Navigating property management and real estate can come with a lot of unfamiliar terms. This glossary is here to help homeowners, tenants, board members, and investors understand the language used throughout the industry, from HOA basics to accounting and maintenance terminology.
A
Account Ledger (Owner/Homeowner/Tenant Ledger)
A detailed financial record showing all charges, payments, credits, and balances.
Accounts Payable (AP)
Money owed to vendors or service providers for completed work.
Accounts Receivable (AR)
Payments owed to a property or HOA (rent, dues, fines, reimbursements).
Accrual Accounting
Accounting method recording income and expenses when earned or incurred.
ADA Compliance
Accessibility requirements under the Americans with Disabilities Act.
Addendum (Lease or HOA)
A document added to modify or supplement a contract.
Amortization
Gradual repayment of a loan over time.
Annual Budget (Operating Budget)
A yearly financial plan of expected income and expenses.
Apartment
A unit within a larger building, or a collection of units within one building.
Apartments.com
Website to search for rental properties.
AppFolio
Property management software used for accounting, maintenance, and communication.
Application
A form to collect prospective tenants' information to run background check, income verification, and credit history.
Application Policy
A set of standard requirements to be approved for a rental unit. This ensures all prospective tenants are screened in a fair and standard manner.
Appreciation
Increase in property value over time.
Architectural Review Committee (ARC)
HOA group that reviews exterior modification requests.
Architectural Review (ARC Request)
Formal submission for approval of property modifications.
Assessment (HOA Dues)
Fees charged to homeowners for community maintenance and reserves.
Asbestos
A highly heat-resistant fibrous silicate mineral that can be woven into fabrics and is used in brake linings and in fire-resistant and insulating materials.
Attachment (Lease)
Attachments are added to leases to cover special features of the property or tenant. These are legally binding as part of a lease or as a standalone document.
AutoPay
Set up to pay a bill on a set interval without added input from the payee.
Delayed maintenance that is required to fix a maintenance issue, which creates a larger-scale repair because the primary maintenance issue was not addressed in a timely manner, and damage has spread.
Depreciation
Decrease in asset value over time.
Designated Broker
A licensed individual in a real estate brokerage who is responsible for overseeing the firm's operations and ensuring compliance with legal and ethical standards.
Legal and binding contract outlining rental terms for a property.
Lease Break
A term in a lease agreement that gives one or both parties the right to terminate the lease before its fixed end date, without breaching the contract, provided certain conditions are met.
Fee for community and property management services.
Managing Broker
A licensed real estate professional who supervises agents and brokers, oversees daily operations of a brokerage, ensures legal compliance, and supports the firm's business objectives.
Market Rent
Rent based on comparable properties, in a comparable location for the given period of time searched. Market rent fluctuates based on seasonality.
A licensed professional who acts as an intermediary in the buying, selling, or leasing of real property, such as houses, buildings, and offices. They have completed additional education and licensing requirements.
Reserve Study
Long-term plans for future repairs and funding.
Rental Application
Form for screening tenants.
Rent Control
A government policy that limits how much landlords can charge for residential rent or how much they can raise it over time.
Rent Increase Notice
A formal, written notification from a landlord to a tenant that informs them of an upcoming increase in the rent or other recurring charges for the use and occupancy of their rental unit.
Return on Investment (ROI)
Measure of profitability.
RHAWA (Rental Housing Association Washington)
A nonprofit, statewide association that supports independent rental housing providers, property managers, manufactured housing community owners, and real estate investors across Washington State.