Apartment and Condo Glossary: Plain-English Definitions for Renters and Buyers

A non-refundable fee paid to a landlord or property manager when applying to rent a unit, typically $50-$100. Covers the cost of credit and background checks. Some states limit or restrict application fees. Full guide

A one-time charge levied by an HOA to fund major repairs or replacements that exceed the reserve fund. Examples: roof replacement, elevator overhaul, parking structure repair. Can range from $2,000 to $50,000+ per unit. Florida's post-Surfside reforms (2022) now require condo buildings to maintain adequate reserves to reduce surprise assessments.

The core monthly rent payment before any add-on fees such as parking, storage, pet rent, amenity packages, or utilities. When comparing listings, always determine the base rent and total rent (all-in) separately. Full guide

A commission paid to a real estate agent who facilitated a rental transaction. In NYC and Boston, broker fees paid by tenants (typically one month's rent or 15% of annual rent) remain common despite legislative efforts to shift them to landlords. In most other US cities, broker fees for renters are uncommon. Full guide

The governing document of a homeowners association (HOA). Bylaws describe the HOA's structure, board election procedures, meeting requirements, and member rights. The bylaws are distinct from the CC&Rs (which cover use restrictions). Both documents bind unit owners and, through the owner's lease, tenants. Full guide

Capitalization rate. A real estate investment metric: net operating income divided by the purchase price. For rental condos, net operating income is rent minus HOA, property tax, insurance, vacancy, and maintenance. Most urban condos in 2026 deliver cap rates of 2-4%, below risk-free Treasury rates. Full guide

The primary governing document for a condo community. CC&Rs specify what owners and tenants can and cannot do with their units: pet rules, rental restrictions, exterior modifications, use of common areas. CC&Rs run with the land -- they bind every future owner and, through leases, every tenant. Full guide

A third party who agrees to be legally responsible for a lease if the primary tenant defaults on rent or damages. Landlords may require a co-signer for applicants with limited credit history, low income relative to rent, or recent employment changes. Co-signer is exposed to full financial liability for the lease.

Areas in a condo building owned collectively by all unit owners and maintained by the HOA. Includes hallways, lobby, elevators, gym, pool, roof, and parking structures. Contrast with 'limited common elements' (balconies, assigned parking) that are exclusive to specific units but technically HOA property. Full guide

A form of real estate where individual units within a multi-unit building have separate deeds. Each owner holds title to their unit and shares ownership of common areas through an HOA. Units can be owner-occupied or rented to tenants. The physical building can be identical to an apartment complex -- the distinction is legal and financial. Full guide

A document that lenders require when financing a condo purchase. Completed by the HOA, it discloses: owner-occupancy rate, reserve fund status, pending litigation, insurance coverage, and budget details. If the answers reveal problems (low occupancy, pending lawsuit, underfunded reserves), the lender may deny financing. Full guide

A condominium structured to operate as a hotel. Individual units are sold to investors who allow them to be placed in a rental pool managed like a hotel. Condotels face financing restrictions (no FHA or conventional conforming loans), have mandatory rental pool requirements that limit owner use, and typically sell at discounts compared to conventional condos due to the limited buyer pool. Full guide

An institutional or corporate entity that owns an entire apartment building or portfolio of properties. Corporate landlords use professional property management systems, standardized lease terms, and yield-management software for pricing. They offer consistency but less flexibility than individual condo owners. Full guide

The legal document that transfers real property ownership from one party to another. Condo owners hold a deed to their specific unit. Apartment tenants have no deed -- they have a lease. The presence of a deed is the fundamental legal distinction between condo ownership and apartment tenancy.

Debt Service Coverage Ratio loan. A mortgage product for investment properties that qualifies based on the property's rental income rather than the borrower's personal income. DSCR = net operating income / annual debt service. Most lenders require DSCR of 1.0 or above (rental income covers the mortgage) with preference for 1.25+. For condos, HOA fees reduce NOI and therefore the qualifying DSCR. Full guide

A self-contained apartment where the living area, bedroom, and kitchen are all in a single room, with only the bathroom separate. Studios in dense urban markets are often 300-600 square feet. 'Efficiency unit' and 'studio apartment' are used interchangeably in most US markets.

