What value do you provide then?
If you can outsource all of the effort to other businesses, but you still make a profit, then you're essentially just a tax on top of the service.
If you can outsource all of the effort to other businesses, but you still make a profit, then you're essentially just a tax on top of the service.
The main value add was capital to build the dwellings in the first place. If that capital didn’t exist, then the dwellings wouldn’t exist either.
The fact that the ROI of that capital is extending to multiple generations may be unpalatable, but it may not be unreasonable (lots of variables).
A secondary value in this case would be hiring a good property management company. Some of those companies really suck, and some are really good. As a tenant, you want one of the good ones. A silent owner who is willing to give a healthy rev-share to the management company is the type of owner you want.
In this hypothetical scenario, what I'm providing is the actual physical place that's being rented out, having put up the money for a down payment and the monthly mortgage payments, taxes, etc.
If this “somebody else” has the capital, then they should build or buy.
Obviously there is an issue of lack of purchasable land/units in certain desirable areas, but that’s a zoning issue. That’s not the problem and shouldn’t be the problem of someone who had the foresight to invest their capital many years/decades prior.