Are you purchasing an investment property? If you are new to the industry here are some helpful terms you should know!
This term describes a tenant’s conduct when it appears as though they intend to forfeit their right to live in the property. Example: No one has seen him in weeks and all personal belongings are gone.
These are both intangible and tangible features that enhance the desirability or value of the property. Examples: Good schools, close to shops and restaurants, pool, security system, etc.
This means that a home adheres to the current market rates and standards of housing in its area.
This is what you call the second person to sign a mortgage or a lease. The co-signer verifies the identity of the first signer and also provides an extra level of certainty to the document, as they can also be responsible for it.
Eviction is a court-based process through which a landlord may remove a tenant from rental property; however, only with a good cause and after due process.
Fair Housing Act
This Federal law stops discrimination in housing on the basis of race, age, color, handicap, sex, religion, national origin, and familial status.
A fixture is something the owner or tenant installs in the rental property that cannot be removed when he leaves. An example could be a backyard deck or built-in cabinets.
A lease is the written agreement between the landlord and the tenant. It grants the tenant the right to live in the landlord’s unit for a specific amount of time in exchange for a specific amount of money.
A lease option is when a tenant has the option to buy the property he is currently leasing. This can happen when his original lease expires or at another time during the lease.
Property Management Agreement
This is the agreement between the landlord and the company that looks after his properties for him. It should detail the specifics of how to manage the property and all the fees involved.
You will typically find rent-controlled buildings in urban areas. Rent-control laws restrict how much rent landlords can charge their tenants. However, most laws do allow for annual rent increases.
Rent to Own
Similar to a lease option, a rent to own property allows the tenant to have access to the option to purchase the property he is currently renting.
Right of Entry
This is the name for how often a landlord can be permitted to enter the property. There are several situations in which landlords can have the right of entry: emergencies, to show the unit to a prospective tenant, inspections or make repairs. In most cases, advanced notice it also required.
This is when a tenant leases his unit to another tenant. This sometimes occurs when a tenant will be traveling for an extended period of time, like a college student who is away on summer vacation. Landlords do not have to allow their tenants to sublet the space. Landlords should always note whether or not tenants can facilitate subleases in the original contract.
A tenant is the person who can live in a landlord’s unit for a specific amount of time. He can only also live there for a specific amount of money. These terms are always set out in the original lease.
This is a clause in the lease that says whether or not a tenant can make improvements to the property while he rents it. It should explain exactly what kinds of improvements are allowed and if the tenant will be compensated for them. Example: Paint, Changing light fixtures, adding landscaping and other minor cosmetic upgrades.
Term of the Lease
These are the particulars of the lease that state how long the lease will last.
Are you considering purchasing an investment property and these terms overwhelmed you? No need to worry, we are here to help. At All County Property Management we are your source for all your property management needs. We give you the ability to be hands off and still receive the residual income that your investment property will provide for you! We cover everything from tenant screening, maintenance needs, marketing and so much more!
Give us a call today so we can show you why All County Property Management Group is the right choice for your property management needs.