Property Management and Rental Terms You Should Know
Whatever industry you choose, it is critical to understand everything you can about it. But, there is a lot to consider when it comes to real estate and rental property management. Hence, continue reading as we go through some of the most frequent real estate and rental property management terminology that all industry professionals should be familiar with.
Why Is It Necessary to Understand Property Management Terms?
Whether you’re a landlord, property manager, renter, or looking to buy real estate, it’s critical to understand basic real estate terminology. Furthermore, if you want to become a landlord or property manager in Toronto, you must first have some industry knowledge.
Yet, there are various distinct types of real estate and property management terminologies to be familiar with. As a result, this essay will go through some fundamental real estate concepts, rental property phrases, management language, and financial vocabulary.
Definitions and Terminology Used in Real Estate
To begin, here are some fundamental real estate words and definitions. These are vital to understanding whether you’re new to the sector or want to learn more about real estate investing.
MLS stands for Multiple Listing Services (MLS)
The Multiple Listing Service (MLS) is a website where real estate agents and brokers can search for properties in specified geographic areas. When a licenced real estate agent offers a property for sale, other agents and brokers add it to the MLS database for examination. Buyers’ agents can then search the MLS for houses for their clients.
Agent for Real Estate
A real estate agent is a registered professional who assists people in purchasing or selling real estate. A real estate broker will guarantee that real estate transactions are lawful, paperwork is correct, and monies are correctly documented. Real estate agents typically earn a commission on their sales based on the property’s price.
Property for Investment
When you find the right investment property, an investment property is purchased to produce a profit or return on investment.
For example, long-term or short-term commitments allow you to produce revenue by housing tenants (and maintaining good tenant retention) or flipping the property for a profit.
Short-term and long-term rentals
Investment properties, as previously said, can be long-term or short-term commitments. A long-term rental is one that is rented for an extended length of time. For example, a single-family home with a 12-month lease. On the other hand, a short-term rental could be a vacation home or Airbnb that is only rented out for a few days or weeks at a time.
Property Management Company
A rental property management team assists in managing all areas of a rental property business. Property managers work on behalf of landlords and assist with various activities, such as marketing your property, tenant screening, maintenance, rent collecting, and more. They also assist in hiring contractors to work on rental homes. Property managers are typically paid a service fee, a proportion of the monthly rental amount.
Common Rental Property Terms
Understanding some basic real estate jargon is one thing, but understanding rental properties are critical. Thus, here are some common rental property words and sorts of rental homes you can encounter on the market.
Condominiums, often known as condos, are independently owned residences inside an apartment complex or community. The individual unit belongs to the owner, and the residents share all communal areas and amenities equally.
Renting of a single-family home
A single-family rental is a single-standing property built for one family. Investors who own single-family rentals own the property and the land it is situated on.
Housing for Multiple Families
A multi-family rental is a residential property with multiple rental units. Apartments, condos, duplexes, and townhomes are examples of multi-family rentals.
A duplex is a single rental property that is divided into two distinct living sections or apartments. Each tenant also has their own private entrance to their half of the house.
Instead of dwelling space, commercial property is used for business or work-related reasons. Landlords typically use investment real estate services for commercial real estate to businesses or tenants.
Rental Property Management Terminology
Let’s get into some property management jargon now that we’ve reviewed several properties and what they mean. After all, knowing these phrases and definitions is essential whether you’re a landlord or property manager, as they’re all critical in your daily activities.
A landlord or property manager conducts tenant screening when they investigate a prospective renter’s credit history, job status, rental history, and other factors. Screening is an important component of the renting process since it assists property managers and landlords in finding renters who will follow the conditions of the lease agreement.
Deposit for Security
A security deposit is a one-time payment made by tenants before moving into a rental property. A security deposit protects landlords from property damage and ensures tenants satisfy their financial commitments under the lease agreement.
Rate of Vacancy
A vacant rental unit is one that is not inhabited. The vacancy rate is the ratio of vacant rental units to a landlord’s total number of units.
Maintenance of Rental Properties
Maintenance is a generic word for the actions it takes to keep rental properties in good condition. Frequent maintenance calls are potential signs of larger issues in the property, for example, emergency repairs, inspections, minor repairs, pest control, and other services.
The legal procedure by which a landlord removes a tenant from a property owing to lease infractions is known as eviction. Evictions must be carried out in accordance with municipal, state, and federal legislation. Nonpayment of rent, substantial property damage, or unlawful activity are examples of common violations.
Why Do You Need Rental Property Management?
Before investing in real estate, learning as much as possible about the industry is critical. Now that we’ve covered some of the most significant rental property management terminologies keep them in mind while dealing with tenants, landlords, or contractors.
Rental property management is essential for busy landlords who don’t have time to attend to each property individually. A solid property management team can assist you with everything from marketing rentals to tenant screening, upkeep, and rent collection. Property Management Toronto is the place to go if you need an excellent property management staff for your rental properties.