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One Mans Ceiling is Another Mans Floor
One Mans Ceiling is Another Mans
Floor Landlord/Manager Residency and Housing
Condition Porell, Frank W.
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One Mans Ceiling is Another Mans Floor
Agenda
Introduction
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Model Development and Specification
2
Empirical Results
3
Conclusion
4
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Introduction
Owner-occupant maintain housing better than
absentee landlord
Intuitive Reasons More disposure to correct
deficiencies, due to Awareness of
problems police-like function devote more
resources to investment actvitvity, since they
utilize lower priced personal lower priced
labor services Pride in the dwelling internalize
negative externalities comparative advantage
resident landlords hold in tenant
selection select ones with lower propensity to
impose wear and tear influence maintenance
policy
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One Mans Ceiling is Another Mans Floor
Agenda
Introduction
1
Model Development and Specification
2
Empirical Results
3
Conclusion
4
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Model Development
What has been done till that day.....
One way analysis of variance results by Sternlieb
(1966) and Sternlieb and Burchell (1973)
systematic differentials in housing condition by
rental management form do exist. Multiple
Regression by Ozanne and Struyk (1973) not
supportive once tenant and neighborhood
attributes were accounted for. Hedonic rent
analyses leaded to mixed results. Peterson (1973)
and Merril (1980) statistically significant rent
discounts to tenants in landlord-occupied
structures for St. Louis and Pittsburgh whereas
in Pheonix there was no statistically rent
discount
......apparently the empirical support for the
proposition of the superiority of landlord
residency is rather weak....
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Model Development
Landlord residents and absentee Landlords Profit
maximizing housing producers
Transformation function
S vector of building attributes H tenant
attributes N neighborhood location attributes M
form of rental management
J housing quality indicators
By weighting

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Specification of Composite Quality Indices
A two step approach....
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One Mans Ceiling is Another Mans Floor
Agenda
Abstract
1
Model Development and Specification
2
Empirical Results
3
Conclusion
4
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Empirical Results
Pooled cross section Annual Housing Survey data
from 50 SMSAs from 1975- 1977 time period
Stratified data 3 classed w.r.t. building
characteristics STYPE-1 2- 4 units, 1- 3
floors STYPE-2 gt 5 units, gt 1- 3
floors STYPE-3 gt 5 units, gt 4 floors
Units in structures of 2 4 with landlords or
managers on site exhibit higher quality housing
services than those units without landlord or
manager on- site. 45.5 reduction in
deficiencies for landlord occupied 30.4
reduction in deficiencies for manager occupied
units No significant impact of landlord or
manager residency was found for multifamily
structures of 5 or more units.
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One Mans Ceiling is Another Mans Floor
Agenda
Abstract
1
Model Development and Specification
2
Empirical Results
3
Conclusion
4
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Conclusion
Empirical support for the hypothesis of landlord
and manager residency superiority as rental
management form
units in landlord- or manager-occupied structures
of four of fewer are generally of superior
condition relative to similar units with no
resident landlord or manager Not supportive of
landlord or manager superiority for larger
multifamily buildings of five or more units.
some speculative conclusions both landlords
and manager residency effects were found to be
significant suggests that pride of
homeownership cannot account fully for the
superior dwelling condition of landlord occupied
buildings pride contributory The greater the
anonymity that large multifamily structures
provide, the less the effectiveness of an
implicit policing function Target for public
policy
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