The “Evil Landlord” Myth: Origins and Modern Popularity
The “evil landlord” caricature — the greedy, heartless rent collector — is more historical baggage than modern truth, and it originated under systems that had nothing to do with a free market.
Origins in Feudalism and Early Urbanization
Its earliest roots lie in feudalism, a government-enforced hierarchy where kings and nobles owned the land by law, and peasants were bound to it. Rent wasn’t a voluntary exchange — it was extracted under threat, backed by the state. This was not capitalism; it was a state-controlled monopoly on land.
The Industrial Revolution gave the myth fresh fuel. Rapid urban growth, combined with heavy-handed and poorly designed housing regulations, created the conditions for notorious “slumlords” to emerge. Progressive journalists and political reformers seized on these cases to justify even more government control over housing, cementing the narrative that all property owners were inherently exploitative.
Marxism, Class Struggle, and the “Rentier” Villain
In the 19th and 20th centuries, Marxist theory supercharged the myth by labeling landlords as “rentier capitalists” — non-productive parasites who live off others’ labor. Socialist movements used this framing to rally class resentment, making “landlord” a political slur.
Pop culture Reinforcement
From Dickens’ Bleak House to Monopoly’s Rich Uncle Pennybags, the archetype of the greedy landlord became a pop culture staple. Films, TV shows, and even cartoons often feature landlords as comic villains, evicting sympathetic tenants for overdue rent or raising prices without mercy. These portrayals simplify a complex economic relationship into a good-versus-evil morality play.
The “evil landlord” myth endures because it’s emotionally satisfying, politically useful, and culturally ingrained. But its persistence owes more to historical caricature and ideological framing than to the reality of modern housing markets, where landlords provide a service that many people willingly pay for. Like most myths, it survives not because it’s universally true, but because it’s easy to tell — and easier to believe.
Are landlords Exploitative?
While there are always bad actors in every aspect of human life, the existence of landlords and rental properties, airbnbs, etc are a net benefit to society.
Let's dig in.
Critics often—knowingly or not—lean on the outdated Marxian Labor Theory of Value, which claims the economic value of a commodity is determined by the amount of socially necessary labor time required to produce it. If landlords don’t physically “work” the property daily, the thinking goes, they can’t be creating value.
Modern economics, however, rejects this simplistic view. In advanced civilizations, the Subjective Theory of Value better explains the reality of economics. The Subjective Theory of Value holds that the value of a good or service is determined entirely by individual preferences, not by the amount of labor, materials, or cost that went into producing it.
For example, a bottle of water might be worth $1 to someone in a city with clean tap water, but to a hiker lost in the desert, that same bottle could be worth much more. The difference isn’t in the labor or materials — it’s in how much each person values it in their own situation
Following the scientific principle of economics, a landlord and tenant are mutually exchanging agreed-upon value. They both get what they want. A landlord makes a profit on his investment. A tenant obtains an exclusive living shelter. A is traded for A. There is no exploitation involved.
Renters value:
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Immediate access to housing without years of saving.
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Freedom from ownership responsibilities like maintenance and taxes.
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Flexibility to move without selling property.
This convenience is the product landlords sell—and it’s worth paying for.
Landlords Take on Risks Renters Avoid
Owning property isn’t free money. Landlords assume significant financial and legal risks:
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Capital Risk: Buying property requires large investments, often financed. If the market drops, the landlord eats the loss.
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Maintenance & Repairs: Broken pipes, roof leaks, HVAC failures—landlords pay, renters don’t.
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Vacancy Risk: Empty units generate no income, but costs remain.
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Legal Compliance: Landlords must meet safety codes, zoning, and regulatory requirements.
Renters enjoy housing without these burdens—by choice.
Housing Shortages Are Caused by Regulation, Not Landlords
Another argument, typically from the left, claims that because the stock of homes is so artificially low, landlords with means can "buy up all the properties" and keep rent high, forcing an individual with a need for shelter to pay obscenely high rents rather than buy their own place.
