Landlord

A landlord is the owner who rents property to a tenant in exchange for rent. Gross rent multiplier is a landlord's tool. It compares properties by the rent they can collect, and it is most useful to small landlords sorting listings before they commit time to a full analysis.

The rent in a GRM depends partly on the landlord. Owners who manage well and keep units in good repair tend to hold rents near market and turnover low. Owners who defer maintenance often end up with rents below market and long vacancies, which is where a buyer sometimes finds a high in-place GRM with room to fall.

Landlords also carry legal obligations that cost money and never appear in GRM: habitability standards, notice rules, deposit handling and local registration or inspection fees. Where those rules are strict, market GRMs usually reflect them, which is one reason multiples differ between cities with similar rents.

Further reading: Landlord on Wikipedia.