Rental property refers to a residential or commercial property that is leased or rented out by an owner, investor or landlord to tenants in exchange for regular payments known as rent. This type of property can include single-family homes, apartments, condos, townhouses and other types of real estate that are used solely for the purpose of generating income through leasing. The ownership and management of rental properties is often a significant source of investment income for individuals or companies, with the potential to generate steady monthly cash flow while also appreciating in value over time.