Nothing is 'always' true but long run it would be odd to assume that municipalities can lower/raise the return on capital in the rental business by raising and lowering prop taxes, which is what we'd be assuming to say that prop taxes don't eventually flow into rents. It doesn't mean other things don't *also* affect rents.smooth_rough wrote: ↑Sat Dec 31, 2022 9:37 amNot always true. Landlord vacancy rate has more impact on rent increases than anything else.Nyc10036 wrote: ↑Sat Dec 17, 2022 3:09 pmYou may rent, but your landlord has to pay taxes.Hebell wrote: ↑Sat Dec 17, 2022 2:47 pm Property taxes don't matter to my husband and me any more, as we plan to rent. After doing the starter home, large downtown luxury home, and Florida condominium, we only want a VERY nice apartment, or independent or assisted living when the time comes. We can get by with 750 sq ft. Easily. (Caring for two failing parents with too much stuff, and all the grief that ensued, had us radically downsizing in 2015. What a having little stuff has been)
But even with wonderful lookup tables from Kiplingers and Kitces, I think this tax season I will buy several different state add-ons to TurboTax. So I can change my home address and perturb the TurboTax state returns so I can evaluate a wide variation of what-if scenarios. (And add sales tax on top of the result based on my anticipated discretionary income)
Thanks to the previous writers who pointed out all sorts of arcane state taxes that just don't show up in the magazine articles.
He has to make a profit.
If his taxes go up, your rent is following.
The base assumption is that return on capital tends to seek its own level across assets risk for risk, over time, and increased/reduced costs of business, of which prop tax to a landlord is one, tend to get passed through to consumers, the renter in this case. If a state increased its income tax to provide more support to municipalities or expand a property tax deduction/rebate, rents would fall all else equal even if overall tax take was constant. IOW in a state with very high prop taxes like NJ (though the income and sales taxes are pretty high here also) that's part of the explanation for high rents. It doesn't mean every squiggle up and down in rents is explained by a change in property tax, of course not.