noticeLegal & complianceNotice to vacate with no opportunity to fix the problem, reserved for serious conduct such as illegal activity or repeated violations. Available only on grounds the state specifically allows, so it is the notice most often used wrongly.
  • Unlawful detainerLegal & complianceThe lawsuit a landlord files to recover possession from a tenant who will not leave. It is the formal name for an eviction case in many states, and it is deliberately fast-tracked compared with ordinary civil litigation.
  • Useful lifeMaintenance & propertyHow long an asset is expected to remain serviceable — a roof twenty to thirty years, a water heater ten, carpet five to seven. It drives both replacement planning and how an item is depreciated.
  • Utility allowanceRent & paymentsA fixed sum a landlord contributes toward utilities, or an estimate deducted from rent in subsidised housing. It matters where the landlord holds the account but the tenant’s consumption is theirs — it caps your exposure to a heavy user.

V

W

  • Waiting listTenants & screeningAn ordered record of interested applicants for a unit that is not yet available. Keeping it in a documented order matters: an ad-hoc list that gets reshuffled by preference is difficult to defend if a fair housing complaint follows.
  • WarrantyMaintenance & propertyA promise that work or a product will perform for a stated period. Keeping warranty documents with the property record is what makes a failed water heater a phone call instead of a replacement purchase.
  • WebhookOperations & automationA message a system sends to a URL you control the moment something happens, rather than waiting to be asked. The inverse of polling: instead of checking for new payments every hour, you are told the instant one lands.
  • Work orderMaintenance & propertyA dated record of a maintenance job — what was reported, who did it, what it cost, when it closed. It is both an operational tool and the evidence that you responded, which matters if habitability is ever alleged.
  • Writ of possessionLegal & complianceThe court order authorising a sheriff to remove a tenant after the landlord wins. This — not the judgment, and certainly not the landlord — is what actually restores possession, and only a law enforcement officer executes it.
  • Write-offAccounting & ledgerRemoving an amount from the books as uncollectible or worthless — abandoned arrears, a scrapped appliance. Casually used to mean any deduction, which causes confusion, because a tax deduction and an accounting write-off are not the same thing.
  • Wrongful evictionLegal & complianceRemoving or attempting to remove a tenant without lawful grounds or proper process. Damages can include the tenant’s moving costs, rent differential and sometimes statutory penalties, which is why procedure matters more than being right.

Y

  • YieldInvesting & metricsAnnual income as a percentage of what the property cost or is worth. Close to cap rate but used loosely — gross yield ignores expenses, net yield deducts them, so always check which one a quoted figure means.

Z

  • ZoningLegal & complianceLocal rules on how land may be used — whether a property may be let at all, split into units, or run as a short-term rental. Zoning decides what is permitted; the lease only decides the terms of something already allowed.

Stop looking these up in April.

Track rent, expenses and depreciation per property all year, then export the totals in the shape your tax form asks for.

Create your free accountBrowse all resources

Keep reading

Schedule E, explainedDepreciation for landlordsWhat you can deduct