Posted in Finance, Accounting and Economics Terms, Total Reads: 61
Definition: Absentee Landlord
Absentee Landlord refers to a person who has rented out his property but does not actually lives on the premises. The term absentee here refers to the landlord who is unavailable to take care of the regular take care requirements of the property. While most people think that Absentee landlord avoids looking at the proper maintenance of the property, actually the landlord may choose to or not choose to take care of the property. Thus the onus of maintenance falls onto the hands of the tenant.
The terms is used most often to signify the landowner who has only monetary/economic interest in the property and who pays little or no attention to the state of the property. In reality, many owners do not stay on the property building, but that does not means they are doing nothing about the property. They solve the tenant problems regularly. In fact tenant may also feel independence in such an arrangement and may actually be happier because if the landowner stays on the property building, he may restrict the tenant to a number of activities which may seem unwanted to him.
This is a growing concept in developing countries, where the people going abroad rents out the property in their own country and draw regular income out of the rent. They may consider the property as an economic asset and may try to maintain minimum of standards in relation to the property. The rest is taken care by the tenant himself.
For Example: If a person has rented his house in India to a tenant and he himself stays outside India will be called an Absentee Landlord. He will not be able to take care of the daily requirements of maintenance and other activities as required by the property.