I'm sure that some landlords do that because, well, some landlords will do anything that's the least effort to do, no matter what. There's nothing cheaper than 4x4 or 3x6 ceramic tile and it will look 1000% better than vinyl on a tub wall. It's fairly easy to DIY as well, and this forum can walk you through that.

I used Vinyl for the bathroom was in two bathroom applications. Which you can review pictures. When we purchased the "Thunderbird", it
only had one "head" (bathroom) and it was pretty rough. It was roomy
and conveniently located and had a really nice vanity & mirror.
But, beyond that, the toilet was very old and didn't work well. It had
no holding tanks and the whole interior ( walls and floor) were just
plain plywood. Early on, Dan addressed the toilet and tank issues, then
I started to think about what to do with the finishes .

Over the years, Dan and I have done
many, many home renovations and in one of them we had used vinyl
flooring as a tub surround. It worked perfectly. It was waterproof,
flexible to work with, and hid all the rough spots on the old walls and
it lasted beautifully. With this experience in mind I decided to cover the walls of the head with vinyl flooring.

Although it would have been the first
choice, as it was in the tub surround, I could not use anything that
looked like tiles. There are always curves in boat walls, so I knew
that a tile pattern would emphasize those curves and make it look like
the tiles were installed crooked.

I was able to find a good flooring with a
random stone pattern in brown tones and a nice matte finish that looked
like real stone.

Finding the right material was only half
the battle, now I wanted it installed with as few seams as possible.
No easy task, but we got it done. That flooring in the main head,
starts at the ceiling goes down the starboard wall and across the floor
and up the other side with no seam at all. The only seams are in the
two upright corners. By making templates and pre-fitting, I got it
installed in one large piece.

At
times it looked like a crazy " I Love Lucy" skit as I wrestled with
that glue covered flooring in that little bathroom. I ended up covered
with glue, I even had it in my hair. But, with Dan's help, I got the
job done. I was quite pleased with the results.

So, when we created the second head in
the Captain's quarters I did not hesitate to use vinyl flooring on the
walls again. The Captain's quarters are in Navy, Grey, Blue, Beige and
White, so I had to find a grey or ,beige tone with another random stone
pattern.

This
one has smaller stones in the pattern and is a little on the shiny side
but it matches the small head very well. The pieces not being so
large, and the head not being so closed in, it was a lot easier to
install. So I am very please with the results in this head as well.

VINYL FLOORING IS GREAT FOR BATHROOM WALLS.

pictures anyone??

Resurrection time..

There's absolutely no reason vinyl sheet cant be considered a water proof "solid surface". I'd guess even some linoleum's would withstand considering water wouldn't be standing on it.. And a quick wipe down would insure that.

I wish I could find vinyl sheet or linoleum with subway tile pattern, and edge it with this stainless edging..

https://waterloopaneling.com/stainless-steel-cap-strip-j-mould-8/