Accountant
A person who supervises the keeping of financial records pertaining to properties being managed. Generally more qualified than a bookkeeper.
Accredited Residential Manager (ARM)
A property management designation offered by the Institute of Real Estate Management (IREM).
Accredited Management Organization (AMO)
A property management designation offered by the Institute of Real Estate Management (IREM) to property management companies that meet prescribed high standards.
Agricultural Land
Land used for farming purposes including growing crops and raising livestock.
Americans with Disabilities Act (ADA)
A law passed by Congress in 1990 requiring any business or public facility to be accessible to everyone, including those with disabilities.
Americans with Disabilities Act Accessibility Guidelines (ADAAG)
A document which provides standards to be observed in the design, construction, and alteration of buildings that come under the jurisdiction of the ADA.
Annual Net Income
Also called net operating income, the amount of income left from an income -producing property after all expenses have been deducted.
Asbestos Hazard Emergency Response Act (AHERA)
A law passed by Congress in 1986 which amends the Toxic Substances Control Act (TSCA). It requires all public schools to be inspected for the presence of asbestos and to remedy the problem if it is likely to be hazardous to people's health.
Asset Manager
An executive who oversees the firm's real estate resources, setting goals and strategies with ownership interests. Also called a portfolio manager.
Assignment
Regarding a lease, a new tenant takes the place of the original tenant taking possession of the property and responsibility for the lease agreement making payments directly to the landlord.
Back-End Ratio
The ratio of all fixed debt, including housing expenses, to gross income.
Balance Sheet
A report showing the assets of a business, the liabilities, and the net worth.
Band of Investment
A method of determining the capitalization rate in which the return demanded by investment money in various positions is calculated and combined.
BPO (Business Process Outsourcing)
BPO contains the transmission of processes along with the associated operational activities and responsibilities, to a third party with at least a guaranteed equal service level and where the client contains a firm grip over the (activities of the) vendor for mutual long term success. BPO is positively related to the search for more efficient organizational designs: cost reduction, productivity growth and innovative capabilities. Hence, a source for strategic advantage.
Building Engineer
A position that inspects the structured components and the permanent systems of a building to ensure safety and compliance with all government regulations.
Business Cycle
The constant fluctuation of levels of income, employment, and the amount of goods and services produced in a given fiscal year.
Buyer's Market
A stage in the real estate market in which the ready willing and able buyer is in the minority and is in control of the market. A time of oversupply and decreased demand. Prices decline during this stage of the cycle.
By-Laws
Rules and regulations that govern the activities of a homeowner's association.
Capacity
Legitimate legal status to enter into a contract (not mentally incompetent nor under-age) one of the legal essentials of a valid contract.
Capitalization Rate
The desired rate of return on an income producing property expressed as a decimal or percentage indicating the relationship between the value and the income.
Cash Flow Statement
A report showing cash flow after distribution for various categories of expense.
CC&Rs
Covenants, conditions, and restrictions placed on certain types of real property which limit the activities of owners.
CERCLA
The Comprehensive Environmental Response Compensation and Liability Act a law passed by Congress in 1980. Establishes two trust funds to help finance the cleanup of properties that have been impacted by the release of hazardous wastes and substances. Commonly known as superfund.
Certified Apartment Maintenance Technician (CAMT)
A designation offered by the National Apartment Association (NAA).
Certified Apartment Manager (CAM)
A designation offered by the National Apartment Association (NAA).
Certified Apartment Property Supervisor (CAPS)
A designation offered by the National Apartment Association (NAA).
Certified International Property Specialist (CIPS)
A property management designation offered by FLABCI-USA.
Certified Leasing Specialist (CLS)
A designation offered by the International Council of Shopping Centers
(ICSC).
Certified Manager of Community Associations (CMCA)
A designation offered by the Community Associations Institute (CAI).
Certified Marketing Director (CMD)
A designation offered by the International Council of Shopping Centers (ICSC).
