If you were being generous you could argue that landlords lose another 10% of the rent to repairs.
That still leaves a big fat 80% slice of the rents coming in which is free money.
EDIT: Don't forget about property taxes! Those eat up a pretty big chunk of the rent too. They're usually a couple hundred a month. Let's be nice and call that 10% although it's generally much larger.
Landlords are doubly parasites.
That sounds utterly contradictory.
Landlords provide a service by maintaining and managing properties. They assume most of the risks including damage to the property due to fire and natural disasters. They provide a means for people with little to no credit to afford a roof over their head when they can't get a loan. You are not just paying to live somewhere when you pay rent. You are paying for all of these services and more. If landlords were purely parasites they wouldn't be able to make any money. People would just go around them. Just because you don't like the need for the service they provide doesn't mean they don't provide a service.
We already established that property management companies do this for 10% of the rent.
>They assume most of the risks including damage to the property due to fire and natural disasters.
Should I charitably assume that you've just never heard of insurance?
>They provide a means for people with little to no credit
That 80% of the rent which goes into their pockets after management, insurance and repairs are taken care of is pure, unadulterated parasitism.
Just as payday loans are parasitism.
They both effect net transfers of wealth that, similar to a payday loan. Capitalism grants an entitlement to those with more money to receive an income only because they have more money.
>You are paying for all of these services and more
You are often paying and not even getting these services. Many landlords end up not fixing stuff that breaks.
>If landlords were purely parasites they wouldn't be able to make any money. People would just go around them.
Not possible while they own deeds to the land. Ownership of the land is the part that lets them be parasites.
>Just because you don't like the need for the service they provide doesn't mean they don't provide a service.
Owning land is what gives them the ability to provide a service and charge 5x what it is worth.
If land ownership were illegal and it were simply rented from the government at the exact prevailing unimproved rental value then landlords would become more like an average shop owner rather than massive leeches on productive members of society.
Closer to 30% and that doesn't include maintenance costs and insurance which are _VERY_ significant.
>Should I charitably assume that you've just never heard of insurance?
I've been charitable by not bringing it up. It costs ~40-50% of your gross income from a rental property where I'm from.
>That 80% of the rent which goes into their pockets after...
Point me to where I can make that kind of money and I'll quit my job today. I'm sure I would have absolutely NO trouble at all getting a loan if I was pretty much guaranteed an 80% profit.
>Many landlords end up not fixing stuff that breaks.
If it's in the lease that they will (It's in mine.) Then sue them. If not, fix it or move. I've yet to see a lease that didn't include timely repairs.
>If land ownership were illegal and it were simply rented from the government...
It pretty much is. What do you think property taxes are? When you pay for land you're just providing an incentive for another party to cut their lease short.
>Not possible while they own deeds to the land. Ownership of the land is the part that lets them be parasites.
Land is cheap in a lot of places. Sometimes much cheaper than renting. The barrier to buying land varies, but sometimes renting is a better option.
How dare they!
Get real.
That profit is parasitically extracted. No 'work' was done to actually get it - it's merely the privilege that having money gives you.
Some landlords do do the work themselves, which simply means that not all of the income derived from their properties is parasitically extracted - only ~80%.
Probably not. You'll barely break even. It's not as lucrative as you think it is.