Finance Your Washington Rental Property with a Hard Money Loan
The real estate industry has its own lingo. It can be confusing, especially if you’re just starting out as a rental property owner.
The tenant-landlord experience is often demanding. In a competitive housing and rental market like Washington State, you can’t afford missteps thanks to unfamiliar jargon.
Get to know the following twenty real estate terms before purchasing your first rental property and you’ll be on track for success.
20 Must-Know Landlord Tenant Real Estate Terms for Success!
Abandonment: When a tenant shows an intent to forfeit their right to live in a property.
Amenities: Tangible and intangible features that enhance the value or livability of a property.
Bond: Also known as security deposit. Returned at the end of a tenancy or forfeited in cases of property damage or lack of rent payment.
Broker: A licensed individual who purchases and sells properties for other people for commission. Similar to a realtor.
Constructive Eviction: When a tenant vacates a unit made unfit to live in as the result of a landlord’s actions or failure to act to solve problems.
Conventional Housing: A residential property that adheres to current market rates and housing standards in its area.
Co-Signer: The second, joint signer of a lease or mortgage. A co-signer guarantees payment if the first signer is unable to pay.
Eviction: A legal process in which a landlord removes a tenant from a rental property after due process. Forced eviction must be for good cause.
Escrow Account: A third party account where funds are held during the property transfer process. Money held in escrow provides assurance to the seller.
Fair Housing Act: A Federal law that protects people against discrimination on the basis of race, age, color, handicap, sex, religion, national origin, and familial status when renting or buying.
Fixture: Anything a tenant installs in a rental property that cannot be removed upon vacating.
Lease: The written agreement between landlord and tenant specifying length of time and amount to be paid for a unit.
Lease Option: The option for a tenant to purchase the property they are leasing, either when the original lease expires or at another time.
Property Management Agreement: The agreement between a landlord and the company that maintains their rental property. It includes detail about fees and management of the property.
Rent Control: Housing laws, typically found in urban areas, that restrict rent increases and how much landlords can charge.
Rent to Own: An agreement, similar to a Lease Option, allowing a tenant the option to purchase a property they are renting.
Right of Entry: Situations that permit a landlord to legally enter a property, including emergencies, to make repairs or to show a unit to prospective renters. Advanced notice is required in most cases.
Subletting: When a tenant leases their rental unit to another tenant, typically when travelling for an extended period. If allowed to sublet, tenants are still responsible for their unit and lease terms while away.
Tenant: A person who leases and lives in a landlord’s rental unit for a specified length of time and amount of money. Rental terms are set out in a written and signed lease.
Tenant Improvements: A lease clause that states if a tenant can make improvements to a property, the kind of improvements allowed, and if the tenant will receive compensation.
Term of the Lease: Lease details, including length of lease (i.e. month-to-month, fixed term), sublet rules, etc.
Warranty of Habitability: A landlord’s implied legal responsibility to provide a fit, safe place to live. Landlords must make timely repair to any conditions that make a unit uninhabitable.
We Make Private Money Loans to Washington State Rental Property Owners
Being a rental property owner can be both rewarding and challenging. When unexpected expenses arise, our hard money lender team is there to provide fast cash loans when traditional lenders say no. Credit history is not a concern. We base our private money loans to Washington State investors on available equity. Give us a call at Gregory M. Russell to learn more. We look forward to “talking real estate!”