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Rental Property Management Midlands | Residential Leasing Terms That Every Property Manager Should Know (Scott Properties)

Rental Property Management Midlands | Residential Leasing Terms That Every Property Manager Should Know

Rental Property Management Midlands | One of the most important traits a property manager must have is knowing the right leasing terminology so that rental prospects trust that the property manager knows what they are talking about. If a renter asks the property manager what a term in the lease means, the property manager needs to be able to explain the term clearly. Here are a few terms we think you should know that you might not already. 

Fixed Term Lease- A fixed-term lease is for a specified period. These leases are usually for 6, 12, or 18 months, but some leases could be longer. Most will end on a specified date and have the option of becoming a month-to-month lease, or you’ll be offered a chance to renew your lease or vacate. 

Grace Period- Some leases will include a grace period stipulated in the lease for paying rent late without penalty, or for other things such as being able to back out of your lease after you sign one. 

Guarantor- A guarantor is also called a co-signor and is a person who guarantees that if the renter is unable to pay their rent, the co-signor will be responsible for paying. A guarantor is usually needed when the applicant cannot meet the rental criteria on their own. 

Periodic Term Lease- This type of lease automatically renews at the end of the term for the same amount of time as the original lease. If the lessor or lessee wishes to break the lease or not renew, they will have to provide notice before the lease is up. The lease will specify exactly how far in advance both parties will need to give notice. 

Sublease- The property manager may allow a property to be sublet under certain conditions. A sublet is when the lessee has to vacate the property before the end of their lease term, but someone else is available to take over the remainder of the lease. If the person subleasing the home does not pay rent, the original renter is often responsible. 

If you’re ready to hire a property manager that understand a lease like the back of their hand, call Scott Properties at 843-790-0148.