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Alandlord is the owner of property such as a farm,house,apartment,condominium, land, orreal estate that isrented orleased to an individual or business, known as atenant (also called alessee orrenter). The term landlord applies when ajuristic person occupies this position. Alternative terms includelessor andowner. For female property owners, the termlandlady may be used. In theUnited Kingdom, the manager of apub, officially alicensed victualler, is also referred to as the landlord/landlady. In political economy, landlord specifically refers to someone who owns natural resources (such as land, excluding buildings) from which they deriveeconomic rent, a form ofpassive income.[1]
The concept of a landlord can be traced to thefeudal system ofmanoralism (seignorialism), wherelanded estates were owned byLords of the Manor (mesne lords). These lords were typically members of the lower nobility who later formed the rank ofknights during the high medieval period. They held their fiefs throughsubinfeudation, though in some cases land was directly subject to members of higher nobility, such as theroyal domain owned directly by a king, or theHoly Roman Empire'simperial villages which were directly subject to the emperor. This medieval system evolved from thevillas andlatifundia (large, peasant-worked farmsteads) of theRoman Empire.[2] In modern times, the term "landlord" refers to a property owner who chargesrent to a tenant.[3]
Arental agreement, orlease, is thecontract that defines the terms of a rental arrangement. These terms include the rental price, penalties for late payments, the duration of the rental or lease, and the notice period required before either party can cancel the agreement. Generally, responsibilities are divided as follows: homeowners handle repairs and property maintenance, while tenants keep the property clean and safe.
Many property owners hireproperty management companies to manage rental details. These companies typically advertise the property, show it to potential tenants, negotiate and prepare written leases or licence agreements,[4][5] collect rent, and perform necessary repairs.
In theUnited States,residential landlord-tenant disputes are primarily governed bystate law rather thanfederal law, particularly regardingproperty andcontracts. State laws, and sometimes city or county laws, establish the requirements foreviction. Generally, landlords can only evict tenants before a lease expires for specific legally valid reasons, though they can typically end the rental relationship without giving a reason when the lease term concludes.Some jurisdictions have enactedrent control orrent regulation laws that limit how much landlords can charge. There is also animplied warranty of habitability that requires landlords to maintain safe, decent, and habitable housing with basic safety features like smoke detectors and secure doors.Most common disputes arise from either the landlord failing to provide services or the tenant failing to pay rent—with service issues sometimes leading to payment problems. As typically explained in the lease, withholding rent constitutes justifiable grounds for eviction.[6] City ordinances can also influence rental policies, such as the increasing adoption ofsource-of-income anti-discrimination rules.[7][8]Tenants unions can also affect housing policy through political organization.[9]
InCanada,residential homeowner–tenant disputes are primarily governed byprovincial law regardingproperty andcontracts.[10] Provincial law sets the requirements foreviction of a tenant. Generally, there are a limited number of reasons for which a landlord can evict a tenant. Some provinces have laws establishing the maximum rent a landlord can charge, known as rent control, orrent regulation, and relatedeviction. There is also animplied warranty of habitability, whereby a landlord must maintain safe, decent and habitable housing, meeting minimum safety requirements.
Private sector renting is largely governed by many of theLandlord and Tenant Acts, in particular theLandlord and Tenant Act 1985 which sets bare minimum standards in tenants' rights against their landlords. Another key statute is theHousing Act 2004. Rents can be freely increased at the end of a usual six-month duration, on proper notice given to the tenant. A Possession Order under the most common type, theassured shorthold tenancy (AST) is usually obtainable after eight weeks/two months of unpaid rent, and at the court's discretion after serving the tenant with aSection 8 notice (under theHousing Act 1988 as amended) for a lesser period for all assured tenancies, and on other grounds which defer to the landlord's ownership of the property. If the tenancy is an AST then any possession order will not take effect until six months has passed into the initial tenancy. A tenancy of someone who has been in occupation since before 15 January 1989 usually, if not a shorthold from the outset following their inception from 1980 onwards, may be a "regulated tenancy" with many more rights, especially under theRent Act 1977 andProtection from Eviction Act 1977, introduced by theThird Wilson ministry.[11]
Eachhouse in multiple occupation, a unit the law does not regard it as a single household having more than three tenants, is subject to enhanced regulations including theHousing Act 2004. A council-issued licence to be a landlord of such a unit is always required in some local authorities (in others, limited to the larger statutory examples).
