Definition: Absentee Owner – An owner who does not live in/on their property; most use the services of property management companies
An absentee landlord, or absentee property, generally refers to owners of investment properties. Absentee owners do not reside in the location of their investment property and will typically live outside of the property’s local economic region; however, they receive income from real estate. Landlords and homeowners who lease their homes to tenants are often considered absentee landlords.
The term absentee landlord has been given a bad rap, in terms of its social connotation, due to selected highly publicized stories about slum lords in the media. The truth is that there are very few so-called slumlords compared to the number of landlords who are genuinely concerned, involved and knowledgeable about the living conditions of their tenants. Be sure to read consumer reports about your landlord and the property you’re interested in leasing…if the information exists. There’s nothing worse than moving into a house, settling in, and then realizing the landlord reneges on his end of the bargain.
Historically, absentee property has had important social and political influences for a number of European nations: pre-revolutionary France and Ireland experienced exploitation by the wealthy landowners of their nations. Unfortunately, absentee property remains a crucial factor for many developing nations. The issue primarily revolves around concerns that absentee owners are depleting local wealth by not allowing the money associated with their profitable properties to be reinvested within the economy in which the property is located.
