A lessor refers to an individual or entity that owns a property and leases it to another party. The lessor retains ownership of the property, while the lessee (tenant) gains the right to use and occupy the property in exchange for regular rental payments.
The lessor is responsible for maintaining the structural integrity of the property and often has other obligations as specified in the lease agreement. These might include insurance, property taxes, or major repairs, depending on the terms of the lease.
In a real estate investment scenario, acting as a lessor can be a means of generating consistent income from a property, and the value of the property may also appreciate over time, leading to potential capital gains.