Rental property
Real estate bought to rent to tenants for income rather than to live in. Lenders, insurers and tax rules treat it differently from a primary residence.
Also called: rental, investment property, income property, rental home
Related terms
The money left each month after collecting rent and paying all expenses, including the mortgage. Positive cash flow means the property pays for itself with some left over.
The owner who rents a property to a tenant. Landlords must follow fair housing law and state and local landlord-tenant rules.
A person or company hired to run a rental, including finding tenants, collecting rent and handling repairs. Fees are often a percentage of rent plus leasing fees. Some states require a real estate license.
An investment property loan qualified on the rental income the property produces rather than the borrower's personal income. Lenders look at whether rent covers the payment by a set ratio.
The home you live in most of the year. Loans, tax breaks, and insurance are often better for a primary residence than for a second home or rental.