Posted in Finance, Accounting and Economics Terms, Total Reads: 185
Definition: Absentee Owner
An absentee owner is a individual who is an owner of a house or a property, but who doesn’t manage the same property. An absentee owner himself doesn’t reside in the property that he owns but he tries to get as much returns as possible by renting his property.
An absentee owner can be a single individual, a partnership or an organization/company as a whole who earn large assets in the form of land, real estate etc. The main aim of an absentee owner is to generate as much return on the assets as possible by renting it. Though they enjoy various tax relaxations by being an absentee owner, they also face a risk of making losses in their transactions.
For example, a person who owns a villa and gives it on rent but he himself doesn’t reside in it can be called as an absentee owner.