High rents are often blamed on “greedy landlords,” but the real culprit is government interference:
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Restrictive zoning laws limit where new housing can be built.
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Lengthy permit processes slow development.
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Rent control discourages investment in rental properties.
When supply is artificially restricted, prices rise—regardless of landlord profit motives. In freer markets, competition keeps rents in check. Without NIMBY laws (that have bipartisan support), developers would be able to construct smaller, cheaper homes in highly desired areas.
A landlord can both be for buying investment property and also against NIMBY laws, so there is no inherent conflict.
Many People Prefer Renting Over Owning
Not everyone wants to own a home, and that’s not a problem—it’s a preference. Many Millennials, Gen Z, and traveling professionals choose renting for:
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Career mobility—easier relocation for new jobs.
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Lifestyle flexibility—travel, work remotely, and avoid mortgage debt.
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Urban access—living in desirable neighborhoods they couldn’t buy into.
Short-term rentals like Airbnb also give travelers authentic local experiences without ownership burdens. Landlords make this possible.
Airbnb has also been a game-changer for traveling workers, especially bands, production crews, and digital nomads, by providing affordable, flexible lodging options that traditional hotels often can’t match.
Instead of booking multiple expensive hotel rooms, groups can rent an entire house or apartment, splitting the cost and enjoying shared living spaces like kitchens, living rooms, and backyards.
This not only saves money but also creates a more comfortable, home-like environment that’s perfect for collaborating, rehearsing, or simply unwinding together after work.
For digital nomads, Airbnb offers month-to-month stays in diverse locations, enabling them to work remotely from anywhere in the world while keeping housing costs predictable and eliminating the hassle of long-term leases.
This is all made possible because of free-market innovations and individuals having an incentive to utilize their investment properties.
Landlords Are Entrepreneurs, Not Parasites
Buying and managing rental property is a form of entrepreneurship. Landlords invest capital to provide a service that’s in demand—just like any other business. Their profit is the reward for:
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Allocating resources efficiently.
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Managing property effectively.
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Serving a customer base that values flexibility.
Without landlords, housing choice would shrink, mobility would decrease, and many people would face higher upfront costs to live where they want.
What if there were no landlords?
If socialists got their way and there were no landlords — meaning no one offering property for lease — ordinary people who can’t or don’t want to buy a home would be left with few, often worse, options.
They’d have to live with family indefinitely, rely on friends’ couches, cram into overcrowded shared houses, or compete for scarce government-subsidized housing (with long waitlists and restrictive rules).
Many would be forced into risky, informal arrangements like under-the-table room rentals or squatting.
For people who move frequently for work, are saving for a down payment, or simply value flexibility, renting is what makes independent living possible without the huge upfront cost of buying a property — and without it, mobility, opportunity, and personal freedom would shrink dramatically.
Conclusion: Landlords Provide Value in a Free Market
The “landlords are parasites” claim doesn’t hold up. Under the Subjective Theory of Value, rent is a mutually beneficial exchange between consenting parties. Landlords provide immediate access, risk absorption, and lifestyle flexibility—all of which have real, market-proven value.
Housing shortages are driven by restrictive regulations, not landlord existence. In a competitive market, landlords aren’t exploiters—they’re providers of a service millions voluntarily choose.
FAQs About Landlords and the Housing Market
Q1: Are landlords the reason rent is so high?
No. The main driver of high rents is low housing supply caused by restrictive zoning laws, permit delays, and other government regulations.
Q2: Isn’t renting just “throwing money away”?
Not necessarily. Renting pays for flexibility, convenience, and location—valuable benefits for many people.
Q3: How do landlords create value?
They invest capital, maintain properties, manage risks, and provide housing options without ownership commitments.
Q4: How does the subjective theory of value apply to rent?
It explains that rent prices reflect what tenants are willing to pay for the benefits they receive, not just the cost to build the unit.
Q5: How does Airbnb benefit travelers and locals?
It allows travelers to enjoy unique stays and locals to monetize properties, increasing housing flexibility for digital nomads and vacationers.
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