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What is a Landlord?

A landlord is someone who owns and rents out real estate – such as homes, condos, apartments, and land – to tenants with the purpose of earning a profit.

Why is this term important?

Landlords are important because they offer an option for those that may not want, or be able, to purchase a property on their own. 

Landlords have a legal obligation to ensure all relevant laws and regulations regarding their rental property are followed. This includes laws that govern tenant rights, security deposits, notice periods, rent increases, and property maintenance.

Some landlords may also act as real estate investors, using their existing properties as leverage to purchase additional properties and build their portfolio. This removes available properties from the real estate market and lessens the supply available to homebuyers looking to purchase a home to live in.

Here is an example:

Someone may become a landlord when they, while living in a condo, decide to purchase a detached home. Then, instead of selling their condo, they choose to keep it and rent it out while they live in their detached property. 

Other landlords may own several separate properties and either manage them personally, or hire a property management company to maintain the buildings and communicate with tenants.

Related Terms

Future Value

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