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Slumlord
From Wikipedia, the free encyclopedia

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.[1][2]

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.[3]

Contents
1 Operation
1.1 Black market renting
2 Reactions
3 See also
4 References
5 External links

Operation
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
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believes exploit their tenants, making them stay in buildings that don't meet fire codes.[4] 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.[5]

Some slumlords are more interested in profit acquired through property flipping, a form of speculation, rather than
rental income. Slumlords with this "business model" may not maintain their properties at all or pay municipal
property taxes and fines they tend to accrue in great quantities. Knowing it will take years for a municipality to
condemn and seize or possibly raze a property, the slumlord may count on selling it before this happens. Such
slumlords may not even keep up with their mortgage payments if they become equity-rich but cash-poor or if they
feel they can sell the property before it goes into foreclosure and is taken by their lender, typically a six to eight-
month process at the quickest.

Black market renting

In places where with rent control and legal protection of tenants, some landlords may rent out properties illegally.
For instance, in the UK there's illegal subletting of social housing homes where the tenant illegally rents out the home
at a higher rent.[6] In Sweden, rental contracts with regulated rent can be bought on the black market,[7] either from
the current tenant or sometimes directly from the property owner. Specialised black-market dealers assist the
property owners with such transactions.[8]

Reactions
People who have negative opinions of slumlords, hold them primarily responsible for causing declining local
property values and for the eventual creation of whole neighborhoods of shanty buildings. Some say slumlords leech
away the "wealth" of the poor with little regard to the future generations or the welfare of their current tenants. In
effect, slum lording is a force considered exactly counter to gentrification. Whereas gentrification describes the
result of a plurality of local landlords making decisive improvements to rental properties which add value to their
rental units, justify hiking rent rates, eliminate less-affluent tenants and generally raise neighborhood property values,
slum lording naturally results in a gradual general decay in living conditions, public safety, neighborhood prestige and
ultimately property values.

Those defending slumlords assert that such property owners of poorly maintained declining-value properties offer a
"valuable service" for those who care more about price than quality. Economist David Osterfield wrote, "... the
slumlord, regardless of his motives, helps the poor make the best of their bad situation."[9]

See also
Landlord harassment

References

1. Dylan Welch (18 Jul 2014). "Slumlords cramming 14 people into two-bedroom flats in illegal accommodation
network" (http://www.abc.net.au/news/2014-07-17/illegal-accommodation-network-targets-backpackers-and-stud
ents/5605572). 7.30. Australian Broadcasting Corporation.
2. Miles Godfrey (5 July 2014). "Sydneys slum dodge landlords: Inside our citys worst accommodation rentals" (htt
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6/23/2017 Slumlord - Wikipedia

p://www.dailytelegraph.com.au/news/nsw/sydneys-slum-dodge-landlords-inside-our-citys-worst-accommodation-r
entals/story-fni0cx12-1226978318360). Daily Telegraph.
3. Online Etymology Dictionary (http://www.etymonline.com/?term=slum)
4. "Strategies to stop slumlords" (http://www.joburg.org.za/index.php?option=com_content&view=article&id=6531&
catid=88&Itemid=266). Joburg.org.za. City of Johannesburg. 20 April 2011.
5. Dispatches,Landlords from Hell, Channel 4, 5 December 2011
6. Tracking down England's council house sublet cheats (http://news.bbc.co.uk/panorama/hi/front_page/newsid_947
4000/9474045.stm), Panorama, BBC, 4 May 2011
7. 'Egalitarian' Stockholm rents feed black market (http://www.thelocal.se/20100830/28666), The Local, 30 Aug
2010
8. Hyrestvan r din fr 300 000 (http://www.svd.se/nyheter/inrikes/svd-avslojar-systematisk-forsaljning-av-svartk
ontrakt_8146104.svd) (in Swedish, The rental one-bedroom [apartment] is yours for 300 000 [SEK]), Svenska
Dagbladet, 5 May 2013
9. Osterfield, David. "The Government, the Market and the Poor" (http://fee.org/freeman/detail/the-government-the-m
arket-and-the-poor). Retrieved 2008-01-25.

External links
An article critical of slumlords (https://web.archive.org/web/20060216055514/http://www.rhol.org/rental/slu
mlord.htm)
An essay that briefly defends slumlords (https://web.archive.org/web/20070402205120/http://www.libertyha
ven.com/theoreticalorphilosophicalissues/austrianeconomics/govmarket.shtml)

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Categories: Real estate Urban decay

This page was last edited on 21 November 2016, at 22:34.

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