renter terms

Rent Glossary: 50 Rental Terms You Need to Know

From duplexes, walk-ups and kitchenettes to half-baths, soft lofts and shotguns, there are plenty of rental terms that describe apartment rentals that can make your head spin. Throw in the legal and professional jargon within the lease and surrounding your agreement terms, and you may get even more confused.

Rental terms you should understand

So, how do you know what all the rental terms mean? Fear not. We’ve put together a list of 50 common rental terms and lease terminology for you to reference when searching for your next apartment.

1. Abatement

An abatement is a lease clause stating that if your apartment is damaged or under repair (not by you or someone in your care’s fault or from a disaster, also known as force majeure), your landlord will allow you to suspend your lease and not charge you rent while the apartment is uninhabitable and you’re living elsewhere.

2. Accessible

An accessible apartment is an apartment that’s able to be reached and occupied by a person with a physical disability. For a wheelchair user or person with mobility difficulty, this often includes lease — or government-specified items — like ramps, larger doors, adapted bathrooms, lowered light switches, wide hallways and elevator access.

For people with hearing impairments, this might include doorbell and smoke alarm lamp signalers or bed shakers. For people with visual impairments, handrails and special lighting might be included.

As a tenant, your lease may specify that you’re accountable for keeping areas where wheelchairs may go free of items, such as bicycles and trash cans, that can block the path or doorway.

rental application

3. Application

A document a potential tenant fills out so a landlord can decide if they’re qualified to rent the apartment. In addition to basic information, such as your workplace, Social Security number and previous addresses, you may have to provide items, such as pay stubs, bank statements, references and recommendations.

4. Arrears

When you’re behind in your payments — whether you’re late with rent or have a past-due utility bill — your finances are in arrears.

5. As-is condition

The tenant agrees to rent the apartment in exactly the condition that it’s currently in. This includes accepting any defects, flaws and repairs needed and agreeing that you’ll rent the space as-is.

6. Boarder

A resident in your apartment that’s not on the lease and is not subletting, but is paying a stipend to dwell there. A boarder is usually not responsible for utilities and often has meals provided for them by the tenant.

They also don’t have to go through a formal eviction process if you wish to remove them, as they have limited legal occupancy rights.

7. Broker

A broker is a professional agent who works on commission and helps negotiate lease agreements between the landlord and the renter. Most states require a license to do this.

8. Building code

A set of rules and standards set by the local government that dictates things like safety standards, design requirements and improvements on how buildings are constructed and maintained.

9. Certificate of occupancy

A certificate that verifies the spaces available for rent have been inspected, approved for occupancy and deemed as a quality place to live.

10. Clubhouse

A building that’s a shared space on a rental property. Clubhouses usually have office space, tables, couches, TVs, games and other entertainment options available for common use. Everyone in the rental property can access the clubhouse.

rental terms common area

11. Common area

Areas of the apartment complex — such as the gym, laundry rooms, clubhouse and outdoor spaces — that are for common use. Every renter in the complex is allowed to use the common area.

12. Co-signer

A secondary (or more) signer of your lease who won’t be residing in the apartment, a co-signer is usually needed when the tenant has a short or poor rental or credit history and requires someone (usually a parent or employer) to vouch for them.

This secondary person is equally responsible for upholding the terms of the lease as backup if you can’t.

13. Co-tenant

Co-tenants are two (or more) people who sign the lease with the intent that both or all will occupy the apartment and be equally responsible for rent and other lease provisions. Co-tenants have equal and shared accountability and legal rights under the agreement.

14. Credit history

A public record of how you’ve managed your credit and debt in your past, including credit cards, loans and other leases. A potential landlord can request this from the credit bureaus to ensure you’ll be able to pay your lease and have a history of paying your debts before deciding to rent to you.

eviction

15. Eviction

The formal process where your landlord terminates your lease and asks you to vacate your apartment in a period of time decided by local laws and statutes. You can be removed from your apartment for failure to pay rent or breaking the other terms of your lease.

