Your Landlord Guide to Important Rental Property Terms and Words

Are you looking for a complete landlord guide that help you understand the alien language that rental property owners seem to talk in? Learn all the important terms that every landlord should know with this simple English landlord guide.

1031 Exchange - Refers to the section 1031 of the U.S. revenue code. What makes it important is that it allows you to avoid paying capital gains taxes when selling your rental property if you use the money to buy another like-kind property.

Capital Gains Tax - The taxes you have to pay if you sell your rental property for a profit. Some countries do not require landlords to pay capital gains taxes.

Eviction - The legal process that rental property owners use to remove nightmare tenants who don't pay rent or break the terms of their rental agreement. As this can be a costly and messy process, it's highly recommended that you look for a landlord guide to do it property.

Fixed Term Tenancy - A popular type of rental agreement where there is a fixed starting and ending date.

Landlord Liability Insurance - Insurance that protects you in case you are being sued by your tenant for injury or losses. This insurance will cover your legal costs and any claims that are made by your tenant.

Notice to Quit - This is a written note that is commonly given to tenants in advance to end a periodic tenancy. Before you can file an eviction lawsuit, you will also have to give your tenant a written notice to quit as a final warning.

Occupant - An occupant is someone who is legally allowed to stay on your rental property as stated in your lease agreement. He is different from a tenant in that he is not responsible for paying you rent. An example of an occupant will be your tenant's children.

Periodic Tenancy - Another common type of lease that is renewed from one time period to another instead of having a fixed end date. A periodic tenancy can be week to week, month to month or year to year.

Section 8 Program - Also known as a housing choice voucher program. This is a U.S. government housing program that helps people with low income by paying 60 to 70% of their rent. As there are many rules regarding this program, read your section 8 landlord guide before accepting a section 8 tenant.

Squatter - Someone who is illegally living on your rental property. This usually happens when your tenant invites someone to stay over for a long time without your permission.

Subtenant - When your tenant re-rents your rental property to someone else, that person is known as your subtenant. In most cases, you will have little control over your subtenant so it is recommended that you do not allow them.

Surrender of Tenancy - When both the landlord and tenant agree to mutually end their rental agreement, the process is called a surrender of tenancy.

Tenancy at Sufferance - If the time period for your lease is over and the tenant continues living on your rental property without your permission, he will be known as a tenant at sufferance. In most cases, he has to continue paying you rent and you can file an eviction lawsuit to remove him.

Tenancy at Will - This is a more informal type of lease where there is no proper written rental agreement. It is commonly a verbal arrangement preferred by landlords who need temporary tenants.

Tenancy for Years - This is another name for a fixed term tenancy. For the full explanation, look for "fixed term tenancy" above.

Teo Zhenjie has been showing landlords how to manage their tenants and rental properties effectively on Propertydo Landlord Guide. Visit his website for step-by-step real estate guides, free resources and forms.