Landlords Say Higher Property Taxes Could Mean Higher Rent

by Leanne Tokars (ltokars@wsbt.com)

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Landlords Say Higher Property Taxes Could Mean Higher Rent

(WSBT photo)

By WSBT News1

(WSBT) Some landlords are seeing sky-rocketing property taxes, and it's the renters who could have to pay.

Several landlords say they have no choice but to increase what they charge for rent to make up for their bigger than expected property tax bills. It turns out, that may lead to more vacant houses.

Landlord Gary Peterson says he’s not sure what he’ll do now that his property taxes doubled on some of the houses he rents out.

“They just came in my pocket and took and extra $15,000 to $20,000 out of my pocket more than they did last year,” exclaimed Peterson.

He’s not alone. Landlords are not eligible for the Homestead Tax Credit. For many landlords, that leaves only one option – the rent they charge.

"In order to keep me going in — if I have to raise it, I have to raise it,” said Mishawaka landlord Ryan Dustin.

But renter Laura Cummins who’s a single mother of three, full time worker, and full time student, is worried.

“It's a concern for me, because I'm barely able to make rent as it is, and I want to raise my kids in a decent neighborhood,” explained Cummins.

Raising her rent would make higher property taxes as much of a burden on her, as it is to those who have to pay them.

“I'd pretty much be out of options, I mean I don't know what I would do,” commented Cummins.

“We are renting to the average person. We're not renting to a business; we're not renting to people with an endless pocket. They only have so much money to live on," Peterson added. "So let's make it where we can still have affordable housing and South Bend doesn't end up with more vacant houses or North Liberty or Mishawaka."

This is deja vu for a lot of landlords.

When the property taxes went up last time, Peterson says he ended up having to sell about 10 houses in South Bend.

He says many of those houses are no longer even on the tax roll. Since he sold them, they've either been repossessed or left vacant.

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