Tenancies lasting more than a couple of years are typically called leases and tend to be extensive; any lease exceeding seven years must be registered as a new leasehold estate.[12] These arrangements follow fewer of the above rules and, in longer examples, are deliberately more similar to full ownership than conventional tenancies. They rarely require substantialground rent.
Current law doesn't regulate significant break/resale charges or prevent leasehold house sales; following widespread consultation in the 2010s, certain reforms are being drafted. Generally, legislation allows lessees (tenants) to join together to gain theRight to Manage and the right to purchase the landlord's interest (collective enfranchisement). Individually, tenants can extend their leases for a new, smaller sum ("premium"), which typically won't be demanded or recommended every 15–35 years if the tenants have enfranchised. Notice requirements and forms tend to be strictly enforced.
In smaller properties, tenants may qualify for individual enfranchisement based on a simple mathematical division of the building. Statute law from 1925 implies into nearly all leases (tenancies at low rent with an initial large sum or "premium") that they can be sold (assigned) by the lessee; this reduces any restrictions to ones where the landlord may apply "reasonable" vetting standards without causing significant delays. This is commonly known as the "statutory qualified covenant on assignment/alienation."
In the diminishing area ofsocial housing, tenants can exceptionally acquire theRight to Buy over time, which provides a fixed discount on the market price of the home.
For commercial properties, much of the law regarding disputes and basic responsibilities stems from freedom of contract principles in thecommon law, including implied terms from precedent decisions in wide-ranging case law, such as the meaning of "good and substantial repair." Implied principles include "non-derogation from grant" and "quiet enjoyment."
All business tenants (lessees) must decide whether to contract in or outside of Part II of theLandlord and Tenant Act 1954, which provides "business security of tenure." If not specifically excluded, it generally applies by default. This "security of tenure" is expressly subject to common reasons and associated mechanisms for a landlord to reclaim the premises.
When a landlord sells a block where a qualifying tenant occupies more than 50%, the tenant should receive theright of first refusal to buy the block at the asking price. As in most jurisdictions, the law strictly enforces lease terms regarding unlawful subletting and assignment, potentially resulting in financial and property loss if violated.
Unlike residential tenancies, failure to pay a commercial rent demand can result in direct landlord repossession ("peaceable re-entry") through a commercial landlord's right to use "self-help" evictions.[13] The practice of taking a tenant's goods without a court-issued warrant (flowing from a court order or outstanding tax demand) (distress) has been banned.[14]
InMexico, landlord-tenant relationships are governed primarily by state-specificCivil Codes, resulting in variations in property regulations across the country. Mexican property laws tend to favor tenants, makingevictions notably difficult for landlords upon lease expiration. If a landlord does not provide timely notice before the lease termination, the lease may automatically transition into an indefinite-term agreement, complicating eviction procedures further.
Security deposits in Mexico are generally negotiable between landlords and tenants without a legally mandated maximum, though it is common practice for landlords to request a deposit equivalent to one month's rent. Rent increases are regulated in certain jurisdictions, often restricted to no more than 85% of the increase in the general minimum wage for the region or based on aconsumer price index agreed upon by both parties.
Eviction procedures in Mexico are strictly regulated, requiring judicial intervention that can involve significant time, effort, and legal expenses for landlords. If a tenant refuses to vacate following an eviction order, landlords may need judicial support, including police assistance, to enforce the eviction. The eviction process duration can vary significantly, often lasting several weeks or longer if tenants file appeals or request extensions.[15]
The concept ofland ownership is not universal. ManyNative American tribes did not view land as acommodity whereas many Europeans colonists did.[16] Ownership of land in thepre-colonial Americas varied from group to group, but many Native American societies had communal and individual land.[17]
Some European scholars were also skeptical of land ownership, such asAdam Smith andHenry George. Smith said about landlords, "As soon as the land of any country has all becomeprivate property, the landlords—like all other men—love to reap where they never sowed, and demand a rent even for their land’s natural product."[18] George believed landbelonged to everyone and supported a public tax oneconomic rent, which he believed would be so profitable that all other taxes would be abolished.[19][20]
Another common criticism of landlords is the tendency formonopolization. Without regulation, corporations are able to use their purchasing power to buy up housing stock. In a single Atlanta zip code, up to 90% of the houses sold between January 2011 and June 2012 were purchased by instituitional investors.[21] Corporate landlords are able to buyforeclosed houses and rent the house back to the original owner.[22] Another form of corporate monopolization and housing arecompany towns, where one corporation owns the vast majority of housing and businesses. Since these corporations employ most of the residents of the town, they are able to raise rent and lower wages during arecession.[23][24]
Renters (tenants or other licensees) at the lowest end of the payment scale may be in social or economic difficulty and suffer significantsocial stigma as a consequence. Due to lack of alternative options, such renters are often the victims of unscrupulous owners of unsafe and decrepit properties who neglect their responsibility to maintain the property.
