Learning the Jargon of Property Management

Property management can sometimes be confusing, especially with people tossing around words and phrases you're unfamiliar with. We've rounded up a few of the more common terms you'll encounter, so you'll understand their use in any context when it comes to handling your property.

Property Management Terms You Need to Know

Acceptance fee: Some lenders charge a fee to give you a mortgage, this is your acceptance fee.

Bridging loan: A bridging loan is a temporary property loan when the borrower is between selling their old home and buying a new one.

Common areas: Property that is shared by all the tenants in an apartment or owners of a condo.

Deposits: A deposit is an amount of money that is put forth in earnest to hold a property or to help defray costs when the tenant moves out.

Equity: The equity in a home is typically the value of the property minus the remaining mortgage.

Fixed rate interest: A predefined interest rate charged for the full term of the loan.

House rules: A set of rules that must be maintained by residents.

Interest only mortgage: The interest only mortgage lets you pay only the interest during the loan and at the end of it you owe the principal.

Lease: The legal document that binds landlord and tenant together in regard to the rental property.

Management company: A group that functions as head of a property in place of the owner, handling or delegating all of the day to day responsibilities.

Negative equity: When a home owner owes more on their home mortgage than the home?s value.

Unit: Each individual living space within a multifamily dwelling.