As a potential landlord who is doing this very thing right now, it isn't really "throwing money away", because of asset appreciation. If you get stuck with a bad tenant it's way more hassle than if you had just let it sit and AirBnB'd it every once in a while. Especially for properties where the rent is less than the appreciation per month.
How do you feel about the ethical aspect? Now the home is not useful, except as an investment to you, but if you sold it there’s lots of ways you could make money instead (and in ways that provide value to others!). And the place would be someone’s home. Seems weird to let it be stay empty like that.
I had hoped to not wade too deep into this discussion for privacy reasons, but essentially I have quasi-rented it to someone close to me who I trust, and isn't in need of the place. They cover the utilities they use, and I don't charge them rent. Still, you have a valid point. I honestly don't like the AirBnBification of neighborhoods across the world. But, the time commitment I need right now to get licensure and then to interview rental candidates/hire a management just isn't worth the time commitment. Besides that, I like the optionality of visiting the city, and I did live in the house last year ( saved a ton on rent by buying in another state and working remotely there for my employer in California during the pandemic ). Hope that adds some clarity. I'm not part of the global elite!
You may not be part of the global super elite billionaires, but you certainly sound like a member of the global elite.
You are neglecting opportunity costs: if you could earn double (appreciation + rent) instead of just appreciation, you're leaving money on the table.
But also avoiding a very real possibility of significant costs (property destruction, litigation to remove bad tenants, etc.)
Think about this: land value appreciation is so crazy that you can not charge rent and still make enough money that a property has a good return on investment.
That extra money comes with additional risks, which the parent has judged to be not worth it.