A lessor is the party who owns a property, or has the right to lease it, and grants a tenant the right to use it under a lease. In everyday language, the lessor is the landlord. The tenant on the other side is the lessee.
A lessor can be an individual, a partnership, an LLC or a large real estate company. In a ground lease, the lessor is the landowner who leases out the land.
Typical rights of a lessor
- Collecting rent and other charges allowed by the lease and the law
- Setting reasonable rules for the property, within legal limits
- Entering the property with proper notice for repairs, inspections or showings
- Keeping lawful deductions from the security deposit
- Ending the tenancy through proper notice and, if needed, the court eviction process
Typical duties of a lessor
- Keeping residential property habitable and making required repairs
- Following fair housing laws in advertising, screening and leasing
- Respecting the tenant’s quiet enjoyment of the property
- Handling security deposits according to state rules
- Giving required disclosures, such as lead-based paint for most homes built before 1978
- Following proper procedures before ending a tenancy
Lessor vs property manager
A property manager often acts on the lessor’s behalf, signing leases, collecting rent and handling repairs. The manager is an agent, not the lessor, and works under a management agreement. In many states, including California, managing property for others for compensation generally requires a real estate license.
Example
A hypothetical investor owns a 6-unit building through an LLC. The LLC is the lessor on each lease, even though a property management company signs the leases and handles day-to-day operations.
Why it matters for landlords
Knowing your obligations as a lessor helps you stay compliant and keep good tenants longer. TenantLoop brings leasing, rent collection, maintenance and owner reporting together, whether you manage your own units or work with a manager. If you hire a manager, our property management agreement page explains what that contract should cover.
Related terms
In practice. How the term shows up day to day.
Is my property manager the lessor?
No. The owner, or the company that holds the right to lease the property, is the lessor. A manager acts as the owner's agent under a management agreement.
What disclosures does a lessor have to give?
It depends on the state and the property, but one federal example is the lead-based paint disclosure for most homes built before 1978. Check your state's rules too.
Can a lessor enter the rental at any time?
No. Outside emergencies, the lessor generally has to give proper notice before entering for repairs, inspections or showings.