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Landlord

Written By
Paul Tracy
Updated August 12, 2020

What is a Landlord?

A landlord is an individual who owns real estate that he or she leases to renters.

How Does a Landlord Work?

Landlords may own either residential or commercial properties. They lease the properties to families or companies in return for monthly rent. As the owning party, a landlord's obligations include structural maintenance and repairs as well as property tax payments (typically built into the rent).

For example, suppose Bob owns a three-bedroom apartment that he chooses to lease for rent. A family enters into a lease contract with Bob, the landlord. The family agrees to pay him $1,000 each month for a specific length of time (usually one year) in return for the right to live in the apartment. 

Why Does a Landlord Matter?

By leasing their properties, landlords can generate cash flow that accompanies the appreciation in their properties' market value.

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