Absentee Landlord

AAA

DEFINITION of 'Absentee Landlord'

An individual or entity that rents or leases real estate to another party, but does not reside on the premises. An absentee landlord could be anyone from a local investor to an overseas conglomerate. Regardless of the size of their operations, absentee landlords generally seek to generate rental income from their holdings. Absentee landlords with substantial holdings usually employ management companies to maintain their properties and collect rental payments.

INVESTOPEDIA EXPLAINS 'Absentee Landlord'

Absentee landlords are the norm, rather than the exception, for commercial properties. The term "landlord" may indicate that the individual or entity's real estate holdings are likely to be sizable. An absentee landlord may also have a long-term perspective with regard to real estate investments, with ongoing rental income rather than capital appreciation being the primary investment objective.

RELATED TERMS
  1. Owner-Occupant

    A resident of a property who also holds the title to that property. ...
  2. Month-To-Month Tenancy

    A type of rental agreement. Month-to-month tenancy is based upon ...
  3. Lease

    A legal document outlining the terms under which one party agrees ...
  4. Land Lease Option

    An option within a lease contract that grants the lessee the ...
  5. Landlord

    A real estate owner who rents or leases land or a building to ...
  6. Discounted Payoff

    The repayment of a loan in an amount that is less than the principal ...
Related Articles
  1. Home & Auto

    To Rent Or Buy? The Financial Issues

  2. Taxes

    A Tax Primer For Homeowners

  3. Budgeting

    Mortgages: How Much Can You Afford?

  4. Options & Futures

    The REIT Way

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center