[fjk]

"If the asset depreciates I can't imagine being a landlord is a very lucrative proposition"

That's not necessarily the case. Traditionally, landlords make money on 1) cash flow from tenant rents and 2) appreciation of the property at the eventual exit. In Japan, it seems like 2) is out of the equation, but if 1) is high enough, owning rental properties could be very lucrative for landlords, especially if there's high demand for rental properties. Detroit is a market that's experiencing an increase in rental properties even though appreciation is practically nothing in most areas.