«In which case the person who owns the land is providing the utility of selecting/screening the most effective managerial service.»
Of course, but that work could be provided by anyone. The tenant. The government. A tenants' union. It takes no special skill and neither does it require ownership of the building.
The only reason it's the owner who gets to do that job is that they're legally entitled to. And somehow that entitles them to rent.