An animal that provides emotional support to a person with a documented mental health condition. ESAs are protected under the Fair Housing Act: landlords and HOAs must make reasonable accommodations for them, cannot charge pet fees or deposits, and cannot apply breed or weight restrictions. Documentation requires a letter from a licensed mental health professional. Full guide

Fairness in Apartment Rental Expenses Act. NYC legislation passed in 2024 that attempted to require landlords (rather than tenants) to pay broker fees when the landlord hired the broker. Implementation has been contested through court challenges as of April 2026, and broker fees paid by tenants persist in many NYC transactions. Full guide

Certification that a condo project meets HUD requirements for FHA-backed mortgages. Requirements include 50%+ owner-occupancy, no pending litigation, adequate reserve funding, specific insurance coverage, and limits on commercial space and investor ownership. About 70% of US condo buildings lack FHA approval, restricting their buyer pool to conventional loan and cash buyers. Full guide

A ground-floor apartment with direct access to a garden or yard area, or a low-rise apartment complex (typically 1-3 stories) with landscaped grounds. Garden apartments often have more outdoor space than high-rise units but may have noise or security considerations from ground-level access.

The governing body for a condominium community. The HOA manages common areas, enforces bylaws and CC&Rs, maintains reserve funds for capital repairs, and levies monthly fees and (when necessary) special assessments. HOAs are run by boards elected by unit owners. Governance quality varies enormously and is one of the most important due-diligence factors when buying a condo.

The HOA's building-level insurance policy covering the structure, common areas, and exterior. The master policy typically covers walls-in or studs-out (depending on the document type: all-in vs bare walls). Unit owners need a separate HO-6 policy for interior coverage and personal liability regardless of master policy type. Full guide

Condo unit owner's interior insurance policy. Covers: interior walls, floors, and fixtures; personal property; personal liability; additional living expenses if the unit is uninhabitable; and loss assessment coverage for special assessments. National median cost is $400-$800/year. Most lenders require HO-6 at closing. Full guide

A tenant who continues to occupy a rental unit after the lease has expired without signing a new lease. In most states, a holdover tenant is treated as a month-to-month tenant and subject to month-to-month termination notice requirements. Some leases include automatic month-to-month conversion clauses rather than holdover provisions.

A private person who owns and rents out one or a few properties, as opposed to a corporate or institutional landlord. Individual landlords are common in condo rentals where an owner-occupier buys a condo and later rents it out. Individual landlords offer more flexibility in lease negotiation but more variability in responsiveness and professionalism. Full guide

A legally binding contract between a landlord and tenant specifying the terms of tenancy: rent amount, payment due date, lease duration, permitted uses, maintenance responsibilities, and termination conditions. In a condo rental, the lease is between you and the unit owner -- but the HOA bylaws also bind you indirectly through the owner's obligations.

A portion of a condo building that is technically owned by the HOA collectively but is assigned for exclusive use by a specific unit. Examples: balconies, terraces, assigned parking spaces, and storage lockers. Maintenance of limited common elements may fall to the unit owner or the HOA depending on the bylaws. Full guide

An optional rider on an HO-6 condo insurance policy that covers your share of a special assessment that results from damage to common areas or a liability judgment against the HOA. Recommended in older buildings or in markets with high special-assessment risk (Florida, California coastal). Typically inexpensive to add to a standard HO-6 policy. Full guide

A rental arrangement with no fixed end date, continuing month by month until either the landlord or tenant gives proper notice to terminate (typically 30 days). Month-to-month offers maximum flexibility but also leaves the tenant vulnerable to rent increases or termination on short notice. Full guide

A condo that does not meet Fannie Mae or Freddie Mac eligibility requirements for conventional conforming mortgages. Common reasons: investor concentration over 35%, pending HOA litigation, condotel characteristics, short-term rental prevalence, or builder-controlled HOA. Non-warrantable condos require portfolio loans, DSCR loans, or cash -- all more expensive, restricting the buyer pool at exit. Full guide

The percentage of condo units in a building occupied by the owner rather than rented to a tenant. FHA requires 50%+ owner-occupancy; Fannie Mae requires 51%. Buildings below these thresholds cannot receive FHA or conventional conforming financing, which shrinks the buyer pool and typically reduces sale prices by 5-15%. High investor concentration also correlates with lower governance quality. Full guide