16. First refusal right

The right of an existing tenant to have the first option to re-lease a unit at the same rent price or under the same conditions before the space is publicly available for other people to rent or lease.

17. Fixed-term lease

A fixed-term lease specifies a set period of time, usually 12 months, that a tenant agrees to rent the apartment. This is different from a month-to-month lease under which a tenant can pay each month and decide whether or not to stay the following month. In a fixed-term lease, the tenant is required to fulfill the time period outlined in the lease before moving out.

18. Guarantor

Similar to a co-signer, a guarantor is a third party who “guarantees” you’ll pay your rent and fulfill your financial obligations as a renter. However, a guarantor can’t live in the apartment, even if they’re on the lease itself.

19. Guest

A temporary visitor to your apartment who does not reside there, including your or your roommate’s significant other who sleeps over often. While someone visits you, they’re required to abide by the terms of your lease, as well, such as quiet hours, behavior or parking restrictions.

20. HVAC

An acronym for heating, ventilation and air conditioning.

21. Kitty

A combined fund between apartment co-tenants for non-rent financial responsibilities, such as groceries, cleaning supplies and utilities. Usually, all parties agree to contribute equally to the kitty rather than on a per-use or amortized basis.

22. Landlord

This is a rental term you’ve problably heard of. The landlord is the owner of your property, or an agent of the owner, who leases out the apartment. They’re responsible for their end of the lease, and are liable for structural maintenance of the apartment as outlined in the lease. They’re also the ones that can evict you for breaking your rental agreement.

rental terms lease

23. Lease

A residential tenancy agreement, a contract between you (and your co-tenants) and the landlord or owner. This is where the amount of the rent, lease term, rules, regulations and your and your landlord’s responsibilities for the apartment are outlined in exchange for letting you live in the unit. Nearly every lease is a written contract — a lease can even be an oral agreement.

24. Lease commencement date

The date that the lease officially starts and the renter has access to move into the facility. This does not mean the renter has to move in on this date.

25. Lessee/lessor

The lessee is the tenant, or lease-holder, and the lessor is the landlord or owner who provides the lease to you.

26. Lien

The right of a landlord to keep possession of a renters property until a debt has been paid.

27. Mediation

This is a formal (and often legal) arbitration with an impartial third party employed to resolve disagreements between you and your landlord. Your lease may spell out conditions as to when mediation may be engaged and who will do the mediating.

28. Mixed-use zoning

An apartment complex that’s mixed-use zoning will include residential and/or retail and office space. Parts of the building will be rental and living spaces while the other parts of the building will have commercial spaces. Usually, the ground level is retail/office while the higher levels are residential.

month to month

29. Month-to-month

A rental agreement that’s automatically renewed at the end of each month (as opposed to the end of the year or some other length) until ended by either party under the terms of the lease within a certain window of time.

30. Notice to quit

A formal notice given to a tenant by the landlord stating they intend to end the lease and begin eviction. It will often state some cause that can be corrected, such as paying back owed rent or removing an illegal boarder, by a certain date to resolve the violation.

31. Notice to vacate

A formal notice given to the landlord by a tenant stating they intend to end occupancy of the premises and not renew the lease. Your lease will usually state a window during which you can do this without penalty.

32. Parking ratio

The number of parking spaces available per unit or per tenant.

33. Pet deposit

A pet deposit is usually a one-time fee required by the rental complex that allows a pet to live on the premises. If the pet damages the apartment or parts of the complex, this fee covers the repairs. This rental term is different than a pet fee, which may be an additional charge on your monthly rent.

34. Profiling

An illegal discriminatory practice and pattern of refusing to rent to or rejecting a potential tenant based on their race or ethnicity or another protected status, such as disability or religion, often through deceptive or surreptitious means.

