Absentee Owner

DEFINITION of 'Absentee Owner'

An individual who owns a piece of real estate but does not live in it. An absentee owner may also be an entity such as a corporation or real estate investment trust (REIT). The real estate held by an absentee owner can range widely - while an individual may own a single condominium or apartment, a corporation may own a large chunk of real estate such as an apartment building or shopping mall. The primary motivation of absentee owners is to generate returns from their real estate holdings in the form of rental income and potential capital appreciation.

BREAKING DOWN 'Absentee Owner'

The proportion of absentee owners in the population at large is directly correlated to the degree of real estate speculation prevalent in the economy. A strong property market and economy coupled with relatively low interest rates may result in a higher proportion of absentee owners, while a sluggish market and economy may limit the number of absentee owners.

RELATED TERMS
  1. Owner-Occupant

    A resident of a property who also holds the title to that property. ...
  2. Investment Real Estate

    Real estate that generates income or is otherwise intended for ...
  3. Absenteeism

    The habitual non-presence of an employee at his or her job. Possible ...
  4. Private Equity Real Estate

    A Definition of "Private Equity Real Estate" and how it applies ...
  5. Estate Planning

    The collection of preparation tasks that serve to manage an individual's ...
  6. Estate Freeze

    An asset management strategy whereby an estate owner aims to ...
Related Articles
  1. Professionals

    The Causes And Costs Of Absenteeism

    Playing hooky to play golf may feel harmless, but the accumulated effect of absenteeism hurts businesses' bottom line. This article looks at the causes of absenteeism, the costs of lost productivity ...
  2. Personal Finance

    How to Invest in Real Estate Without Buying Property

    Investing in real estate can require more capital than most investors have available, but there are options to invest in real estate for less.
  3. Personal Finance

    Key Reasons To Invest In Real Estate

    There has been a lot of negativity over the real estate sector since 2008. Here are the reasons why you should be investing in it.
  4. Managing Wealth

    4 Key Factors That Drive The Real Estate Market

    Whether you are investing directly or indirectly in property, you need to know the factors that affect its value.
  5. ETFs & Mutual Funds

    At Look at REITS vs. Real Estate Mutual Funds (ESRT, TRREX)

    REITs and real estate mutual funds have their differences, but they both offer liquidity and easy access to diversified real estate assets.
  6. Personal Finance

    How Much Money Do You Need To Invest In Real Estate?

    Here's a rundown of how much investors need to get started in real estate investing.
  7. Personal Finance

    How To Get A House For Free

    There is a legal way to get a house for free - if you're willing to spend the time and effort.
  8. Investing

    Exploring Real Estate Investments: Introduction

    By Ian Woychuk, CFA Chances are, when you think about investing in real estate the first thing that comes to mind is your home. For many people, their home is the single largest investment they ...
  9. Investing

    4 Key Factors That Drive The Real Estate Market

    The size of the real estate market make it an attractive sector for many investors, but understanding the factors that drive it is essential.
  10. Personal Finance

    Invest In Real Estate With $1,000 (Or Less)

    Here are some options to get you started in real estate for a fraction of what it would cost to buy an actual property.
RELATED FAQS
  1. How can I make equity investments in real estate?

    Invest in real estate equity through buying and selling real property or through other more liquid investments like real ... Read Answer >>
  2. Why can real estate be a good addition to a traditional stock and bond portfolio?

    Discover why real estate can be a good addition to a traditional stock and bond portfolio. Real estate is affected by economic ... Read Answer >>
  3. What are the differences between investing in real estate and stocks?

    Invest in real estate by purchasing physical property or buildings, or invest in stocks by buying a claim to a company and ... Read Answer >>
  4. How does the risk of investing in the real estate sector compare to the broader market?

    Learn about the high volatility of the real estate sector and how conservative investors gravitate toward real estate investment ... Read Answer >>
  5. How much of the global economy is comprised of the real estate sector?

    Find out how much of the global economy consists of the real estate sector, including output from commercial and residential ... Read Answer >>
  6. What are the most common mutual funds for investing in the real estate sector?

    Obtain information about some of the most popular mutual funds that investors can consider for investing in the real estate ... Read Answer >>
Hot Definitions
  1. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  2. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  3. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  4. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  5. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  6. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
Trading Center