Certified Property Manager (CPM)
The most advanced property management designation offered by the Institute of Real Estate Management IREM).
Certified Shopping Center Manager (CSM)
A designation offered by the International Council of Shopping Centers (ICSC).
Commercial Property
A property where commerce is conducted such as an office building or retail shopping center.
Common Interest Developments (CIDs)
Real property developments that include common interests and shared common areas.
Community Apartment Project
One type of CID in which the owner has an undivided interest in the land with the exclusive right to occupy a particular unit.
Community Center
A retail center anchored by a small department store and supported by up to 50 smaller stores. At least 5 000 households are usually needed to support a community center.
Comparison
A method of determining the capitalization rate by looking to the operational capitalization rate of similar properties in the area.
Compliance Clause
A clause in a lease designating which party is responsible for complying with various laws.
Condition
A limiting restriction in the ownership of real property, the violation of which could cause the owner to lose title or have his or her estate modified in some way.
Condominium
A structure for either residential, industrial, or commercial use, whereby the owner owns the interior airspace of the unit plus an undivided interest in the common areas.
Consideration
Anything of value one, of the essentials of a valid contract.
Covenant
A promise or assurance set forth in a written agreement allowing or disallowing certain activities on the part of the owner.
Damage or Destruction Clause
A clause in a lease detailing how the partial or total destruction of the property would be handled between the parties to the lease.
Default Clause
A clause in a lease setting forth the lessor's remedies in the event of a default by the lessee.
Demographics
The study of statistics relating to populations, especially in the areas of demand for certain types of real estate.
Discrimination
Violating someone's right to fair housing opportunity on the basis of who they are; such as characteristics of race, color, sex, religion, familial status, marital status, disability, or national origin.
Double Net Lease
An arrangement whereby the tenant pays the rent utilities property taxes special assessments and insurance premiums.
Economic Rent Increase
An increase in rent prompted by a shrinking supply of comparable rental units in an area and the ability of tenants to afford the increase.
Economics
Related to real estate, a study of the factors that cause people to prosper and create a viable demand for real property.
Effective Gross Income
Also known as adjusted gross income the income actually collected after deducting for collection losses.
Environmental Protection Agency (EPA)
A federal agency established in 1970 to ensure the enforcement of the National Environmental Policy Act (NEPA).
Escalation Clause
A clause in a lease that allows for rent increases based on the occurrence of a certain event.
Estate
Ownership arrangements that tell the types and duration of interests that an individual has in real property.
Estate at Sufferance
A situation where a tenant has come into possession in a lawful manner but has stayed beyond the prescribed duration of the agreement hostile to the owner's wishes.
Estate at Will
A tenancy agreement that endures as long as both parties are willing. It can be terminated unilaterally.
Estate for Years
An arrangement by which the tenant takes possession on a particular date and will remain in possession until a particular date. It could be for any period of days, weeks, months, or years.
Eviction
The legal process by which the tenant is removed from the property due to violations of terms of the lease.
Express Warranty
An obligation to a tenant created by a promise made by the lessor or lessor's agent that caused the tenant to enter into the lease.
Facilities Management Administrator (FMA)
A property management designation offered by the Building Owners and Managers Institute (BOMI) with emphasis on the management of a commercial facility.
Fair Housing Laws
Laws originating in the United States Constitution ensuring all persons the fair opportunity for housing of their choice in the United States.
Fair Labor Standards Act
A law enacted during the depression regulating certain aspects of labor that the lodging industry feels is in need of revision.
FDIC
The Federal Deposit Insurance Corporation, a federal agency which insures depositors in banks and savings and loan associations to protect their deposits in case of bank failure.
FHA
The Federal Housing Administration established in 1934 to insure certain types of home loans protecting the lender and allowing a small down payment from the borrower.
Financial Analysis
A study of the property's income, producing performance, and potential.
Industrial Property
A property where products are manufactured or assembled. The conducting of industry.
Lawful Object
The purpose, object, and operation of the contract is legal, one of the essentials of a valid contract.
