Learning the Jargon of Property Management

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.