Whether you serve as a property manager, a real estate agent, a broker, rental property owner, or even an individual looking for a rental place near Houston, it is wise to have knowledge of the lingo often used. Knowing the lingo of property managers and the real estate industry can make it easier to understand everything going on. Below, you’ll find some of the most commonly used terms and their definitions.
Affordable Housing Act– a state or federal agency that offers assistance and governs the rent to anyone that meets the specified criteria of the act.
Amenities- features included with the property that help enhance its value and make it more appealing to tenants.
Conventional Housing- housing that conforms to the current market rate and standards of the area’s housing.
Equal Housing Opportunity– all American citizens are able to live in various communities regardless of their race, nationality, gender, age, disability, or status.
Eviction– the legal process of removing a tenant from their home due to a violation of the contract. The reason for eviction may range from late or missed payments to disorderly conduct.
Lease Option- this agreement gives the tenant the option of buying the property after the term of the lease is up.
Low Income Tax Credit Properties– properties that provide the owner with tax credits for renting to eligible tenants. These policies are defined by the Justice department, HUD and the IRS.
Market Rate- this is the current rates set by the real estate market. Knowing the current rates makes it easier to determine your own rental rates as the years go by.
Property Management Agreement- an agreement between the property management team and owner of the rental property. This agreement gives details that pertain to how payments are made.
Proration- Expenses that are prepaid or paid in arrears at the signing of the lease. This money is then divided between the tenant and landlord at the closing of a purchase.
Rent to Own- this is a lease agreement that gives the tenant the option to buy the property.
Section 8- this is a voucher program that provides amenities and more choices to low income families. This also gives them the option to choose privately owned homes.
Single Family Housing– a place that is designed for a single family unit to reside in.
Subsidy- granted government assistance to a family or person.
Tenant Damages- any damage caused by the tenant that doesn’t include normal wear and tear.