Being a landlord in Odessa might have you seeing new terms you’ve never encountered before. It’s your duty to understand as many real estate terms as you can to manage your rental property as efficiently as possible. Here are some essential property management terms you need to know as you navigate the Odessa real estate industry.
Rental Property
The property that you allow people to live in is your rental property. Besides space, you also rent out your utilities and equipment. The people using your rental property pay you in exchange for your shelter and utilities that they use as if it were their own.
Tenants
The people who you allow to use your rental property are your tenants. They pay you for using your property and equipment. Normally, you would hold tenant screenings to get to know your prospective occupant. You don’t want to rent out your property who turns out to be sloppy and careless with your place!
Security Deposit
Tenants pay a security deposit to make sure they fulfill their financial obligations to your rental property. You can use a tenant’s security deposit as financial insurance to pay for any damages that they cause while renting your property.
Fixed-Rate Mortgage
This is a home loan that you make when buying a rental property. Typical loan terms last up to 30 years and since it is fixed, the interest rate remains the same all throughout the years of the loan term.
Adjustable-Rate Mortgage
This is also a home loan that you make when buying rental property in Odessa, but instead of having the same interest rate throughout the loan’s lifetime, it varies after five or seven years. You might want to get a fixed-rate mortgage for your Odessa rental property if you intend to hold on to your property for longer than five years.
Investment Property
Just like rental property, an investment property could be something you rent out to tenants. An investment property can also be a commercial property because its main purpose is to make money.
Investment property owners normally don’t occupy their investment property. You might own an investment property with intentions of flipping it for a profit, meaning you hold on to the property for a while and then sell it as soon as stock prices seem favorable.
Real Estate Agent
These are the people you look for if you want to own rental property. Real estate agents or real estate brokers connect you, as a rental property buyer, with the property sellers. They’re like middle persons who you pay to find the best rental property in Odessa that matches your intentions.
Turnover Rate
The percentage that tenants move out of your property is the turnover rate. You don’t want high turnover rates because if a lot of tenants move out, you need to prepare your rental property for new tenants who will move in, so you’ll be spending a lot on maintenance.
Eviction
This is when you remove a tenant from your property when they fail to meet the terms in the lease agreement. In Odessa, you need to provide a Notice to Terminate Tenancy before you let a tenant go.
Conclusion
Owning rental properties in Odessa doesn’t have to be complicated as long as you understand the terms that you constantly use in the industry. If you’re renting out a property in Odessa, you’ll want potential tenants to know what you have to offer.
