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Absentee owners outsource the management of their businesses or properties to third parties. They may not live in the same community and rely on property managers or executives to make decisions. This can lead to problems and criticism for contributing to community decline. Some must provide contact information to local government agencies.
An absentee owner is someone who owns a business or property but outsources the management of the business or property to a third party. In the case of absentee homeowners, those owners typically don’t even live in the same community as their buildings and may rely entirely on a professional property manager or property management company to make all decisions regarding tenants, repairs, and to maintenance. Similarly, an absentee business owner may buy a business primarily as an investment, but have little or nothing to do with its day-to-day operations.
In some communities, a significant portion of local real estate is owned by private individuals who rent out homes and units to tenants. In some cases, a landlord will simply rent out a house or unit on the property where he lives and take responsibility for finding and vetting tenants, collecting rents, and ensuring the building is in good condition. Some individuals, however, find this to be a lot of work and may not even want to live in the area where their property is located. In such cases, they may choose to live in a community far removed from where they own property and allow a business or individual to assume the normal duties of an owner. In some cases, a landlord may not even know or have any contact with his tenants.
It is also possible for a person to be the absentee owner of a business. In such cases, the owner may have inherited the business, made the money available to start the business, or perhaps even worked as a hands-on landlord for many years before retiring or taking other ventures. The business owner may rely on an individual manager, executives or even a franchise company to oversee the business and ensure its profitability. Some business owners have so many business interests that they are simply unable to engage in hands-on management and may have the finances to afford to hire high-quality employees who can be trusted to make good business decisions in consultation with the owner’s accountants of the company and lawyers.
One of the disadvantages of absentee ownership is that an owner of a business or rental property may not be aware of the problems until a tenant, worker or patron is adversely impacted through employee or management negligence . In particular, absentee owners of rental properties are often criticized for contributing to the decline of communities, as they have no real interest in the community and may allow the quality of their buildings and tenants to deteriorate over time. As a result, in some areas an absentee owner must provide local government agencies with information on how he can be located so that he can be held responsible for the behavior of those who manage his investments.
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