/biz/ - Business & Finance

>>18108433

Not to mention the tenants pay to fix everything, and for many people a management company deals with the service orders. When it is a landlord doing it personally, they're probably a small landlord. That means they're acting as small property manager in terms of their labor, but they're making income from ownership as well as their work in this managing capacity. The management companies are actually more efficient than this arrangement, because they manage many properties for many property owners, so the people working as property managers in various capacities do it more often for more units than the small landlord. The cost of the small landlord in terms of the amount they accrue to themselves for the labor they do is theoretically reducible if they did more work in some management capacity, because they'd be more productive. This is also intuitively represented as the fact that when their labor as a property manager is brought up as justification for their ownership income from their property as an asset, your not even talking in normal terms of markets for specific kinds of labor because in that realm, a property manager has a range of salaries/wages out there on the market for a certain level of productivity that can be checked against the small landlord. If the average workers employed in some capacity as a property manager is paid $50,000, and they work on the orders of 30 units or something every week, while the small landlord also makes $50,000 from their property, but they only work on the orders of 2-4 units, then they're being paid very highly because of their ownership rather than their work.

You can improve their productivity if they were employed doing what they do for their single or handful of properties to do it for many properties like the people who are just paid a wage to do the same thing.