Lessor
Definition and meaning of Lessor in real estate.
A lessor is the legal owner of a property who grants the right of use and occupancy to another party under a lease agreement. The lessor is commonly referred to as the landlord or property owner and receives regular rental payments in exchange.
In more detail
The lessor retains the underlying ownership of the property, which is known as a fee simple interest, and holds a reversionary right to regain possession when the lease ends. Lessors are responsible for maintaining the property in a habitable condition, making major repairs, and complying with local housing codes.
They also have the right to collect rent, enforce property rules, and seek eviction if the tenant violates the lease terms. Understanding the legal obligations of a lessor is crucial for real estate investors who manage rental portfolios.
Key facts
| Category | Leasing & Property Management |
|---|---|
| Also known as | Landlord, property owner, housing provider |
| Applies to | Residential, commercial, and industrial rental properties |
| Watch out for | Legal liability and maintenance obligations under housing laws |
A real estate investor purchases a duplex and rents out both units, serving as the lessor and collecting rent checks from the tenants each month.
Frequently asked questions
What is the difference between a lessor and a lessee?
A lessor is the property owner who rents out the real estate. A lessee is the tenant who rents the property and pays the lessor.
Can a lessor enter the rented property at any time?
No, lessors must typically provide advance notice, such as twenty-four or forty-eight hours, before entering a tenant's home, except in emergencies.
Related terms
Sources & references
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