Glossary

Applicant: A prospective tenant who has submitted an application to rent a property. Applicants are typically evaluated using established screening criteria such as income, credit history, rental history, employment, and background information.

Application Fee: A fee charged to a prospective tenant when applying for a rental property. It may help cover the cost of credit checks, background screening, and other application-processing expenses.

Background Check: A screening process used to review certain aspects of a rental applicant’s history. Depending on the screening process and applicable laws, this may include criminal records, eviction history, identity verification, and other relevant information.

Cash Flow: The amount of money remaining from a rental property after income and operating expenses are taken into account. Positive cash flow means the property generates more income than it costs to operate during the measured period.

Comparable Rental: A rental property with similar characteristics that can be used to estimate the appropriate rent for another property. Comparables may be evaluated based on location, property type, size, bedrooms, bathrooms, amenities, condition, and other factors.

Condition Report: A written and often photographic record documenting the condition of a rental property at a specific point in time. Condition reports are commonly completed during move-in, move-out, and property inspections.

Credit Check: A review of a rental applicant’s credit history as part of the tenant-screening process. It can help provide information about payment history, outstanding obligations, and overall credit behavior.

Delinquent Rent: Rent that has not been paid by the date required under the lease agreement. Delinquent rent may be subject to late fees or other remedies permitted by the lease and applicable law.

Eviction: The legal process used to remove a tenant from a rental property when legally permitted, such as for nonpayment of rent or certain lease violations. Evictions must be handled in accordance with applicable South Carolina landlord-tenant law and court procedures.

Fair Housing: Federal and applicable state laws that prohibit unlawful discrimination in housing. Property owners and managers should use consistent rental policies and screening standards that comply with Fair Housing requirements.

Financial Reporting: Statements and records that help a property owner understand the financial performance of a rental. These may include income, maintenance expenses, management fees, owner distributions, and other property-related financial activity.

Gross Rental Income: The total rental income generated by a property before expenses are deducted.

Holding Deposit: A payment that may be used in some rental transactions to temporarily reserve a property for an approved applicant. The terms governing the payment should clearly explain whether and under what circumstances it is refundable.

Lease: A legally binding agreement between a landlord and tenant establishing the terms of the tenancy. A lease commonly addresses rent, lease duration, deposits, occupancy, maintenance responsibilities, pets, rules, and other conditions.

Lease Enforcement: The process of ensuring tenants and property owners follow the terms established in the lease agreement. Examples can include enforcing payment requirements, occupancy rules, property-care standards, and other contractual obligations.

Lease Renewal: An agreement allowing a tenant to continue renting the property after the current lease term ends. A renewal may keep existing terms, modify certain terms, or establish a new rental rate.

Lease Term: The period of time covered by a rental agreement, such as 12 months. The lease term identifies when the tenancy begins and when the agreement is scheduled to expire.

Leasing Fee: A fee that may be charged for services associated with finding and placing a new tenant. Depending on the property management agreement, this can include marketing, showings, screening, lease preparation, and move-in coordination.

Listing Syndication: The process of distributing a rental listing across multiple rental-search websites and platforms. This helps increase the property’s visibility to prospective tenants.

Long-Term Rental: A residential property generally leased for an extended period rather than by the night or for short vacation stays. Many long-term residential leases are structured around annual or multi-month rental terms.

Maintenance Coordination: The process of receiving maintenance requests, communicating with tenants, scheduling vendors, monitoring repairs, and documenting completed work. Professional property management companies may handle routine and emergency maintenance coordination on behalf of property owners.

Maintenance Request: A notification from a tenant concerning a repair, service issue, safety concern, or property condition requiring attention.

Management Fee: A fee paid by a property owner to a property management company for managing the rental. The services included can vary but may involve rent collection, tenant communication, maintenance coordination, reporting, inspections, and other day-to-day responsibilities.

Market Rent: The rental amount a property is likely to command under current market conditions. Market rent is typically estimated by reviewing comparable properties, location, condition, demand, amenities, and competing rental inventory.

Move-In Inspection: An inspection completed around the beginning of a tenancy to document the property’s condition. Photos and written notes can help establish a clear baseline for future comparison.

Move-Out Inspection: An inspection completed after or around the time a tenant vacates the property. It is used to compare the property’s condition with move-in documentation and identify any damage or maintenance needs.

Net Operating Income: A property’s income after normal operating expenses are deducted, but before certain financing and tax expenses are considered. Investors often use net operating income to evaluate rental-property performance.

Normal Wear and Tear: Deterioration that occurs from ordinary, expected use of a rental property over time. This is different from damage caused by abuse, negligence, misuse, or other abnormal conditions.

Occupancy: The status of a rental property when it is currently leased and occupied by a tenant.

Occupancy Rate: The percentage of time or units within a rental portfolio that are occupied during a given period. A higher occupancy rate generally means less income is being lost to vacancy.

