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Property is a real estate object. It can be a land plot with anything permanently attached or built on it like a house, garage or a group of buildings, multistory appartment building or even just a single apartment. Basically it can be anything that you own and wish to rent in parts or whole - even a business center.

An entity is part of the property. It can be anything depending on your property type and requirements.

• You own an apartment, but are renting rooms separately to different tenants. In that case each of such rooms can be a separate entity.
• You own a building what has numerous apartments, garage or even commercial area. In this case each apartment, garage and commercial area can be a separate entity.
• An entity can be anything - even a parking spot.

There might be cases when you don't need to divide property into entities. For example, if you own a whole apartment that you wish to rent.