Property Management Glossary: Key Terms for Montreal Owners

Property management has a vocabulary of its own. This glossary defines the terms Montreal owners meet most often when they review a statement, sign a mandate, or plan a renovation.

Financial terms

Net operating income (NOI)

Rental income minus operating expenses, before financing and income tax. NOI is the clearest measure of a building's day-to-day performance.

Capitalization rate

NOI divided by the property's value, expressed as a percentage. Owners use it to compare buildings and gauge whether a purchase price is reasonable.

Reserve fund

Money set aside for major repairs such as a roof or balcony. A funded reserve prevents special assessments and keeps a building financeable.

Leasing terms

Lease

In Quebec, residential leases use the mandatory form published by the Tribunal administratif du logement (TAL). It records the rent, the term, and the by-laws of the building.

Lease assignment and sublet

A tenant may assign a lease or sublet the unit; the landlord can refuse only for a serious reason and within the legal time limit. The two are distinct and carry different responsibilities.

Turnover

The work between one tenancy and the next — cleaning, repairs, and re-listing. Efficient turnover limits vacancy, the single largest avoidable cost for most owners.

Understanding these terms makes every conversation with a manager, lender, or contractor faster and more productive.