Glossary Of Residential Rentals
It is important to understand basic terminology of residential rentals before moving forward with leasing process. Residential rental properties consist of single family homes, apartments, townhouses, duplexes, condominium units etc.
Following is a list of terminology commonly used for residential rentals:
- Application: This refers to an application form that is filled by a prospective renter who is interested in signing a lease for a property. The application includes contact information and other necessary details of the renter.
- Assignment Of Lease: A process in which a current renter assigns the lease to some other qualified person due to his incapability to fulfill certain lease obligations subject to property owner’s or property manager’s permission.
- Background Check: The property manager conducts an inquiry into an applicant’s rental history, criminal history, employment, income and more before signing a lease agreement.
- Breach: The term is used when either party breaks the terms of the lease agreement. If a renter is responsible for the breach, he may be bound to provide financial compensation to the property owner for the same.
- Fixed Term Lease: Such a lease specifies the duration for which the lease will last i.e. a fixed date or a number of weeks, months or years.
- Fair Housing Laws: Laws that protect minority and underrepresented groups from discrimination when renting a property.
- Lease Agreement: A written agreement stating the rules and requirements for renting a property.
- Lessee: A renter who enters into a lease agreement with the property owner.
- Lessor: The person who is leasing the property to the lessee.
- Periodic Term Lease: A type of lease which renews automatically every week, month or year. If any party wants to end the lease, it has to give proper notice as stated in the lease agreement.
- Renters Insurance: Insurance coverage purchased by renters for protection against losses to personal belongings by fire, natural disasters or other covered perils.
- Renewal Option: A right to renew a lease for a new term or multiple terms after the initial lease expires.
- Security Deposit: Money deposited by a renter with the property owner on moving into the new rental unit.
- Sublease: An act whereby a renter is allowed to rent a part of the rental property to another renter with the consent of the property owner.