The absentee owner is an individual or a corporation that owns a particular property but does not reside in it and does not supervise it. The absentee owner usually relies on a property manager to supervise the investment.
The simplest form of absentee owners are those who buy vacation homes away from their primary residence and want someone to keep an eye on it while they are away. A more common version would be the landlord who has several rental properties but does not want to deal directly with the tenants. The owner could live close or far away from the properties, he usually holds a different job and doesn’t have the time and the knowledge to handle rentals.
The concept can scale all the way up to a pool of investors or companies which have hundreds of residential or commercial properties everywhere in the US and that need real estate professionals to manage them in order to obtain the best possible return.
The Stabilizing Role of the Absentee Owner
The absentee owner plays a key role in generating a stable income flow for Realtors and property managers since it needs 24/7 services which include most real estate activities: purchasing and selling, leasing, maintaining and remodeling.
In this special category of customers we find many foreigners who look for investment opportunities in the US and who rely on professionals to provide them with information on market conditions. And to assist them in the acquisition and marketing of each property.
The investors or the corporation can then focus on finding new investment opportunities and in building a portfolio without being bogged down in the day to day operation. For a local real estate professional, the addition of a pool of absentee owners can produce stability of income. These owners tend to always use the same agents to buy, sell, lease and manage their properties. With just a limited number of clients, the real estate professional can therefore build a personal portfolio which is fairly independent from the competition and the general market conditions.