Final answer:
The tenant is usually responsible for paying rent to the property owner or a designated property management firm. When price ceilings are in effect, landlords may offset lower rents by reducing maintenance and housing quality, underscoring the economic principle that everything has an opportunity cost.
Step-by-step explanation:
The person responsible for paying rent when a property is not self-managed depends on the contractual agreement between the property owner and the tenant. The tenant typically pays the rent directly to the owner or via a property management company the owner has hired to manage the property. In situations of price ceilings set by government policies, where the rent is capped at a lower rate than the market value, landlords might convert rental units into co-ops or condos or diminish the quality of housing by spending less on maintenance and essentials like heating, cooling, water, and lighting.
Everything has an opportunity cost, which is a foundational principle in economics. When renters are offered housing at a price lower than the market rate due to price ceilings, they often face a trade-off in the form of lower housing quality. This could range from slower maintenance responses to less reliable essential services within the rental property.