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To: Myrddin

actually not always.

In commercial leases the property tax and renter tax is seperatly stated and chaged and if the renter defaults it is converted to rent due and owing.

In residential leases the rent and property taxes are included as seperate clauses in leases where the landlord is astute enough to put it in.

this is important as property taxes may go up and the landlord needs to pass that cost through to the renter.

It is not a question of “covering the cost in the rent” it is a question of drafting the lease to ensure the taxes are paid by the renter.


26 posted on 04/10/2008 10:06:57 AM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: longtermmemmory
as property taxes may go up and the landlord needs to pass that cost through to the renter

Depends on the individuals.

You get a renter who
(1) has a quiet lifestyle
(2) has never been late with the rent by one day
(3) takes care of the property like it was his own -
you do not necessarily want that renter to walk when you tell him you are passing through a tax increase.

I'm that kind of tenant. I have rented a home three times in my life, each time for 4+ years. I have only been hit with a rent increase once, when a new owner bought the property and decided he needed to recover his total purchase price in the next five years. I moved out in three weeks.

Last I heard he had been through four tenants in the next 30 months. Always did want to ask him how that was working out.....

35 posted on 04/10/2008 11:34:54 AM PDT by Notary Sojac
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To: longtermmemmory
My 2nd house in Pocatello is my first dabbling into property ownership as an investment vs my residence. I left the place vacant the first two years. Initially, the windows needed to be replaced for safety and efficiency. I did that the first month. The rental to the police officer was mostly a "helping a friend" situation rather than intended as a real market rate rental. Putting my son up in the house is the same situation. I really need to come up to speed on the right way to structure a rental/lease agreement before I put the house back into that market. The property has appreciated since acquisition, so I'm doing fine in that direction.
37 posted on 04/10/2008 11:51:55 AM PDT by Myrddin
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