Lease
A written agreement by which possession of the property is transferred and the stream of income is secured.
Less Than Freehold Estates
An Estate in land that has a predetermined time span; most commonly a Leasehold.
Example: A five-year lease on land is considered a less than freehold estate.
Liability Indemnity Clause
A clause in a lease holding landlords harmless from the actions of their tenants.
Maintenance Clause
A clause in a lease designating which party is responsible for maintenance of the property beyond normal wear-and-tear.
Management Plan
A plan for future management based on financial reports and projection accepted by ownership.
Market Analysis
A study which gives an understanding of the economic factors operating in the local marketplace related to the subject property.
Market Rent
Based on a survey, what the competition is receiving in rent for similar space with similar amenities.
Market Survey
A report generated by software comparing the subject property in various categories of performance to competing properties in the area.
Mega-Center
An oversized shopping center that attracts shoppers from hundreds of miles around. Also called a super-mall.
Move-In/Move-Out Form
The form detailing inventory and initial condition of rental space and inventory and condition upon move-out.
Moratorium
A temporary prohibition against building in certain areas to control the rate of development.
Multi-Family Units
Residential structures intended to house more than one family unit, such as duplexes or apartment buildings.
Mutual Consent
A meeting of the minds, one of the essentials of a valid contract.
National Apartment Leasing Professional (NALP)
A designation offered by the National Apartment Association (NAA).
National Environmental Policy Act (NEPA)
A law passed by Congress in 1970 that requires an environmental impact statement to be prepared and released prior to any federal action that would affect the environment. This is also required by some state and local governments for private improvements.
Neighborhood Center
A retail center supported by a thousand or so households usually anchored by a grocery store and supported by a dozen or so other compatible stores.
Net Lease
An arrangement whereby the tenant pays the rental payment plus certain agreed upon expenses.
Net Operating Income
Also called net annual income, the amount of income left from an income-producing property after all expenses have been deducted.
Notice to Pay or Quit
The initial notice given to a tenant to begin the eviction process. Can be presented in three, five, seven, ten, or thirty day increments.
Operating Budget
A basic tool of the property manager to help in financial planning.
Operating Expenses
Expenditures necessary to the operation of an income-producing building that are subtracted from effective gross income to arrive at net operating income.
Paired Sales Analysis
Matching up two properties that are identical in all respects except for one variable. Determines the value of that variable in the marketplace.
Percentage Lease
An arrangement whereby the tenant pays a percentage of gross receipts and/or a minimum flat amount.
Periodic Tenancy
Tenancy from period to period such as a month-to-month tenancy.
Planned Unit Development (PUD)
A development in which each owner owns his or her own housing unit and land and has an undivided interest in common areas with other owners.
Portfolio Manager
An executive who oversees the firm's real estate resources setting goals and strategies with ownership interests. Also called an asset manager.
Professional Community Association Manager (PCAM)
An advanced designation offered by the Community Associations Institute (CAI).
Project Operating Report
A report that breaks income and expenses down into specific categories and matches them to budget objectives.
Projection
An anticipated operational income and expense statement projected into the future to aid in planning.
Property Analysis
An on-site inspection and study of the subject property so that the entire physical plant is thoroughly understood.
Property Management
The practice of real estate that manages and preserves the real property assets of another person.
Public Accommodation Property
A privately owned property where the public has certain rights, such as a hotel or office building.
Quiet Enjoyment
The right of a tenant to enjoy their property without interference provided they are in accordance with all conditions of the lease agreement. Elaborated
Real Estate Redo
A portion of the earth's surface extending downward to the center of the earth and upward infinitely into space, including all things permanently attached to it whether naturally or artificially. Also known as Real Property.
Real Estate Cycle
A fluctuation of supply and demand in real estate affected by the state of the business cycle and resulting in various levels of activity for building lending purchasing and leasing real estate. The cycle swings between the extremes of a buyer's market and a seller's market.
