You would think that you could arbitrage this problem away by increasing the landlord size (and proportionally undercutting rents). I.e. if 10% of renters will

You would think that you could arbitrage this problem away by increasing the landlord size (and proportionally undercutting rents). I.e. if 10% of renters will wreck their house but rents are higher by 30% on the whole, then a large landlord should be able to shrink that gap (i.e. principle of insurance - they can eat the loss) - versus a small landlord who would want extra padding to account for the risk.