As a Realtor and a landlord, I get this question a lot. The answer is simple. It costs the landlord a lot more than if he/she lived there themselves, and here are the reasons why:

1. Taxs are higher. No homestead exemption can be filed on a property that a landlord owns and does not occupy.

2. Insurance is a lot higher.** Insurance companies insist that renter occupied properties are at a much greater risk for expensive claims due to problems left unreported until they are already serious issues. Be sure to have contents insurance as a renter. It is inexpensive and can save you a lot of heartache if something happens to the property. Your landlord likely only has dwelling coverage. They do not insure your personal property.

3. Somebody has to pay for those repairs. Landlords have to prorate break downs of major appliances, heat/air, roofs, foundations, windows, flooring, interior/exterior paint, fixtures, plumbing, wiring, etc.

4. Expected maintenance including pest control (termite and all other insect), yard mowing and landscaping, gutters, pressure washing, air filters, lock changes, etc.

5. The unexpected surprises...like finding hidden pets or that tenants have been smoking when their leases strictly prohibit it. The clean up can be costly, and because so many tenants try to get away with it, it is a factor.

6. And lastly, the profit! A landlord HOPES to make a minimal profit off of a rental for all of the work and financial investment put into the property. If this weren't the case, there would be no landlords.