Property Management Cheat Sheet

The core ideas of Property Management distilled into a single, scannable reference — perfect for review or quick lookup.

PiqCue — piqcue.com/property-management/cheatsheet

Quick Reference

Tenant Screening

The process of evaluating prospective tenants through background checks, credit reports, employment verification, and rental history to minimize the risk of non-payment, property damage, or lease violations.

Lease Agreement

A legally binding contract between a landlord and tenant that specifies the terms and conditions of the rental arrangement, including rent amount, duration, security deposit, maintenance responsibilities, and rules governing the use of the property.

Net Operating Income (NOI)

A key financial metric calculated by subtracting all operating expenses from gross rental income, excluding mortgage payments and capital expenditures. NOI measures a property's profitability from operations alone.

Capitalization Rate

The ratio of a property's net operating income to its current market value, expressed as a percentage. It is used to estimate the potential return on a real estate investment and to compare properties across markets.

Preventive Maintenance

A proactive approach to property upkeep that involves regularly scheduled inspections, servicing, and repairs to prevent equipment failures, extend asset life, and avoid costly emergency repairs.

Fair Housing Compliance

Adherence to federal, state, and local laws that prohibit discrimination in housing based on protected classes such as race, color, religion, national origin, sex, familial status, and disability. Property managers must ensure marketing, screening, and leasing practices are non-discriminatory.

Vacancy Rate

The percentage of all available units in a rental property that are unoccupied at a given time. It is a critical performance indicator that directly impacts revenue and reflects tenant retention effectiveness and market conditions.

Security Deposit Management

The handling of refundable funds collected from tenants at lease signing, governed by state laws that dictate maximum amounts, allowable deductions, holding requirements, and timelines for return after move-out.

Capital Expenditure (CapEx)

Major, non-recurring investments in a property that improve its value, extend its useful life, or adapt it to new uses. Unlike routine operating expenses, capital expenditures are typically depreciated over several years.

Rent Roll

A document or report that lists all tenants in a property, their unit numbers, lease terms, monthly rent amounts, and payment status. It provides a snapshot of a property's income stream and occupancy.

Key Terms at a Glance

Capital Expenditure:A major, non-recurring investment that improves property value or extends its useful life.

Capitalization Rate:The ratio of net operating income to a property's current market value, used to estimate potential return on investment.

Cash-on-Cash Return:Annual pre-tax cash flow divided by total cash invested, measuring return on actual out-of-pocket investment.

Common Area Maintenance:Shared costs among tenants for upkeep of common spaces in a commercial property, such as lobbies, parking lots, and landscaping.

Due Diligence:A thorough investigation of a property's physical, financial, and legal condition before purchase or investment.

Eviction:The legal process of removing a tenant from a property for lease violations, non-payment, or other lawful reasons.

Fair Housing Act:Federal legislation prohibiting discrimination in housing based on protected classes including race, color, religion, national origin, sex, familial status, and disability.

Fiduciary Duty:The legal and ethical obligation of a property manager to act in the best financial interest of the property owner.

Gross Lease:A lease in which the landlord pays all or most operating expenses, and the tenant pays a single flat rental amount.

Habitability:The legal standard requiring rental properties to be safe, sanitary, and fit for human occupancy, including functioning plumbing, heating, and structural integrity.

Lease Agreement:A legally binding contract between a landlord and tenant outlining the terms of a rental arrangement.

Lease Renewal:The process of extending a lease beyond its original term, often with updated rent and conditions.

Net Operating Income:Gross rental income minus operating expenses, excluding mortgage and capital expenditures. A core measure of property profitability.

Operating Expense:Recurring costs of running a property, including taxes, insurance, maintenance, utilities, and management fees.

Preventive Maintenance:Scheduled inspections and servicing performed proactively to prevent breakdowns and extend the useful life of property systems.

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