Owner Distribution: Money transferred to the property owner after rental income is collected and applicable expenses or reserves are accounted for.

Owner Portal: An online system that allows property owners to access information related to their rental property. This may include financial statements, maintenance records, lease documents, inspection information, and other property-management records.

Pet Deposit: A deposit associated with allowing an approved pet in a rental property. The specific terms, amount, and treatment of pet-related charges should be clearly addressed in the lease and handled in accordance with applicable law.

Pet Fee: A fee charged in connection with an approved pet. Unlike a refundable deposit, a pet fee may be structured as nonrefundable depending on the lease and applicable law.

Preventive Maintenance: Routine maintenance performed to reduce the likelihood of future breakdowns or larger repairs. Examples can include HVAC servicing, gutter cleaning, inspections, and addressing small leaks before they cause more extensive damage.

Property Inspection: A scheduled review of a rental property’s condition. Inspections can help identify maintenance concerns, confirm the property is being cared for, and create documentation during the lease term.

Property Management: The professional operation and oversight of a rental property on behalf of its owner. Services can include marketing, tenant placement, rent collection, maintenance, inspections, lease administration, financial reporting, renewals, and other daily management responsibilities.

Property Manager: A person or company hired to manage rental property on behalf of an owner. The property manager serves as a point of coordination between the owner, tenants, vendors, and other parties involved in operating the rental.

Prorated Rent: A partial rent amount calculated when a tenant occupies a property for only part of a normal rental period, such as moving in midway through a month.

Qualified Tenant: An applicant who meets the property’s established rental criteria. Criteria may include income, rental history, credit standards, background screening, and other lawful qualification requirements.

Rent Collection: The process of receiving, recording, and processing tenant rent payments. Professional property management systems often allow tenants to pay electronically and help owners track payment activity.

Rent-Ready: A property condition indicating that a rental is prepared to be marketed or occupied. A rent-ready property is typically clean, safe, functional, repaired, and prepared for a new tenant.

Rental Analysis: An evaluation used to estimate a property’s potential rental rate and market position. It may consider comparable rentals, property condition, size, location, amenities, and current local demand.

Rental Criteria: The written standards used to determine whether an applicant qualifies for a rental property. Consistent rental criteria can help make tenant-screening decisions more objective and uniform.

Rental Listing: An advertisement for an available rental property. A listing usually includes photos, monthly rent, property features, location information, lease requirements, and instructions for prospective tenants.

Rental Market Analysis: A detailed review of current market conditions used to determine an appropriate rental price. It may consider competing properties, recent comparable rentals, location, property condition, amenities, and local rental demand.

Rental Property: Residential real estate that is leased to a tenant in exchange for rent.

Resident: Another term commonly used for a tenant who currently occupies a rental property.

Security Deposit: Money collected from a tenant and held to help cover certain obligations permitted by the lease and applicable law, such as unpaid rent or qualifying property damage. Security deposits should be handled and returned in accordance with South Carolina requirements.

Showing: An appointment in which a prospective tenant is given the opportunity to view an available rental property.

Single-Family Rental: A detached residential home that is rented to a tenant or household. Single-family homes make up a significant portion of many residential property-management portfolios.

Tenant: A person who rents and occupies a property under a lease or rental agreement.

Tenant Placement: The process of finding and placing a qualified tenant into a rental property. It commonly involves marketing, inquiries, showings, applications, screening, lease preparation, and move-in coordination.

Tenant Retention: The ability to keep qualified tenants in a rental property through lease renewals. Strong tenant retention can help reduce vacancy, turnover expenses, marketing costs, and make-ready work.

Tenant Screening: The process of evaluating prospective tenants using established rental criteria. Screening can include credit checks, background checks, employment and income verification, rental-history verification, and other lawful screening methods.

Turnover: The period and process between one tenant moving out and another tenant moving in. Turnover may involve inspections, repairs, cleaning, painting, marketing, showings, screening, and lease preparation.

Turnover Cost: The expenses associated with replacing a tenant. These can include lost rent, repairs, cleaning, marketing, leasing expenses, and property preparation.

Vacancy: A period when a rental property does not have a paying tenant.

Vacancy Rate: The percentage of rental units or rental time that remains unoccupied during a specific period. For example, a portfolio with 100 rental units and five vacant units would have a 5% vacancy rate at that point in time.

Vacancy Loss: Rental income that could have been earned if a vacant property had been occupied by a paying tenant.

Vendor: A contractor, technician, tradesperson, or service company used to perform maintenance or repairs at a rental property.

Vendor Management: The process of selecting, scheduling, communicating with, and monitoring contractors and service providers working on rental properties.

Year-End Tax Documentation: Financial documents prepared after the end of the calendar year to help property owners organize rental-property income and expense information for tax reporting.