There are many reasons why a landlord will either not get rich or get rich at a much slower pace than alternatives. Just to mention a few:
1. Buying in a bad neighborhood and things just get worse.
2. Tenant falling far behind for some reason then moving out.
3. Overpaying or over capitalizing.
4. While looking for a buyer or tenant, squatters or looters move in.
Please don't use terms like 'exploit' without specific details.
I prefer to be a tenant so that I have less worries, more freedom and more capital available for other investments.
> Buying in a bad neighborhood and things just get worse.
I can tell you've never done property management, because the most profitable areas are bad neighborhoods. In the US, section 8 housing is effectively guaranteed income, at favorable rates. The tenants don't really have much say in the conditions of the apartment, and all that's needed is to pass the housing authority inspection (which only cares about safety, not quality), so costs are generally low.
Being a slumlord is extremely profitable.
> Tenant falling far behind for some reason then moving out.
For the vast majority of the US, you can evict a person for nearly any reason with 30 days notice, and can evict someone for non-payment with 5 days notice. Holidays can extend that by a few days here and there, but for the most part, you can avoid tenants being months behind in rent, especially if the market is saturated.
Some landlords like to let their tenants fall behind because as long as the tenants eventually pay the rent, they get the late fees, which can increase their rents by 20% or so. Preying on the poor is also very profitable.
> Overpaying or over capitalizing.
You can do the same with any investment. Unlike other investments, though, you can write off most of your expenses, and you can carryover loss for essentially forever. Even bad real estate investments can be beneficial. There's a reason real estate investment is heavily favored by the rich.
Landlords aren't guaranteed to get rich, but it's extremely difficult to actually lose money as a landlord, unless you're a really shitty investor. Nearly everything you spend money on can be used for tax deductions (sometimes for years or forever after the loss), so even losses tend to be beneficial, when you're diversified properly. The law is way too favorable to property investment.
> While looking for a buyer or tenant, squatters or looters move in.
I did property management for a long time and can tell you this simply isn't a real problem. Squatters rights take a long time, and the police will forcibly remove them.
1. Buying in a bad neighborhood and things just get worse. 2. Tenant falling far behind for some reason then moving out. 3. Overpaying or over capitalizing. 4. While looking for a buyer or tenant, squatters or looters move in.
Please don't use terms like 'exploit' without specific details.
I prefer to be a tenant so that I have less worries, more freedom and more capital available for other investments.