Real Property Manager (RPM)
A property management designation offered by the Building Owners and Managers Association (BOMA).
Regional Center
A large retail shopping center (sometimes called a mall) with half a dozen major department stores along with 100 to 200 general merchandise and specialty shops. Customers are drawn from as far as 50 miles and comprise 50 000 to 150 000 households.
Registered Property Manager (RPM)
A property management designation offered by the International Real Estate Institute (IREI).
Rent Control
A local ordinance prohibiting rent increases on certain types of property.
Residential Property
A property where people reside, including single family residences, condominiums, and apartment buildings.
Restriction
A limitation on the use of a property by the owner. May be private (as in a deed or declaration of restrictions) or public (as in zoning).
Risk Manager
A property manager who evaluates complex issue sometimes global issues-to protect the value of real estate assets.
RTC
The Resolution Trust Corporation established by the Federal Government in 1989 to help failed savings and loans liquidate real property assets.
Scheduled Gross
Income
All of the income a property is scheduled to produce.
Seller's Market
A stage in the real estate market in which demand is greater than supply-more buyers than sellers-and prices rise.
SFR
A single family residence. A house that is intended to be occupied by one family.
Single Net Lease
An arrangement whereby the tenant pays the rent plus utilities, property taxes, and any special assessments on the property.
Special Purpose Properties
Properties that are designed to meet unique purposes within a community such cell towers, parks, mobile homes, etc.
Standard Operating Procedures (SOP)
Standard procedures that are followed for efficiency whenever specified regularly occurring events take place.
Steering
Directing people to specific locations for housing accommodations depriving them of choice, a violation of Fair Housing Laws.
Step-up Lease
Sometimes called a graduated lease, usually a long-term lease with an escalation clause allowing for a rent increase based upon the occurrence of a certain event.
Stock Cooperative
A development in which a corporation is formed for the purpose of holding title to improved real property.
Strip Center
A small retail center located in the suburbs containing half-a-dozen to a dozen stores of various kinds.
Subletting
The process by which the original tenant gives up use or possession of all or part of the property but receives payment from the sub-lessee and remains fully responsible for the entire lease payment to the landlord.
Suburbs
The area within driving distance of a city's downtown.
Summation
A method of determining the capitalization rate in which various risk factors are weighted and combined.
Super-Mall
An oversized shopping center that attracts shoppers from hundreds of miles around. Also called a mega-center.
Superfund
Officially known as the Comprehensive Environmental Response Compensation and Liability Act (CERCLA) passed by Congress in 1980. Establishes two trust funds to help finance the cleanup of properties that have been impacted by the release of hazardous wastes and substances.
Supply and Demand
A basic economic principle in which the greater the supply of an item, the lower its value. When an item is scarce in relation to demand, the value is high. Applies to real estate and all commodities.
Syndicate
A group of individuals formed for the accomplishment of some business purpose such as a corporation or limited partnership.
Timeshare
A specialized type of resort property whereby owners purchase the right to occupy the space for a certain period of time during the year.
Toxic Substances Control Act (TSCA)
A law passed by Congress in 1976 which allows the EPA to determine which substances are hazardous to the health of human beings or to the environment.
Triple Net Lease
An arrangement whereby the tenant pays the rent, utilities, property taxes, special assessments, and insurance premiums; and takes responsibility for repairs and maintenance.
Unlawful Detainer Action
An action filed in court in an eviction process requiring the tenant to respond within five days.
Urbanization
The clustering of people around big city areas for work and living.
Use Clause
A clause in a lease designating which parties are authorized to use the property and for what purpose.
VA
The Veterans Administration, providing benefits to qualified veterans including the VA loan guaranteed by the VA and offering low or no down to the borrower.
Vacancy Factor
Money lost due to vacancies and other collection losses usually expressed as a percentage of scheduled gross income.
Variance Analysis
An analysis of reports provided by software programs offering explanation for variances from the budget.
Writ of Possession
A document that is executed at a default hearing authorizing the sheriff's office to evict the tenant. |
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