What Is a Lessor in Real Estate?

A lessor is the property owner or landlord who grants a lease to a tenant (lessee). The lessor allows the tenant to occupy or use the property in exchange for rent under the terms of a lease agreement.

Lessor: Simple Definition

A lessor is the owner who leases out real estate. The lessor provides the property and sets the terms of the lease, while the lessee pays rent and agrees to follow those terms.

In residential real estate, a lessor is commonly called a landlord.

How a Lessor Works in Real Estate

A lessor enters into a lease agreement with a tenant. This contract outlines the responsibilities, payments, and rules governing the property.

Typical lessor responsibilities include:

  • Maintaining the property in habitable condition
  • Making necessary repairs
  • Complying with housing laws and safety codes
  • Respecting tenant privacy and providing proper notice before entry

In return, the lessor receives rent payments and retains ownership of the property.

Lessor Rights and Responsibilities

Lessors have specific legal rights designed to protect their property and investment, including the right to:

  • Receive rent on time
  • Enforce lease terms
  • Enter the property with proper notice
  • Seek eviction for violations of the lease

At the same time, lessors must:

  • Provide a safe, habitable property
  • Follow state and local landlord-tenant laws
  • Avoid discriminatory practices
  • Return the security deposit in accordance with the law

Examples of a Lessor

  • A homeowner renting their condo to a tenant.
  • A commercial building owner leasing office suites to businesses.
  • A landowner leasing acreage for farming or ranching.
  • An investor renting a single-family home under a one-year lease.

In each case, the lessor owns the property and leases it to a lessee.

Lessor vs. Lessee

These two terms describe opposite roles in a lease:

  • Lessor: The owner or landlord who leases out the property.
  • Lessee: The tenant who rents and occupies the property.

A lease agreement creates a legal relationship between the lessor and lessee, defining each party’s rights and obligations.

Lessor Risks and Considerations

  • Potential nonpayment of rent
  • Property damage by tenants
  • Legal compliance requirements
  • Disputes over security deposits
  • Eviction costs if lease terms are violated

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