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Reference
Rental Terms Glossary
Plain-English definitions of every term you will encounter when searching for, applying to, and renting an apartment.
30 terms defined
A
- Application Fee
- A non-refundable fee paid to a landlord or property manager to cover the cost of processing your rental application. Typically including a background check and credit pull. Average cost: $50–$100 per adult applicant. Some states limit or regulate application fees.
B
- Background Check
- A screening process landlords use to review your criminal history, past evictions, and identity. Separate from a credit check. Landlords must get your written consent and use FCRA-compliant screening agencies. You have the right to dispute inaccurate information.See also: How to dispute your tenant screening report →
C
- Co-signer
- A person who signs the lease alongside the tenant, sharing equal legal responsibility for rent and lease obligations. Landlords can pursue a co-signer for unpaid rent immediately. Without first attempting to collect from the primary tenant. Typically requires strong income (80x monthly rent) and credit (700+).See also: Guarantor vs. co-signer explained →
- Credit Check
- A review of your credit report. Usually from Experian, TransUnion, or Equifax. That landlords use to assess payment reliability. Most rental credit checks are "soft pulls" (don't affect your score) or "hard pulls" depending on the service used. Landlords typically want a score of 620+ (650–700+ in major cities).
D
- Deed Restriction
- A provision in a property's deed that limits how it can be used. For renters, this most often means restrictions on business use, subletting, or occupancy limits. Your landlord is bound by deed restrictions even if they're not in your lease.
E
- Eviction
- The legal process by which a landlord removes a tenant from a rental property. Landlords must follow state-specific procedures including proper notice (usually 3–30 days depending on reason), filing with a court, and obtaining a judgment before physically removing a tenant. "Self-help" evictions (changing locks, removing belongings) are illegal in all US states.See also: Renting after an eviction →
F
- First Month / Last Month / Security Deposit
- A common move-in cost structure requiring upfront payment of: first month's rent (credited to month 1), last month's rent (held until lease end), and a security deposit (returned if no damage). On a $2,500/month apartment, this totals $7,500 upfront. Common in Boston and competitive markets.
G
- Gross Income
- Your total income before taxes and deductions. Landlords use gross income (not net/take-home pay) when evaluating whether you meet the income requirement. For the 40x rule: if rent is $2,500/month, you need $100,000 annual gross income ($8,333/month gross).
- Guarantor
- A person or company that agrees to pay rent if the primary tenant cannot. Unlike a co-signer, a guarantor is not on the lease itself and may only be pursued after the landlord attempts to collect from the tenant first. Institutional guarantors (Insurent, The Guarantors, Leap) charge 4–10% of annual rent.See also: Guarantor vs. co-signer explained →
H
- Hold Deposit
- A refundable or partially refundable deposit paid to hold an apartment off the market while your application is processed. If approved and you proceed, it's typically applied to your security deposit. If you back out after approval, you may forfeit it.
I
- Income-to-Rent Ratio
- The multiplier landlords use to assess affordability. Most landlords require annual gross income to be at least 40x the monthly rent. Some NYC landlords require 45x. Example: $3,000/month rent requires $120,000–$135,000 annual gross income.See also: Income requirements by city →
L
- Lease
- A legally binding contract between a landlord and tenant specifying rent amount, lease term, rules, responsibilities, and conditions for termination. Once signed, both parties are bound. Changes require a written addendum signed by both parties. Always read the full lease before signing.See also: Month-to-month vs. annual lease →
- Lease Addendum
- A supplemental document added to a lease that modifies or adds terms. Such as a pet addendum, parking agreement, or early termination clause. Addenda are legally binding if signed by both parties.
- Lease Break Fee
- A contractual penalty for terminating a lease before its end date. Typically 1–3 months' rent. Some leases allow early termination with sufficient notice (60–90 days) and payment of this fee.
