Institute of Real Estate Management - Glossary of real estate management terms

As the leading source of real estate management information and education, the Institute of Real Estate Management has been defining terms used in its courses and textbooks for more than 70 years. This new Glossary of Real Estate Management Terms reflects the diversity of the interests and responsibilities of professionals who manage real property for others as well as the intricacies of operating a real estate management business. The focus of this Glossary is on the language of real estate management and the terminology that real estate managers use or are likely to encounter in their dealings with owner-clients, tenants/residents, and on-site employees they supervise. Definitions clearly identify differences in meaning and usage when they vary from one type of property to another.

The activities and responsibilities of real estate managers are wide-ranging. Their focus is on property operations and maintenance and the requisite accounting, record keeping, and reporting that are incumbent in property management. However, their day-to-day duties often require knowledge of a number of additional disciplines. Because purchasing real property is a major capital investment, real estate managers must understand the terms of mortgage loans used for financing and refinancing properties they manage. Rental properties and real estate management firms are operated as business enterprises, and these activities have a specialized vocabulary. Real estate managers work within a variety of contracts, including management agreements, leases, and service contracts so they need to understand the language of contracts. Definitions are also included for many types of lease clauses, in particular those whose meanings vary by property type.

Risk management is an important responsibility related to the safety and security of residents, tenants, and management employees. In particular, management personnel need to be trained in emergency procedures. Insurance claims must be filed when an accident on a managed property causes injury or property damage. Police reports must be filed when a crime is committed. Real estate managers and property owners may also be defendants in lawsuits arising out of such accidents or criminal incidents. All types of properties, but especially commercial properties, can have environmental problems related to hazardous materials. To facilitate real estate managers understanding in these areas, the Glossary includes definitions of insurance coverages, types of crimes and their classification for punishment, and selected terms related to environmental compliance.

In addition, each type of property encompasses unique challenges. Managers of rental apartments must comply with fair housing laws. Government-assisted properties must comply with regulations administered by the U.S. Department of Housing and Urban Development (HUD). Managers of condominiums and similar types of properties work with the homeowners association and its committees. Managers of mobile home parks and manufactured housing communities use specialized terminology regarding this type of housing and its installation. Office building managers work with space planners, architects, and construction contractors and must be able to communicate knowledgeably with them. To ensure the success of a shopping center, a manager of this type of property must be familiar with the terminology of retailing.

The goal in compiling this Glossary has been to provide definitions and sometimes context for the broad array of terms that are specific to real estate management or related to it. The Glossary is comprehensive but not all-inclusive. In particular, this book has excluded technical terms that have already been defined in the Institute publication, The Real Estate Managers Technical Glossary. It is hoped that this small volume will be a helpful resource and reference for all those involved in the management of real property, both the career novice and the seasoned professional.

Listings are presented in alphabetical order following dictionary style (i.e., letter by letter). Thus, market precedes marketing but market research follows marketing research. Cross-references are indicated generally by the words see or see also, although there are sometimes instructions to compare a definition to that of another term. Italic type is used to highlight words within definitions for specific purposes, as shown in the examples that follow.

promotional aid A gift, usually marked with the name of the giver, used as part of a promotional campaign for a product or service; also called handout or giveaway and sometimes referred to as a promotional item. Used in real estate management to interest prospective tenants in leasing space at a particular property.

In the foregoing example, italics are used to identify alternate names. Someone looking up handout or giveaway would find a cross-reference to the primary definition.

giveaway Another name for promotional aid.

Italics call out giveaway when that searcher looks up promotional aid. In the same example, promotional item as an alternate name does not include a specific cross-reference because the entry would appear immediately after the definition of promotional aid.

Some definitions include related subentries as a means of providing a clear explanation of the scope of a concept, even though the subentries are themselves defined separately. For example, the definition of maintenance includes information about various types or categories of maintenance (e.g., corrective, preventive, routine, deferred). In some instances, however, the subentries are defined only within the definition of the main term. For example, standard specification and nonstandard specification are cross-referenced to specification where they are defined.