Your logic is sound, but my observation in reality does not match.
There are slumlords - but that's usually caused by a compression in supply (e.g., when I was in college, any place near school had notorious landlords). When supply is open though, everything works out.
You have your uber-cheap rentals where nothing will ever get fixed, and then you have your more premium rentals where they'll turnaround a stove in 24 hours or less. Like all markets, a low-end and high-end are established and work just peachy.
Of course, this is not geographically true everywhere - especially when you introduce artificial supply and demand factors (rent control, anyone?).
There are slumlords - but that's usually caused by a compression in supply (e.g., when I was in college, any place near school had notorious landlords). When supply is open though, everything works out.
You have your uber-cheap rentals where nothing will ever get fixed, and then you have your more premium rentals where they'll turnaround a stove in 24 hours or less. Like all markets, a low-end and high-end are established and work just peachy.
Of course, this is not geographically true everywhere - especially when you introduce artificial supply and demand factors (rent control, anyone?).