M
- Month-to-Month Tenancy
- A rental arrangement without a fixed end date that renews automatically each month. Provides maximum flexibility but typically costs 10–25% more than an annual lease. Either party can end it with 30 days' notice (60 in some states).See also: Month-to-month vs. annual lease →
N
- Net Income
- Your take-home pay after taxes and deductions. While landlords evaluate gross income for the 40x rule, understanding your net income helps you assess what you can actually afford. As a rule of thumb: if your gross income is $80,000/year, your monthly net take-home is roughly $5,000–$5,500.
- Notice to Vacate
- A formal written notice from either tenant or landlord indicating intent to end a tenancy. Required timeframes vary by state (typically 30–60 days for month-to-month; some states require 90 days). Sending proper written notice protects your security deposit and legal rights.
P
- Pet Deposit
- A refundable deposit paid in addition to the security deposit to cover potential pet-related damage. Typically $200–$500 per pet. Note: California limits total security deposits (including pet deposits) to 2x monthly rent for unfurnished units.See also: Renting with pets guide →
- Pet Rent
- A monthly surcharge added to rent for tenants with pets. Typically $25–$100/month per pet. Unlike a pet deposit, pet rent is non-refundable. It's separate from a one-time pet fee or pet deposit.
- Pro-rated Rent
- Rent calculated for a partial month. When you move in after the 1st day of the month. Calculated as: (monthly rent ÷ days in month) × days remaining in month. Example: $3,000 rent ÷ 30 days × 20 remaining days = $2,000 pro-rated rent.
R
- Renters Insurance
- An insurance policy that covers a tenant's personal property, liability, and additional living expenses if the rental becomes uninhabitable. Typically costs $10–$20/month. Many landlords now require it. Does NOT cover the building itself (that's the landlord's insurance).
- Renter Resume
- An optional one-page document (not a legal requirement) that proactively presents your income, rental history, employment, and references to a landlord. Similar to a job resume. Can significantly speed up the application process in competitive markets.See also: How to write a renter resume →
S
- Security Deposit
- A refundable amount held by the landlord to cover potential damages beyond normal wear and tear. Typical amount: 1–2 months' rent. State laws govern the maximum amount, how it must be held (often in a separate account), and the timeframe for return (usually 14–30 days after move-out). Document all existing damage at move-in.
- Soft Credit Pull
- A credit inquiry that does NOT affect your credit score. Used by many landlords for initial screening. Contrast with a "hard pull" which does affect your score and appears on your credit report. When applying to multiple apartments, ask whether the landlord uses a soft or hard pull.
- Subletting (Sublet)
- Renting out your apartment to another person (sublessee) while your lease is still active. Most leases require landlord approval. As the original tenant, you remain responsible for rent and any damage caused by the sublessee. Some cities have specific tenant rights around subletting.
T
- Tenant Screening Report
- A compiled report landlords use to evaluate applicants, typically including: credit check, criminal background check, eviction history, and identity verification. Compiled by third-party agencies (TransUnion SmartMove, Experian RentBureau, etc.). You have the right to dispute inaccurate information under the FCRA.See also: How to dispute your tenant screening report →
- Tenancy at Will
- A rental arrangement with no defined lease term or end date, where either party can end the tenancy with proper notice. Different from month-to-month in some states; check local law for required notice periods.
U
- Utility Allocation
- How utility costs (electricity, gas, water, trash) are divided between landlord and tenant. "Utilities included" means the landlord pays all utilities in the rent. "Utilities not included" means the tenant pays directly. "RUBS" (Ratio Utility Billing System) allocates shared utility costs proportionally among tenants.
V
- Verification of Deposit (VOD)
- A form used by landlords to verify funds in your bank account. Typically requested when you're asked to show ability to pay first month + last month + security deposit upfront. Banks issue these letters directly to lenders or landlords confirming account balances.
W
- Walk-through
- An inspection of a rental unit before move-in (and ideally at move-out). Document all existing damage with photos and a written checklist. Signed by both you and the landlord. At move-in. This protects your security deposit by establishing baseline condition before occupancy.
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Last updated: March 2026