What is an Absentee Landlord?
An absentee landlord is a person, corporate body or state entity that has title to a property, is entitled to and rents out properties but is not resided on or close to the property. The landlord keeps the home as an income property which allows him/her to continue his/her ownership while earning a monthly income. The property that has been rented out may also be one which the owner, later on, wishes to return to and move in again at a later date. These types of income properties contribute to several tax benefits for the person who owns the real estate. For example, some travel costs incurred in maintaining or preparing the property for different reasons are tax deductible. However, the owner has to report and pay taxes for any income that comes from the rental properties. Being an absentee landlord can include some risks for the property owner. For instance, some tenant’s misbehavior or damages due to carelessness can pose serious issues. Residential properties that are owned by absentee landlords are usually in a poor state of repair. Some absentee landlords usually hire a property manager or a management company to maintain the property and collect rents from tenants.