this post was submitted on 23 Apr 2024
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Double property taxes on owners, but give back a property tax credit on owner-occupants, so that the effective tax rate on owner occupants falls, and the only people paying the doubled tax rate are investors.
Statutorily increase the tax rate and credit when owner occupancy is below 80%, and reduce the tax rate and credit when owner occupancy rises above 90%.
nah, just exterminate landlords. more efficient, more ethical
Based take. You kill parasites (ticks leeches lice) not try to manage them or give them rules that they wont follow anyway. I got downvoted in a different community with the same post by a bunch of landlord bootlickers by describing what a fuckin drain landlords are on society
Wouldn't landlords simply pass those costs onto their renters?
Introduce rent control
Yes, and no. They are more likely to switch to a different strategy, such as a private mortgage or land contract. Large apartment complexes will likely convert to condominiums or co-ops.
Basically, if we raise the rate and credit high enough, the landlord will be able to get a better return with one of these other options than they could get from renting.
All of these other options are permanent agreements, with terms established from the start. The landlord can't arbitrarily raise rent every year. The tenant gains equity from day one.
Basically, I'm killing the concept of renting. It needs to die in a goddamn fire.
When my city raised property taxes, rents went up across the board.
A big reason this happens is because...they can do it.
Increase overall housing supply enormously through better zoning laws, and increase affordable housing supply by having ~30% of housing be government-owned at a reasonable cost, and it becomes much less viable to raise rent a bunch.
Yeah, you're not going to tax parasites off the host. We need regulations limiting corporate ownership of residential property.
So long as the property is desirable to corporate owners, they will be fighting to get around those regulations.
By increasing the tax rate substantially on non-occupant owners, we make residential property far less lucrative for corporate owners.
When they can make more money selling and lending on the property than they can make renting it, mission accomplished.
So long as you have blood, ticks will try to bite you. Increasing the taxes would be a good way to increase tax revenue, and we should do it, and corporate real estate investors will fight it like hell, but there isn't any reason to think it will discourage predatory behaviors.
If they can make more money selling and lending on the property, you get the 2008 bubble all over again.
Capitalists are going to capitalize. Regulation is the only weapon against abuse. Taxes are a good start, but it won't be enough.
Defense in depth. One's a more difficult target and it'd be foolish to abandon a near term improvement because we want a better option 10 years down the road. Do both.
No because not all landlords are capitalized equally. A new investor with a huge mortgage would. An old landlord with paid off property wouldn't. Unless they collude.
I think it should be a sliding scale.
Standard property tax on owner occupied home.
Landlord tax on additional home/unit. (Like vacation home).
Additional fee for vacant home/unit. Serious one like 20-50% market rate of unit per month vacant. This helps with company owned units and foreign bodies buying up real estate and hoarding it.
Additional fee/tax per extra unit owned. DISMANTLE REAL ESTATE INVESTMENT FIRMS. This would cause them to sell off homes.
Use proceeds of these taxes and fees explicitly for rental assistance/home buying programs.
Won’t landlords simply pass through this increased cost to tenants?
Yes, offsite landlords with traditional rental agreements will charge their tenants more. However, there are at least three options that are better for tenants and landlords alike.
Land Contract. A rent-to-own agreement, recorded with the county, much like a deed.
Private mortgage. Available only to individual landlords, not institutional investors.
Condominium. Deeded property on the inside, rental on the outside.
In all three, the tenant gains equity in the property over time. In all three, the terms are established at the time of the agreement, and the agreement is "permanent" in that it can only be canceled by the "tenant". The "landlord" can't arbitrarily increase the price year after year. All three offer considerably better return for the landlord after the property tax increase. The landlord and tenant convert their rental agreement to one of these options, and there is much rejoicing.
The only traditional rental arrangement that is likely to remain widespread is where the landlord occupies one unit in a duplex, triplex, or quadplex structure. That landlord can claim the owner occupant credit for the whole property while renting out the additional units.
Fewer people would be able to afford rent. Either the landlords would have to eat the cost, or sell.
For starters, massively increase taxation on every property over PPR, and ban corporate ownership of standalone housing.
Brilliant, love it. Anything to discourage housing hoarders will be a benefit to society.
Also fix rent rates and divorce them from speculative housing prices.