Property management terms to know in 2026

Newly elected board members may come across unfamiliar terminology in their role. Making a list of a few key words and reviewing them regularly can help make the transition easier. With time and experience, this terminology will become second nature.

Below, you will find a good starting point for your list, brought to you by FirstService Residential. Beyond this list, it would be a great idea to speak to your property management company to discover any specific terms applicable to your role in your community.
 

Community association management terms to know

Articles of incorporation

This is a legal document that establishes your homeowners association, condominium, or cooperative. This document is filed with the proper state agency, should the information be required. Traditionally, most condos and co-ops are formed as corporations. The majority of planned communities are non-profit, non-stock entities.

The articles, which could be in the arrangement of a corporate charter, address items such as bringing the corporation into existence; defining powers and purpose; and indicating the assembly of a board of directors.
 

Bylaws

This term refers to the formal regulations which most common interest communities adopt. Some examples that this term entails are requirements for community membership, rules for managing meetings, voting regulations, election procedures, quorum requirements, board member responsibilities, and the general powers of the board.
 

Community/maintenance assessments or fees

Association fees are finances paid by community members on a monthly, quarterly, or annual basis to cover services such as trash removal and landscape maintenance.

The fees also cover maintenance for amenities such as the swimming pool, tennis court, gym, security, community events, insurance programs, and other necessary items related to the property’s common elements.

In general, we refer to these as assessments, but neither the NC Planned Community Act nor the NC Condominium Act define the term “assessments.”
 

Community/property manager

This representative is responsible for overseeing the daily management of your community. Your association’s board will typically hire and approve who is assigned this role. This person’s responsibilities include helping enforce bylaws passed by board members and assisting with fiscal matters, administering any board-approved policies and guidelines, maintenance of the building and grounds, and administrative or clerical duties.
 

Declaration, CC&Rs, or master deed

These documents are drawn up to declare the ownership rights and limitations that apply to all members of a community. For condos and co-ops, the document is also referred to as the declaration or master deed.

For a planned community it is titled a declaration of covenants, conditions, and restrictions. These documents:

• State what property (including common element %) is owned by the individual and what is owned by the community at large;
   
• Create a network among all owners in relation to each other and the community for maintaining, funding, and governing the development;
   
• Set standards, restrictions, and obligations based on architectural control and other activities to promote communal agreement on all items within the community;
   
• Establish an administrative framework; and
   
• Provide transition of control of the association from the developer to the property owners.

Hierarchy of authority

This concept may vary from one community to another. Traditionally, this entails all governing documents used by the homeowners association, condo, or co-op including:

• Recorded map or plat
   
• Rules and regulations
   
• Declarations, CC&Rs, master deed, proprietary lease, or occupancy agreement
   
• Bylaws
   
• Articles of incorporation
   
• And any other items necessary to the community

Local laws and regulations

Because your community resides in a town or county that has its own set of codes, laws, taxes, and services — these entities could affect your community’s annual budget and be incorporated into membership fees/assessments.

One example is the existence of local fire codes that may require sprinkler systems, exit signs, or fire extinguishers in units or common buildings. Your community’s swimming pool may be subject to water tests. Additional taxes may be applied to residents.

Verify with your local government office, or reach out to your property management company, to see if any of these affect your community. Learn more in our guide to North Carolina property management laws.
 

Recorded map or plat

This document illustrates the specific location of all lots before they are sold, as well as any additional common areas. This document is an aid to identify any owner’s or community’s title to the property, as well as determine who is held responsible for maintaining the property, and whether the pieces of the property are accurately accounted for.
 

Resolutions

These decrees are implemented by association board members and establish rules and regulations for your community. It is recommended that any rules and regulations passed by a board be recorded into a Book of Resolutions so that they are in an organized and indexed manner for easy access. There are various types of resolutions including:

• Policy: Certain resolutions affect owners’ rights and regulations as well as address items including common areas, architectural provisions, and procedures needing to be enforced.
   
• Administration: These address internal workings of the community including operations, collections, researching meeting locations, etc.
   
• Special: These resolutions implement board rulings that apply to a specific situation, such as rules enforcement, violations, or actions taken after a lawsuit.
   
• General: These encompass routine, ordinary events stated in a community’s calendar such as budgets or approval of contracts.

Rental property management terms to know

Property manager

A property manager handles day-to-day rental operations for an owner, such as advertising, leasing, rent collection, maintenance coordination, renewals, and compliance workflows.
 

Broker-in-charge (BIC)

In North Carolina, property management firms typically operate under a licensed brokerage structure, and the broker-in-charge is the licensee responsible for supervision and compliance inside the firm under real estate commission rules.
 

Principal (owner) and agent (manager)

“Principal” is the owner/client. The property manager is the agent acting on the owner’s behalf. This matters because managers typically have duties around resident communication, accounting, and acting within the authority granted by the management agreement.
 

Lease agreement

The lease is the contract that sets rent, term, rules, fees allowed under the lease, and expectations for maintenance reporting and access. When disputes happen, the lease language is often the first thing to check, unless a statute overrides it.
 

Lessor and lessee

The lessor is the landlord/owner, while the lessee is the tenant. You’ll see these terms in formal lease documents, notices, and court filings.
 

Security deposit

A security deposit is money held to cover unpaid rent, damages beyond normal wear and tear, and other allowed charges after move-out. North Carolina’s Tenant Security Deposit Act requires deposits to be held in a trust account (or secured by a bond) and requires specific disclosures to the tenant about where the deposit is held (N.C. Gen. Stat. § 42-50).
 

Security deposit caps

North Carolina caps security deposit amounts based on the tenancy type (weekly, month-to-month, and longer terms) (N.C. Gen. Stat. § 42-51(b)).
 

Rent roll

A rent roll is a simple snapshot of your rental income: it lists each unit, who lives there, what they pay, and the key lease dates (plus current balances, if any). Owners use rent rolls to track cash flow, spot vacancies, and share clean numbers with lenders or investors.
 

Prorated rent

Prorated rent is the partial-month rent charge when a tenant moves in or out mid-month. It’s typically calculated daily based on the lease terms and it should be explained clearly at move-in to avoid day-one disputes.
 

Tenant screening

Tenant screening usually includes verifying identity, income, rental history, and credit (and sometimes criminal background checks, depending on the provider and the owner’s criteria). Whatever your screening standard is, apply it consistently and in a way that’s compliant with North Carolina fair housing laws.
 

Late fee

A late fee is the extra charge a landlord can add when rent isn’t paid on time. In North Carolina, late fees are only allowed in certain situations and are capped by law, so the lease should clearly say when a late fee applies and how it’s calculated (N.C. Gen. Stat. § 42-46).
 

Eviction (summary ejectment)

In North Carolina, the legal eviction process is called “summary ejectment.” It’s the court process a landlord uses to regain possession of a rental home when a tenant holds over after the lease ends or otherwise meets the legal grounds for removal (N.C. Gen. Stat. § 42-26).

For more tips on how to be a successful board member, contact FirstService Residential, North Carolina’s leading property management company, today.

This information is provided for general informational purposes only and is not intended to constitute, and should not be relied upon as, legal, regulatory, financial, or operational advice, or as a representation or guarantee of any specific services, capabilities, or outcomes. Property management needs, regulatory requirements, market conditions, and available services vary by jurisdiction, property type, and community. FirstService Residential provides services through locally based affiliates and associates, and services and results may vary by community, region, contractual terms, and applicable law.