Rental Definitions
This section offers some common definitions of terms used in the apartment
rental services industry. It is important for consumers to understand the
legal terminology before leasing an apartment. This list includes the common
definitions of terms such as Lease, Lessee/Tenant, Lessor/Landlord, Market
Rate Rental, Tax Credit, Income Qualifying Rentals and other terms. If you
have any questions about any definitions of terms please contact the local
property manager.
Rental Definitions
Here is a list of common definitions of terms used in the apartment rental
services industry.
1+/2+/3+/4+
The "+" indicates a unit that has a space considered extra. This
space could be a large closet, office space or random storage.
Apartment
An apartment is a living space designed for use as a residence and located
within a building where there is more than one apartment. Apartments can
range from Efficiency, Studio, 1-bedroom, 2-bedromm, 3-bedroom and larger.
The number of bathrooms can also vary along with apartment amenities.
Central Air
Central Air is similar to Gas Forced Air (GFA) heat as it has a main unit,
which circulates through the ventilation system of the apartment.
Efficiency Unit
A smaller unit than a standard studio that has a combined living and sleeping
area. Efficiency Units are typically smaller than Studio Units.
Electric
Heat that is drawn from electricity and service that provides lights and
power in the unit. Electric heat can have a wide range of prices.
Garage
There is covered garage parking that may be assigned and/or cost extra.
Garden unit
A Garden Unit is located below or at ground level. The term can also refer
to as a basement level apartment.
Gas Forced Air (GFA)
Gas Forced Air (GFA) heat also known as central heating circulates heat through
a ventilation system or ductwork within the apartment. Typically each apartment
will have its own furnace located in or near the apartment.
Gated
Community and/or outdoor parking that is enclosed within a gated area with
password access. There may also be assigned parking spaces.
Housing Choice Vouchers
The housing choice voucher program is the federal government's major program
for assisting very low-income families, the elderly, and the disabled to
afford decent, safe, and sanitary housing in the private market. Since
housing assistance is provided on behalf of the family or individual, participants
are able to find their own housing, including single-family homes, townhouses
and apartments.
HUD 202
The Section 202 program helps expand the supply of affordable housing with
supportive services for the elderly. It provides very low-income elderly
with options that allow them to live independently but in an environment
that provides support activities such as cleaning, cooking, transportation,
etc. The program is similar to Supportive Housing for Persons with Disabilities
(Section 811).
HUD Section 8
Section 8 is a federally funded housing subsidy program that provides low-income
families the opportunity to choose and lease safe, decent and affordable
privately owned rental housing by supplementing what they could afford
on their own. Public Housing Authorities apply to the U.S. Department of
Housing and Urban Development (HUD) for Section 8 funds, which are then
provided to eligible families in accordance with HUD rules and regulations.
Laundry Facility
There is laundry facility on the property that includes washers and dryers.
The property management maintains the laundry equipment but it is the tenant's
responsibility to pay a fee for use of the machines.
Lease
A bilateral contract in which the lessor (landlord) promises to provide exclusive
possession of the property in return for the lessee's (tenant) promise
to pay rent.
Lessee / Tenant
A Lessee also known as a Tenant is someone who pays rent to use land, a building
or apartment that is owned by a Landlord / Lessor.
Lessor / Landlord
A company or person that provides temporary use of property in return for
periodic payment. The terms Lessor and Landlord both mean the same.
Loft
A large, high ceiling, usually unpartitioned floor typically built from factories,
warehouses or other commercial or industrial space.
Low-Income Housing Tax Credit Properties
The Low-Income Housing Tax Credit (LIHTC) Program offers property owners
and investors a credit or reduction in their tax liability that is based
on the costs of development and the number of qualified low income units
in a newly constructed or rehabilitated development. In exchange, the owners
must offer quality units to low-income tenants at fixed below market rate
rents. The lower monthly rental can be set at either 30%, 40%, 50% or 60%
less of the applicable Area Median Income. Tenants must meet income eligibility
requirements to qualify for residency.
Market Rate Rental
The monthly rental rate for an apartment based on the local market costs
and supply and demand in that geographic area for apartment rentals.
Median Income
Average median income for residents of that geographic area.
Modern
This is a generic term describing property and can include property from
the 70's, 80's or 90's that have been remodeled.
New
New refers to any kitchen that has been remodeled within the
last five years.
New Construction
New property is considered those built within the past five years to present.
Partial Rehab
A Partial Rehab is a property that has had part of its interior remodeled
or replaced.