The terms "slumlord", "slum landlord", or "ghetto landlord" is used to describe landlords of large numbers of such properties, often holding a virtual local monopoly. Public improvement or major private investment can improve such areas. In extreme situations, governmentcompulsory purchase powers in many countries enableslum clearance to replace or renovate the worst of neighbourhoods.
Rent Gouging
Rent gouging refers to the practice of raising rent prices too high or to an unconscionable level. In response, some states and municipalities have passed legislation capping the amount landlords can increase the rent, also known asrent regulation.[25]
The term 'accidental landlord' is used for landlords who do not initially intend to become a landlord but have a spare property (from inheriting it, moving in with a partner, or unable to sell when moving), and then choose to lease the property instead of selling it.[26][27]
Rental properties can be paid for by the tenant on whatever basis is agreed upon between the landlord and the tenant (more frequently than weekly or less than yearly is almost unheard of), which is always included in the lease agreement (preferably for both sides in writing). It should be one of the primary factors a tenant considers before moving in.[28]
The incentive is to obtain a good rental yield (profit) and prospect of property price inflation. The landlordprofit motive conflicts with the locally varying rights of tenants, maintenance and administrative duties of landlords, and keynote risks (tenant disputes, damage, neglect, loss of rent, insurance unavailability/disputes, economic slump, increased rate of interest on any mortgage, and negative equity or loss of investment). Net income (yield) and capital growth fromletting (renting out) particularly in leveragedbuy to let, is subject toidiosyncratic risk, which is considered objectively intensified for a highlyleveraged investor limited to a small number of similar profile homes, of narrow rental market appeal in areas lacking economic resilience.[29]
Landlords or their agents commonly collect security deposits from tenants, and in some jurisdictions may also charge move-in or administration fees. The amount of the security deposit can significantly impact a tenant's decision to rent a property; a high deposit acts as a barrier to entry, while a lower deposit makes a property more attractive in competitive rental markets. Security deposits are rarely negotiated during pre-tenancy discussions. By law, security deposits are typically intended to cover unpaid rent, property damage, or cleaning/repair costs that result from the tenant's occupancy.[30]
In certain jurisdictions, traditional security deposits or certain fees may be prohibited by law. Alternative approaches include landlords incorporating potential losses into the monthly rent or using regulated bond systems where a specified sum is held by an authorized third party (such as licensed real estate agents) rather than the landlord directly. By law, security deposits are typically intended to cover unpaid rent, property damage, or cleaning/repair costs that result from the tenant's occupancy.
In the United Kingdom the owner and/or manager of a pub (public house) is usually called the "landlord/landlady" or "publican", the latter properly the appellation of a Romanpublic contractor ortax farmer. In more formal situations, the term used islicensed victualler or simply "licensee".[31]
TheLicensed Trade Charity, formed in 2004 from the merger of the Society of Licensed Victuallers and Licensed Victualler's National Homes,[32] exists to serve the retirement needs of Britain's pub landlords. The charity also runs three private schools inAscot andReading inBerkshire andSayers Common inSussex. As well as having normal full fee paying students,Licensed Victuallers' School in Ascot provides discounted education prices for the children of landlords and others in the catering industry.
There are significant associations of landlords in various countries. These associations/societies provide support for their members in facing a range of issues[33]by providing a means of mutual support, and also lobby relevant authorities and parliament with regard to the details and implementation of residential and some commercial tenancy legislation.
Numerous landlord associations exist inAustralia. These associations should be distinguished from the class of property owner associations representing the 'big end of town' — the owners of major buildings and very large residential housing complexes, such as theProperty Council of Australia.[34]
National Residential Landlords Association (NRLA) has now formed from a merger of the two following organisations as of 31/3/2020:[40][better source needed]
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