A one-time, refundable payment made at move-in by tenants with pets, held to cover pet-related damage beyond normal wear and tear. Typically $200-$500 per pet. Must be returned at move-out (less documented damage deductions) in states with security deposit return laws. Different from pet rent, which is a non-refundable ongoing monthly charge. Full guide

A monthly fee charged in addition to base rent for having a pet. Typically $25-$75 per pet per month. Unlike a pet deposit, pet rent is never refunded. Over a 24-month tenancy at $50/month, pet rent costs $1,200 -- often more than a refundable pet deposit would have cost. Negotiating a deposit-only arrangement is usually financially superior. Full guide

Insurance required by conventional mortgage lenders when the down payment is less than 20% of the purchase price. PMI protects the lender (not the buyer) against default. PMI drops when you reach 20% equity on a conventional loan. FHA mortgage insurance (MIP) works differently: it drops after 11 years if you put down 10%+, or lasts the life of the loan if you put down less than 10%. Full guide

A professional company that manages rental properties on behalf of owners. Corporate apartment buildings are typically managed by companies like Greystar, Lincoln, Equity Residential, or AvalonBay. HOAs also hire property management companies. Management company quality varies -- research before signing by checking Google reviews, BBB, and ApartmentRatings.com. Full guide

A tenant's legal right to use their rented property peacefully without interference from the landlord or others the landlord is responsible for. The warranty of quiet enjoyment is implied in every residential lease in the US, even if not written explicitly. Ongoing noise from other tenants that the landlord fails to address can constitute a breach of this warranty. Full guide

Government-imposed limits on rent increases for covered rental units. Major US cities with active rent control as of 2026 include NYC (rent stabilization system), San Francisco, Los Angeles, Berkeley, Oakland, and Washington DC. Rent control protections often do not apply to newer construction. Long-term renters in controlled units can pay significantly below market rate.

A form of rent regulation (used in NYC and some other markets) that limits annual rent increases to a government-set percentage for covered units, rather than the full rent freeze of traditional rent control. NYC's Rent Stabilization Law covers buildings built before 1974 with six or more units. Stabilized tenants have the right to lease renewal and limited increases.

The HOA's savings account for major capital repairs. A reserve study is a professional analysis of a building's components (roof, elevators, plumbing, facade, parking) with projected replacement timelines and costs, used to determine required annual contributions. A reserve fund that is 70%+ funded is considered healthy; under 50% means a special assessment is likely. Full guide

A refundable payment held by the landlord to cover unpaid rent or damages beyond normal wear and tear. Statutory limits apply in many states: California caps at 2 months rent, New York at 1 month, Massachusetts at 1 month (as of 2024). Must be returned within a state-specified timeframe (typically 14-30 days) after move-out with an itemized deduction statement. Full guide

See 'Assessment' above. Full guide

An arrangement where the primary tenant rents their unit to a third party (subtenant) for a period, often while maintaining the original lease. Subletting is prohibited in most institutional apartment buildings and in the majority of condo HOAs. Always confirm subletting rules in both the lease and HOA bylaws before signing if subletting flexibility matters. Full guide

A lease term where the landlord pays some or all utility costs as part of the rent. In apartments, water and sometimes heat are commonly included. In condo rentals, utilities are usually separately metered and paid by the tenant. 'All utilities included' in a listing is a significant amenity worth quantifying in dollar terms when comparing rent levels. Full guide

An apartment in a building without an elevator, requiring tenants to use stairs. Walkup buildings in dense cities (NYC, Chicago, Boston, San Francisco) are often older pre-war construction with lower rent and better soundproofing (masonry walls) than newer elevator buildings. Moving furniture in and out without an elevator is a practical consideration.

A condo that meets Fannie Mae and Freddie Mac guidelines for conventional conforming mortgage financing. Requirements include: 51%+ owner-occupancy, no pending litigation, adequate reserves, less than 35% investor concentration, and no condotel characteristics. Warrantable condos have the widest buyer pool at exit and the most favorable mortgage terms. Full guide

An implied legal guarantee in every residential lease that the landlord will maintain the property in a habitable condition: working heat and hot water, structurally sound walls and roof, functional plumbing, freedom from pest infestation, and compliance with local housing codes. Breach of habitability can allow tenants to withhold rent into escrow or terminate the lease without penalty.