Project Based Section 8 Housing
Section 8 is a Federally funded housing subsidy program that provides low-income
families the opportunity to choose and lease safe, decent and affordable
privately owned rental housing by supplementing what they could afford on
their own. Public Housing Authorities across the country apply to the U.S.
Department of Housing and Urban Development (HUD) for Section 8 funds, which
are then provided to eligible families in accordance with HUD rules and regulations.
There is often a wait list for these funds and rental units. Project
Based Section 8 Housing also provides HUD-subsidized rental assistance. Eligible
low-income tenants pay a percent of their gross adjusted income for rent.
The rental assistance is attached to the unit so tenants cannot "take" the
assistance with them if they move. Section 8 Vouchers are not accepted for
project-based units; however, Vouchers may be used at other units in the
development that are not part of the project-based program.
Public Housing
Public Housing provides HUD-subsidized rental assistance for eligible tenants
residing at housing developments that are primarily HUD-financed and owned
by the Housing Authority. Eligible low-income tenants pay a percent of
their gross adjusted income for rent. The rental assistance is attached
to the unit so tenants cannot "take" the assistance with them
if they move. Section 8 Vouchers are NOT accepted for HUD-subsidized rental
assistance.
Radiator Heat
The Radiator heat is supplied through steam heat created by a central boiler
within a building This heat is usually included in rent.
Relet or Sublet
A Relet also known as a Sublet are the same except the current tenant is
no longer responsible for the lease so a brand new lease is formed between
the landlord and the new tenant. This process is called an Assignment.
Many landlords will not accept a Relet (Sublet) since they already have
the current tenant in a contract for the rent. Also with a Relet (Sublet)
the current tenant is still responsible for the rent if the sublettor does
not pay.
Rent
Money paid for use of leased property usually paid on a monthly basis with
a fixed due date.
Resident Selection Criteria and Section 8 Assisted Housing
Section 8 Assisted Housing communities have Resident Selection Criteria.
To receive rental assistance, the applicant(s) must be income eligible and
pass background screening and be able to meet each of the Selection Criteria.
Applicants must sign and date appropriate HUD-Forms. There are several forms
that must be completed, two of which are:
HUD-Form 50058: This is the Income Certification Form for tenant based Section
8 used by all Public Housing Authorities. Tenant Based Section 8 is in the
form of a voucher or certificate that the Tenant has possession of. The Public
Housing Authorities issue the voucher to qualified individual/households.
HUD-Form 50059: This is the Income Certification used for project based Section
8. Project based Section 8 remains with the community after the resident moves
out. Project Based subsidy is awarded in order to facilities the development
or preservation of assisted housing.
Section 8 Assisted Housing
Section 8 Assisted Housing is privately owned and managed housing that is
affordable to lower income Americans as a result of Federal rental assistance
subsidies, Federal mortgage insurance and Federal direct loans. Rental assistance
subsides pay the difference between the rent that is affordable to the resident
and the total rent for the unit. HUD's predominant rental assistance program
is Section 8, which has several subprograms such as Section 8 New Construction
and Substantial Rehabilitation. Other HUD rental assistance programs include
the Rent Supplement and Rental Assistance Programs. The Farmers Home Administration
also has its own rental assistance program. Many assisted housing communities
have a combination of Federal Rental Assistance Subsidies and either Federal
mortgage insurance or a direct Federal mortgage loan.
Security Deposit
A Security Deposit is paid when renting an apartment that protects the lessor/landlord
for excessive damages and repairs to the unit when the lease is up. At
the end of the lease the lessor/landlord may also use the funds to offset
any amounts owed under the lease agreement. Any remaining amount is refunded
to the lesee/tenant. The lessor/landlord must notify the lesee/tenant within
a defined period of time at the end of the lease any amount being withheld
for damages. The balance must be refunded to the tenant within a defined
period of time.
Standard
Standard apartment features are typically found in vintage apartments. They
would be no frills and basic appliances.
Studio Apartment
A small apartment where the bedroom and living area is combined. There is
usually a galley kitchen and private bath.
Tax Credit, Income Qualifying Rentals
Property owners and investors provide quality rental units to low-income
tenants at fixed below market rate rentals. Tenants must meet income eligibility
requirements to qualify for residency in the building.
Tenant
Someone who pays rent to use land or a building or apartment that is owned
by someone else. A tenant is also know as a lesee.
Unit
Unit is another term for an apartment. It can refer to any size apartment.
Walkup
An apartment or a house with no elevator which floors have more than one
unit.
Washer/Dryer Included
There is a washer and dryer inside the apartment for the use of the tenant
but the tenant pays for the utilities that run the machines.
Window Air
There is no central air and units are installed on a window sill.
|