Money grubbing govts (rant) - Posted by Mark (SDCA)

Posted by Bob Smith on May 28, 2006 at 16:07:29:

>I also think that cities would like to TAX all houses if
>they could figure out a way to impute rent on an OO properties.

Don’t laugh. In Denmark, homeowners pay income tax on the imputed rent of their homes. I am sure that, among other reasons, is why home ownership is comparatively low there.

Money grubbing govts (rant) - Posted by Mark (SDCA)

Posted by Mark (SDCA) on May 27, 2006 at 17:26:59:

Is anyone else seeing that governments at ALL levels are starting to hit up small landlords for cash?

County property taxes have always been part of the equation. However, in the last few years (in Arizona), the state and cities are also getting into the money grab, even for landlords with as few as one unit. (It used to be limited to larger landlords as well.)

It has gotten to the point that I am either passing these costs along to the tenants or I am selling the property and all the governments can less (or even nothing).

This happening in any other states/cities? If not, it probably will be soon.

Cheers,

Mark

Re: Money grubbing govts (rant) - Posted by David Krulac

Posted by David Krulac on May 27, 2006 at 19:26:43:

Agreed:

  1. Taxes and insurance have increased sharply since 2001. More services cost more money and when did you ever hear of government shrinking in size?

  2. Minor utility bills like water, sewer, and trash used to be meer blips, now their costs have also sharply escalated. One town where the sewer was free now charges, another place charges $70 per month per unit just for sewer.

  3. Major utilites like electric, gas and oil are way out of site. The home heating oil prices move with the gasoline prices and everybody knows what they’re doing.

  4. Rental inspection is just beginning to raise its ugly head. There is a fee to register each of your tennats as well as a fee of $180 per hour for an engineer to inspect your units. Most are starting at inspection every 3 years, but some places are every year. One landlord that I know owned 50 units, apts, TH & SFH in one town. They passed a law requiring $200 per unit per year. You do the numbers. Besides the $$$$, figure out the costs in time of being present for 50 rental inspections every year. One town’s law says that the penalty is up to $1,000 per day fine and up to 30 days in jail. The catch is that the tenant doesn’t have to let anybody in unless they have a search warrant. Here’s a perfect opportunity for a disgrunted tenant to refuse admission to the rentla inspector and send his landlord to jail. What a country!

Re: Money grubbing govts (rant) - Posted by vk60546

Posted by vk60546 on May 28, 2006 at 08:42:35:

"Rental inspection is just beginning to raise its ugly head. There is a fee to register each of your tennats as well as a fee of $180 per hour for an engineer to inspect your units. Most are starting at inspection every 3 years, but some places are every year. One landlord that I know owned 50 units, apts, TH & SFH in one town. They passed a law requiring $200 per unit per year. You do the numbers. Besides the $$$$, figure out the costs in time of being present for 50 rental inspections every year. One town’s law says that the penalty is up to $1,000 per day fine and up to 30 days in jail. The catch is that the tenant doesn’t have to let anybody in unless they have a search warrant. Here’s a perfect opportunity for a disgrunted tenant to refuse admission to the rentla inspector and send his landlord to jail. What a country! "

BigV-

  1. that’s why it is important participate in the local elections as well as national.

  2. I can’t believe the landlord you speak about did not put up a fight. $10,000/year on ispections is a bit excessive. It’s also interesting that the city requires the same price for TH and SFH’s.

How is this city doing now? What’s going on with the rental business there?

Re: Money grubbing govts (rant) - Posted by David Krulac

Posted by David Krulac on May 28, 2006 at 13:16:25:

well the guy with 50 rental properties is/has been selling out. he refuses to do business in that town.

One mayor often rants about “out of town slumlords” apprarently in town slumlords are OK.

In one town, which has a college there have been rental inspections for a few years. It was challenged in court and according to state law rental inspections can be money makers. The fees charged have be no more than the actual costs to administer. The landlords won and the town had to refund thousand of $$$$ illegally collected.

There has been talk of lawsuits but nothing filed yet.

At one council meeting about 10 people spoke against the rental ordinance, none spoke in favor. The council politely listened then voted all in favor of rental inspection.

At another town at the town meeting the chief government official spoke and said that residents were in favor of this and would welcome inspections of ALL houses. (Not just rentals). IMHO that would never get enacted and if it did the voters would kick out the rascals.

In Pa. the legislators voted for their own pay rasie last years. Public outcry cause the raise to be repealed. Inspite of the appeal 22 senators lost their jobs including the #1 & #2 ranking senators. But don’t cry for them, the #1 guy gets a $105,000 pension.

Landlords and investment property owners are not very organized. Some landlords see nothing wrong with rental inspection and fail to realize that this is just the start. And in tight rental markets increased costs can’t be passed on to the tenants.

Personally I think rental inspections devalue the properties and make them worth less. More time and money spent on a wasted venture. In the hearing one engineering company who does rental inspections for the muncipality under contract at $180/hour said that 95% of the inspections showed no violations. If thats the case then the 95% are being punished, in my mind.

Re: Money grubbing govts (rant) - Posted by Mark (SDCA)

Posted by Mark (SDCA) on May 28, 2006 at 15:57:58:

inspections of ALL houses. (Not just rentals). IMHO that would never get enacted and if it did the voters would kick out the rascals.

Could not agree more. I also think that cities would like to TAX all houses if they could figure out a way to impute rent on an OO properties.