Here is a comparison of two similar apartments in a Brisbane inner suburb, in the same complex, with each apartment being side by side. These are good apartments, two bedrooms, two bathrooms, each 119 sqm total size, in a complex with a pool and gym. Both were sold for similar prices.
Apartment A - owner occupant
Price - $465,000 plus stamp duty $7,500 approx.
Repairs and improvements before moving in - approx $8,000
Loan repayment - $2,500 a month
Rates - $107 a month
Water - $98 a month
Body Corp - $375 a month
Insurance - $20 a month
Total - $3,100 a month
Apartment B - rental
Price -$450,000 plus stamp duty $14,100 approx.
Rent per month - $2,210 per month
Thus, the renter is $890 a month or $10,680 a year better off, and had no capital outlays, and does not have to pay for repairs and improvements (usually another $100 a month on average). The renter can easily move to another location if work needs to take the renter there.
Another way to look at this is that the weekly rent should be $715 a week to cover all costs that are included in the rent. But the rent is only $510 a week. The landlord is subsiding the tenant to the tune of $200 a week.