Slumlord

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A slum lord (also spelled slumlord) is a derogatory term assigned to some landlords, who maximize profit by spending little on property maintenance and conversely charging low rents to tenants, often in deteriorating neighborhoods. (As many of these neighborhoods are often populated by poor minorities, the term ghetto landlord has also been used.)

The phrase slumlord first appeared in 1953, though the term slum landlord dates to 1893. ^[1]

Normally, a landlord will properly maintain the property (which can be costly) to attract higher rents and more desirable tenants. In addition, the well-maintained property, once the landlord decides to sell, will command a higher price from buyers.

In contrast, slumlords do very little maintenance on the property (ordinarily, just enough to meet minimum local requirements for habitability), and in turn offer low rent rates to lure tenants who won't (or can't) pay high rent (and who might not pass background checks in order to live in the higher rent areas). It is not uncommon for slumlords to buy the 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. 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.

Many people have a negative opinion of slumlords, blaming them for declining property values and whole neighborhoods of shanty buildings. They claim slumlords leech away what little wealth the poor have with little regard to future generations or the local people. In effect, they work in the opposite direction of gentrification, where landlords try to make appealing improvements to property in order to attract more affluent renters.

Economist David Osterfield writes, "...the slumlord, regardless of his motives, helps the poor make the best of their bad situation."