Reference · 2026
Landlord Glossary — Property Management Terms Explained
Clear, plain-English definitions of the terms every independent landlord needs to know — from AB 1482 to vacancy rates.
California Compliance
AB 1482 (Tenant Protection Act)
- California statewide rent cap law limiting annual increases to 5% + local CPI (max 10%). Covers most residential properties built before 2005. Includes just cause eviction protections for tenants who have occupied the unit for 12+ months. Read our AB 1482 compliance guide →
Rent Control
- Local ordinances that cap rent increases below state limits. Cities include Los Angeles, San Francisco, Oakland, Berkeley, San Jose, Sacramento, Santa Monica, West Hollywood, and others. Each city has its own rules, allowable increase formulas, and registration requirements.
Just Cause Eviction
- Legal requirement that landlords can only terminate a tenancy for specific reasons (non-payment, lease violation, owner move-in, etc.). Required by AB 1482 and many local ordinances. Divided into “at-fault” causes (tenant behavior) and “no-fault” causes (landlord needs).
CPI (Consumer Price Index)
- Regional inflation measure used to calculate maximum allowable rent increases under AB 1482. Published annually by the Bureau of Labor Statistics for each California metro area. The relevant CPI is the April-to-April change for your region.
Costa-Hawkins Act
- California law that exempts single-family homes and condos from local rent control (with exceptions) and guarantees vacancy decontrol — the ability to reset rent to market rate between tenancies. Does not exempt properties from AB 1482 state rent caps.
Habitability
- Legal requirement that rental units meet minimum standards for health and safety. Includes working plumbing, heating, electrical, weatherproofing, and pest control. Breach can trigger rent withholding or “repair and deduct” remedies under California Civil Code §1941-1942.5. See our maintenance guides →
Security Deposit
- Refundable payment (max 1 month’s rent as of July 2024 per AB 12) held by landlord. Must be returned within 21 days of move-out with an itemized statement of deductions. Allowable deductions include unpaid rent, cleaning beyond normal wear, and repair of tenant-caused damage.
Relocation Assistance
- Payment required to tenants displaced by no-fault evictions under AB 1482. Equal to one month’s rent. Required for owner move-in, substantial renovation, and withdrawal from the rental market (Ellis Act). Must be paid before the tenant vacates or waived from last month’s rent.
Lease & Tenancy
Lease Agreement
- Written contract between landlord and tenant specifying rent amount, term, rules, and responsibilities. Can be fixed-term (typically 12 months) or month-to-month. In California, leases longer than one year must be in writing to be enforceable. Set up leases in LeaseBase →
Month-to-Month Tenancy
- Rental arrangement with no fixed end date, renewed automatically each month. Either party can terminate with proper notice (30 days if under 1 year of tenancy, 60 days if over 1 year). Subject to AB 1482 just cause requirements after 12 months of occupancy.
Rent Roll
- Summary of all rental income across a portfolio. Lists each unit, tenant, lease term, rent amount, and payment status. Used for financial reporting, property valuation, and lender underwriting. LeaseBase generates this automatically from your lease data.
Late Fee
- Charge assessed when rent is received after the grace period (typically 3–5 days). California has no statutory cap but courts require fees be “reasonable” (typically 5–10% of rent). Must be specified in the lease agreement to be enforceable. How late fees work in LeaseBase →
Lease Renewal
- Process of extending a lease beyond its original term. Can be automatic (month-to-month conversion) or require a new agreement with updated terms. Rent increases at renewal must comply with AB 1482 caps for covered properties.
Vacancy Rate
- Percentage of unoccupied units in a portfolio or market. National average is approximately 6%. High vacancy signals pricing issues or market softness; low vacancy indicates room for rent increases at turnover.
Financial
CAP Rate (Capitalization Rate)
- Property valuation metric calculated as Net Operating Income divided by Property Value. Higher cap rate indicates higher return but potentially higher risk. Typical residential range is 4–8%. Used to compare investment opportunities and assess market pricing.
NOI (Net Operating Income)
- Annual rental income minus operating expenses (not including mortgage payments or depreciation). Key metric for property valuation and investment analysis. Operating expenses include taxes, insurance, maintenance, management fees, and vacancy loss.
Cash-on-Cash Return
- Annual pre-tax cash flow divided by total cash invested. Measures actual return on your out-of-pocket investment including the effects of leverage. Target range for residential rental properties is 8–12%.
Autopay
- Automated recurring rent payment from tenant’s bank account. Reduces late payments by 85%+ and eliminates manual collection. LeaseBase supports ACH autopay at all plan tiers with no additional fees to tenants. Learn about autopay →
ACH (Automated Clearing House)
- Electronic bank-to-bank transfer system used for rent payments. Lower fees than credit cards (typically $0–2 per transaction). Standard processing takes 3–5 business days. LeaseBase uses ACH for rent collection with instant bank verification. How payments work →
Maintenance
Work Order
- Formal record of a maintenance request from submission through resolution. Tracks description, priority, assigned vendor, costs, timeline, and tenant communication. Creates an audit trail for habitability compliance. See the maintenance workflow →
Preventive Maintenance
- Scheduled upkeep performed before problems occur (HVAC servicing, gutter cleaning, pest inspection). Extends equipment life and prevents expensive emergency repairs. A well-maintained property reduces tenant turnover and protects property value.
Vendor
- Licensed contractor or service provider who performs maintenance and repairs. Managed through a vendor directory with contact info, specialties, insurance verification, and performance history. LeaseBase includes a full vendor portal for assignment, quotes, and progress tracking. Vendor portal guide →
Turn / Turnover
- Process of preparing a unit for a new tenant after move-out. Includes cleaning, repairs, painting, and inspection. Average cost ranges from $2,000–$5,000 depending on unit condition. Average timeline is 2–4 weeks. Minimizing turn time directly reduces vacancy loss.
Property Management
Self-Managing Landlord
- Property owner who handles operations directly without hiring a property management company. Typically manages 1–75 units. Saves 8–12% of gross rent in PM fees. LeaseBase is built specifically for this audience. See what a PM really costs →
Property Management Company (PMC)
- Third-party firm that manages properties for owners. Charges 8–12% of collected rent plus leasing fees, maintenance markups, and miscellaneous charges. Best suited for remote owners or very large portfolios (50+ units) where hands-off management is the priority.
Tenant Screening
- Background check process before approving rental applications. Includes credit check, criminal history, eviction records, income verification (typically 3x rent), and landlord references. Must comply with Fair Housing laws and California’s restrictions on criminal history use in screening decisions.
Fair Housing
- Federal, state, and local laws prohibiting discrimination in housing based on protected classes. Federal protections cover race, color, religion, sex, national origin, disability, and familial status. California adds additional protections for source of income, sexual orientation, gender identity, marital status, and more.
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