Part of the payment is for services, but it doesn’t make sense overall to call it a service because the cost is only in small part determined by the value of upkeep etc. being handled, there is no option to do this yourself instead and not pay. The main thing driving the cost of housing is the supply of housing, the desirability of the location, and who owns it all.
Think about mobile homes; how well built a mobile home is, or how well it is maintained, ultimately doesn’t matter that much and it will still depreciate if it is located on rented land, because the real driver of housing value is the value of the legal right to live in that particular location, and that right is ultimately controlled by the owner of the lot. Same goes for any housing; what matters most is the land, being able to safely and legally sleep there, and the ability of the property owner to control who can do that.
The costs of the services aren’t the only thing a landlord provides. They also get to deal with the contractors to do work and repairs, and they carry a large amount of financial risk. Not to mention that tenants are typically way more protected than landlords, legally.
You also get the benefit of being able to leave basically whenever you want. With a home you’re stuck with it until it sells.
Like I said, that situation doesn’t work for everyone, but the truth is that literally any service is going to be more expensive than doing it yourself.
I absolutely know people who sold their homes and rented because paying extra was worth more to them than the hassle of owning.
Also, I did have landlords who would subtract from my rent the cost of hiring a repairman if I did the work myself. It was worth it to them to not hassle with flakey contractors.
Part of the payment is for services, but it doesn’t make sense overall to call it a service because the cost is only in small part determined by the value of upkeep etc. being handled, there is no option to do this yourself instead and not pay. The main thing driving the cost of housing is the supply of housing, the desirability of the location, and who owns it all.
Think about mobile homes; how well built a mobile home is, or how well it is maintained, ultimately doesn’t matter that much and it will still depreciate if it is located on rented land, because the real driver of housing value is the value of the legal right to live in that particular location, and that right is ultimately controlled by the owner of the lot. Same goes for any housing; what matters most is the land, being able to safely and legally sleep there, and the ability of the property owner to control who can do that.
The costs of the services aren’t the only thing a landlord provides. They also get to deal with the contractors to do work and repairs, and they carry a large amount of financial risk. Not to mention that tenants are typically way more protected than landlords, legally.
You also get the benefit of being able to leave basically whenever you want. With a home you’re stuck with it until it sells.
Like I said, that situation doesn’t work for everyone, but the truth is that literally any service is going to be more expensive than doing it yourself.
I absolutely know people who sold their homes and rented because paying extra was worth more to them than the hassle of owning.
Also, I did have landlords who would subtract from my rent the cost of hiring a repairman if I did the work myself. It was worth it to them to not hassle with flakey contractors.