Updated
Real estate and rental glossary
The Imperium Sky Realty real estate and rental glossary defines 33 terms used in Austin, Texas leases, listings and contracts, from concessions and net effective rent to the option period, IABS and the homestead exemption, checked against TREC and Texas Comptroller sources in September 2026.
General information only -- your lease or contract controls.
What rental terms should Austin renters know?
Austin renters should know the leasing terms that decide what an apartment really costs and what a lease requires, including concession, net effective rent, reletting fee, guarantor and security deposit.
Apartment locator. A licensed real estate professional who helps renters find apartments. In Texas, apartment locating requires a real estate license. Locators are typically paid by the property, not the renter.
Application fee. A fee a property charges to process your rental application, usually non-refundable.
Administrative fee. A one-time fee some properties charge at move-in or lease signing, separate from the deposit.
Concession (move-in special). An incentive a property offers to lease a unit -- such as reduced rent for part of the lease, a waived fee or a lower deposit.
Guarantor (co-signer). A person who agrees to pay the rent if the tenant does not. Properties set their own guarantor rules.
Guest card. The record a property creates when you first contact or visit it. Properties often use it to decide which locator, if any, referred you.
Lease term. The length of the lease, from start date to end date.
Net effective rent. The average monthly rent after concessions are spread over the full lease term. Useful for comparing a "weeks free" special with a lower monthly rent.
Normal wear and tear. Ordinary deterioration from everyday use. A landlord may not deduct it from your security deposit (Texas Property Code sec. 92.104(b)).
Prorated rent. Rent for a partial month, charged when a lease starts or ends mid-month.
Reletting fee. A fee some leases charge if you move out early, to cover the cost of re-leasing the unit. Check your lease for the exact terms.
Renter's insurance. A policy that covers your belongings and personal liability. The property's insurance generally does not cover your things.
Security deposit. Money held by the landlord against unpaid rent or damage beyond normal wear and tear, refunded or itemized after move-out.
Sublease. Renting your unit, or part of it, to someone else during your lease. Most leases require the landlord's written permission.
What home-buying and selling terms are used in Texas?
Texas home buyers and sellers will meet terms such as option period, earnest money, buyer agreement, homestead exemption, MUD and title company, several of which are specific to Texas contracts and property tax rules.
Appraisal. A licensed appraiser's opinion of a property's value, usually ordered by the lender.
Appraisal district. The county office that values property for tax purposes and handles exemptions such as the homestead exemption.
Broker price opinion (BPO) / comparative market analysis (CMA). An estimate of a property's likely sale price prepared by a real estate license holder. In Texas it must state that it is not an appraisal.
Buyer agreement. The written agreement between a buyer and a brokerage that sets out services, compensation and term. Texas requires one before an agent shows a buyer a home.
Closing costs. Fees and charges paid at closing -- lender, title, recording, prepaid taxes and insurance, and others.
Contingency. A condition in a contract that must be met for the sale to go forward, such as financing.
Earnest money. A deposit the buyer makes when a contract is signed, held by the title company and generally credited toward the purchase at closing.
Equity. The market value of a home minus what is owed on it.
HOA (homeowners association). An association that manages shared areas and rules in some neighborhoods and charges dues.
Homestead exemption. A reduction in the taxable value of a home that is the owner's principal residence. Apply with the county appraisal district.
MUD (municipal utility district). A special district in parts of Texas that provides water, sewer or drainage and may levy its own property tax.
Option period / option fee. In Texas contracts, a negotiated period during which the buyer, having paid an option fee, may terminate the contract for any reason.
Pre-approval. A lender's conditional commitment to lend up to a stated amount, based on a review of your finances.
Seller's disclosure notice. A form in which a seller discloses known conditions of the property to the buyer.
Title company. The company that researches the property's title, issues title insurance and typically handles the closing in Texas.
Which Texas real estate notices will you see?
Texas brokerage websites and transactions carry two Texas Real Estate Commission notices, Information About Brokerage Services (IABS) and the Consumer Protection Notice, alongside an equal housing opportunity statement.
IABS (Information About Brokerage Services). A Texas Real Estate Commission notice explaining the ways a brokerage may work with you and the duties it owes. Brokerage websites link to it.
Consumer Protection Notice. A Texas Real Estate Commission notice explaining how to file a complaint and how the Commission protects consumers. Brokerage websites link to it.
TREC. The Texas Real Estate Commission, the state agency that licenses and regulates real estate brokers and sales agents.
Equal housing opportunity. The principle, backed by federal, state and local fair housing laws, that no one may be denied housing or treated differently because of a protected characteristic.
Glossary questions
What is a locator fee?
A locator fee is the commission an apartment property pays a licensed apartment locator when a renter the locator referred signs a lease; Imperium Sky Realty's Austin apartment locating charges the renter nothing.
What does "weeks free" mean on an Austin apartment lease?
"Weeks free" on an Austin apartment lease is a concession in which the property waives rent for a set number of weeks, applied as the lease specifies; spreading that credit over the full term gives the net effective rent.
What is a homestead exemption in Texas?
A Texas residence homestead exemption lowers the taxable value of a home that is the owner's principal residence; the owner applies with the county appraisal district, generally before May 1 (Texas Comptroller).
What is the IABS form in Texas?
The IABS, or Information About Brokerage Services, is a Texas Real Estate Commission form that explains the ways a brokerage can work with a client and the duties each role carries; Texas brokerage websites must link to it (22 TAC 531.20).
Questions about a term you saw in a lease or listing? Ask us.