Property Management Glossary

Navigating the rental industry means coming face-to-face with a fair amount of jargon—especially if you’re an owner, investor, or tenant new to the game. At On Q, we believe in transparency, education, and giving you the clarity you deserve. Below is a glossary of essential property management terms—defined in plain English—to help you speak confidently about rental properties, leases, and more.

Property Management (PM)

The day-to-day oversight of a rental property on behalf of the owner: marketing the property, screening and leasing tenants, collecting rent, handling maintenance and repairs, managing finances, and more. Think of it as the full-service operation that makes owning rentals easier and more efficient.

Market Rate

The rental price a property might command under ideal conditions today. This may differ from current lease rent—especially if that rent was negotiated or locked in previously. On your pro forma or asset analysis, “market rate” represents what you reasonably expect to charge in the present market.

Security Deposit

A refundable sum held by the property manager or owner to cover damages, delinquent rent, or other lease violations when a tenant moves out. After all deductions, the remaining amount is returned to the tenant.

Security Deposit Alternative

Instead of paying a traditional deposit upfront, a tenant may pay a non-refundable monthly fee. This alternative is becoming more common in multifamily settings, particularly for tenants who have qualifying credit but limited cash up front.

Disposition (Dispo)

At move-out, the “dispo” is the breakdown of charges deducted from a tenant’s security deposit (if any), plus any additional monies owed. It’s essentially a final accounting of tenant obligations upon lease termination.

Holding Deposit

After application approval but prior to lease start, a holding deposit is a non-refundable payment that “holds” the property for the incoming tenant. It shows commitment and prevents the tenant from backing out while the lease is finalized.

Rent Concessions

Any negotiated discount or rent adjustment offered to a tenant. For example: “We’ll reduce rent by $25/month for six months because the on-site washer/dryer was not functioning.” It’s a tool to reach a win-win without full repairs or financial strain.

Pet Deposit vs. Pet Rent

• Pet Deposit: A refundable deposit (if the home is left in acceptable condition) specifically tied to pet-related damage.
• Pet Rent: A non-refundable, monthly fee for having a pet.

While both may be used, most landlords and property managers favor pet rent as a recurring revenue stream rather than a one-time refundable deposit.

Fair Housing Act

The federal law that forbids discrimination in housing-related activities (renting, buying, lending, etc.) based on protected classes (race, color, religion, sex, familial status, national origin, disability, etc.). Property owners and managers must comply—and violations can carry serious legal consequences. More info: FAIR HOUSING ACT

Notice to Vacate

A written notification from either the tenant or the landlord/property manager to end or not renew the lease. For tenants, it signals their intent to move out. For owners/managers, it notifies the resident lease termination.

Five-Day Notice

In many jurisdictions (including Arizona), a Five-Day Notice is a formal notification delivered to a tenant for non-payment of rent. It gives the tenant five days from delivery to “make right” (i.e., pay what is due). Importantly, receiving this notice is not the same as eviction—but failing to respond may lead to further action. On Q sends this notice in certified mail and accounts for delivery time in its timeline.

Eviction

The legal process of removing a tenant from a property through the courts. Valid reasons include unpaid rent, lease violations, damage, unauthorized occupants, or criminal activity. Eviction is never the first choice, but it is a necessary tool to protect the property and owner’s rights.

Single-Family vs. Multifamily

• Single-Family: A stand-alone home intended for one household (or sometimes a townhome).
• Multifamily: Multiple housing units under one roof or within a single property (duplex, triplex, fourplex, etc.). Note: Properties with five or more units are often treated as commercial rather than residential for financing and regulatory purposes.

Landlord-Tenant Act

Each state has its own set of landlord-tenant laws, governing the rights and responsibilities of both parties. In Arizona, there is also a specific statute related to mobile-home park rentals. Owners and managers must be familiar with these rules to stay compliant.

Guarantor (Co-signer)

Someone who guarantees a tenant’s financial obligations (e.g. rent payment) if the tenant fails to do so. A guarantor usually undergoes financial and credit review, but not criminal or background checks, since they do not live in the property.

Renters Insurance

Insurance held by the tenant that protects their personal belongings inside the rental home (e.g. electronics, furniture) in the event of theft, fire, or other covered perils. The owner’s insurance typically covers the structure itself—not the tenant’s personal property.

Owner Draw & Owner Contribution

• Owner Draw: The net income from the property (after expenses and management fees) paid out to the property owner.
• Owner Contribution: When the property requires additional funds (for major repairs, capital expenses, etc.), the owner provides capital to cover those costs.

Pocket Listing

An off-market property that’s not publicly listed on MLS (or widely marketed) but made available privately. In some cases, On Q may match investment-minded buyers with such properties, often minimizing tenant disruption and marketing costs.

Final Thoughts

Understanding the language of property management is more than just semantics — it builds trust, avoids confusion, and helps every party stay aligned. As your partner in property management, On Q is committed to transparency, education, and best-in-class service. There are countless other property management terms we can help you better understand.

If any of these terms are unclear—or if you’d like to dive deeper—just let us know. We’re here to guide you.