Landlord vs. Slumlord: What’s the difference?

*NOTE – This article was originally written in February of 2007 for the newsletter.

According to Webster’s Dictionary, a landlord is “the owner of property that is leased or rented to another.” As any longtime rental property owner can testify, being a landlord isn’t always a popular job. Tenants and neighborhood residents alike, often treat them with disdain.

However, all landlords are not created equal. Whether local resident or cross-county investor, quality landlords can do a lot of good in a neighborhood. Quality investment in the neighborhood works to the benefit of all.

But there is a seamy side to the landlord coin: the slumlord. Webster’s defines a slumlord as “a landlord who receives unusually large profits from substandard properties.” The actions of this unfortunate minority have done much to damage the image of quality landlords.
Rather than dissect the technical definitions of the terms landlord and slumlord, let’s look at reality. In the real world, even the best of us will have properties that are not in the best of condition. That is the nature of the business. It can sometimes take years to get a property in proper running order.

A lack of high-quality units and tenants does not make one a slumlord. A slumlord can even own high quality units and get high rents. There is one key ingredient to being a slumlord: not caring.

A slumlord acts as a parasite; sucking out every cent they can from their properties and tenants. Repairs are only addressed when absolutely necessary. The only thing they care about is keeping the profits coming. The long-term viability of the property, effect on the neighborhood and safety of their tenants is not even a consideration. Keeping the rent coming in is the only important thing.

A landlord shares, more of a symbiotic relationship with other parties. Profits are obviously a concern, but maintaining a quality product remains a vital necessity. They recognize that keeping high quality buildings attracts higher rents, tenant stability and political support. Tenants are happy because they live in a nice building run by a person that actually seems to care. The city and neighborhood are happy because the building benefits the neighborhood. The landlord is happy because they have an easy to run, quality investment, with little to trouble them. Everyone benefits.

Unfortunately, the distinctions between landlord and slumlord are not obvious to the masses. This generalization may prove difficult to impossible to remedy. The best that can be done to demonstrate that all landlords don’t deserve such a poor label is to lead by example. Keep those around you happy and you will able to laugh all the way to the bank and still sleep at night.