Slumlord

A slumlord (or slum landlord) is a derogatory term for a landlord, generally an absentee landlord with more than one property, who attempts to maximize profit by minimizing spending on property maintenance, often in deteriorating neighborhoods. Severe housing shortages allow slumlords to charge higher rents, and when they can get away with it, to break rental laws.

As many of these neighborhoods are often populated by poor minorities, the term "ghetto landlord" has also been used. A "retail slumlord" is one who keeps a shopping mall in a bad shape until the government buys or confiscates it.

The phrase slumlord first appeared in 1953, coined by Newsday Reporter Edward G. Smith, though the term slum landlord dates to 1893.

Traditionally, real estate is seen as a long-term investment to most buyers. Especially in the developed world, most landlords will properly maintain their properties even when doing so proves costly in the short term, in order to attract higher rents and more desirable tenants in the long run. A well-maintained property is worth more to potential buyers.

In contrast, slumlords usually do not contract with property management services, and do very little or no maintenance on their property (ordinarily, just enough to meet minimum local requirements for habitability), and in turn offer low rent rates to lure tenants who will not (or cannot) pay high rent (and/or who might not pass background checks should these be required to live in the higher rent areas). Slumlords of this kind typically prosecute many evictions.

It is not uncommon for slumlords to buy property with little or no down payment, and also to receive rent in cash to avoid disclosing it for tax purposes, providing lucrative short term income. (Thus, in the U.S., slumlords would normally not participate in government-subsidized programs such as Section 8, due to the requirements to report income and keep properties well-maintained.) A slumlord may also hope that his property will eventually be purchased by government for more than it is worth as a part of urban renewal, or by investors as the neighborhood becomes gentrified. In Johannesburg, regions suffering from urban decay frequently have landlords the government believes exploit their tenants, making them stay in buildings that don't meet fire codes. In Britain, local councils deal with private landlords; without adequate scrutiny this can result in landlords being able to fill properties below rental code with subsidized tenants.

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