Jacksonville Jaguars Fan Forums

(03-09-2024, 09:41 AM)StroudCrowd1 Wrote: [ -> ]Just catching up on this one. Mike clearly has never owned rental property, nor has he ever been a landlord. Then again, why would someone making 500k a year need to own rental properties?

You can't just charge what you want. The market drives rent prices, not a landlord. Being a landlord is hard.

Property taxes
Insurance
Mortgage
VACANCY
Property management (6-10%)
Routine maintenance
Capital expenditures (roof, plumbing, appliances, siding, painting)

Cash flow margins are slim, especially with interest rates Mike and the surburban women's presidents policies caused.

Of course you can't charge what you want.
Of course the market sets rental price.
If the tenant is paying enough to cover your costs, including property tax, you continue the investment.  If the tenant is not paying enough, you seek another tenant who will or sell the property.  The new owner presumably will structure their investment to be able to accept less rent than you were able to.  But this is a rare scenario.  Rent generally goes up, not down, as you know.

And you're correct that I've never been a landlord but I do know a few.  Property taxes are real, but the thing that's really screwing them are maintenance cost increases and insurance cost increases (which are both tied to raw materials and labor ultimately)

Again the point is not "landlords are bad" or "being a landlord is easy".  Not at all.  The point is "the tenant pays the property tax." And they do.

(03-09-2024, 09:44 AM)Jaguarmeister Wrote: [ -> ]

(03-06-2024, 01:22 PM)mikesez Wrote: [ -> ]Right, and the property owner passes it on to the tenant.

As all property owners are burdened by property tax, there is no possibility that owners will compete on this basis, and the price paid by all renters simply goes up.

In effect the renters pay the property tax.

If it were not so, if for some reason the landlord couldn't fund the property tax using money from the tenant, the landlord would walk away from the property and let the tax assessor have it.

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I don’t have a problem with your logic on who is actually paying the property tax as long as you also extend that logic to corporate taxes, which are passed on the the end consumer via price increases resulting in the consumer, not the corporation, paying the tax.  You should be a strong advocate for zero corporate level taxes.

Of course the consumer pays corporate tax.  
All taxes get passed down to the last guy on the ladder.  You can take the same argument to say that any tax should be zero, not just corporate tax.
Taxes should be as low as possible.  Some can be eliminated, sure, but there have to be some taxes.