35. Prorated

The amount of rent charged to a tenant when the first or last month of a lease is less than a full month. If you move in the middle of the month, the landlord will often only charge you for the percentage of the month you actually occupied the unit.

rental terms quiet enjoyment

36. Quiet enjoyment

A term often found in leases meaning you have an inherent right to peaceful and pleasurable use of your apartment within accepted standards. For example, this protects your basic rights to not have your landlord knocking on your door every day to bug you or having the lawn mowed at four in the morning.

37. Renewal

The option the tenant has to continue living in the apartment after the initial term of the lease is over. There’s often a choice of renewing for the original term or converting to month-to-month.

38. Rent

An amount of money you and your landlord have agreed on in your lease for you to pay on a regular and constant recurring basis (usually monthly) in exchange for living in the apartment.

39. Rent control

Rent control is a legal price limit that some communities in California, New York, New Jersey, Maryland and Washington, D.C., have set that restricts the amount of rent a landlord can charge.

It’s in this way that some cities, most famously New York City (think “Friends”), have inexpensive apartments that would normally be exorbitantly priced, although many are occupied by tenants that have lived there for decades.

40. Roommate

It’s simply someone who shares a room or apartment with you. There’s no legal definition of roommate, and it could describe co-tenants, you and a boarder, you and a sub-letter or you and your significant other.

41. Screening

This is when a potential landlord runs a background check on your criminal, credit or rental history in order to discern if you have the right financial and legal background to pass muster as a qualified tenant.

security deposit

42. Security deposit

A security deposit is the extra sum of money you provide to your landlord upon signing the lease or moving in that proactively covers any damage you might do to your apartment or rent you don’t pay during the term of your lease. Your landlord holds this money in escrow until you vacate the apartment.

Upon move-out, your landlord will assess the condition of your apartment and refund your deposit less any money he or she decides to charge for damage or repair beyond normal wear and tear. Many landlords, however, are moving to a cheaper and more flexible insurance-based system.

43. Step-up lease

A lease agreement where rent prices will increase or “step-up” at specified periods of time throughout the course of the lease.

44. Sublease

When a renter rents out part or all of an apartment to another person. You can rent out a single extra bedroom in your apartment or the entire place (either for a profit or because you’ll be away for an extended period).

But you can’t sublet your apartment without your landlord’s permission and you, as the primary lease-holder, are ultimately responsible for the rent getting to your landlord and for any actions or damage caused by your sub-letter.

45. Tenant

A person who enters into a lease and pays rent to occupy a space in an apartment or rental unit owned by another entity or person. A sub-letter or boarder is not a legal tenant.

46. Term

The amount of time specified on your lease during which you’ll occupy the apartment and pay rent. This is usually a year but can be nearly any timeframe or even open-ended.

47. Termination

Any situation in which either party to the rental agreement — you or the landlord — decides to end the agreement for whatever reason. Eviction, non-renewal and vacating for cause by either side are all types of rental agreement termination.

rental terms utilities

48. Utilities

The other expenses in your apartment for which you’re responsible that are billed on a consistent and recurring basis, sometimes depending on usage. Utilities can include cable, heat, water, electricity, internet, garbage removal, storage, parking, natural gas, rental insurance, grill propane and sewer.

Some of these costs may be included in your rent. For those that are not, these are bills that are usually split equally between roommates, should you have them.

49. Vacancy rate

The number of vacant apartment units compared to the total number of units available for rent.

50. Wear and tear

A term found in most leases that describes the acceptable amount of damage that does not trigger a monetary penalty deducted from your security deposit upon vacating the apartment. This takes the burden of responsibility away from the tenant for normal, unavoidable usage deterioration.

Repainting and carpet cleaning, as well as damage such as chips, scuffs and small scratches on cabinets usually fall under acceptable or normal wear and tear.

Knowing rental terms before you sign up

Understanding rental terms is important when looking for an apartment, so you can sign a lease with confidence — and fully enjoy your new place.

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