I have been a landlord for about 30 years. I remember when I was around 7+ years old (1950 through the 1960’s) my father had rental property. His properties did not include appliances. It was up to the tenant to provide his/her own appliances. Providing a dishwasher, garbage disposal, microwave, ceiling fans, firealarms, etc. was unheard of. Today, tenants move in with only furniture, clothes, and television. All kitchen appliances are, in most cases, provided by the landlord. In my father’s time, taxes and insurance must have been reasonable because I never heard my father complain about paying taxes or insurance.

by Alfredo Sanchez

Ihave heard recently from several sources, that the reason rent has gotten so expensive is that Landlords have gotten greedy. I would like to shed a little light on the increase of rents. Texas property taxes have gotten very expensive especially for Landlords.

Landlords do not receive any of the tax breaks homeowners get, such as the homestead exemption even though landlords provide housing to the most vulnerable populations (low income, elderly, young families with children, people in low paying jobs etc.) Depending upon their status, homeowners can receive multiple tax break on their land while landlords do not get a single property tax break.

Landlords pay the full valueofthepropertytaxes.Seniorcitizens,no matter what their property is worth, or their net worth, get up to 5 exemptions in Denton County. Veterans, depending on their disability, can have as much as 100% of their taxes erased.Tax exemptions, considered by homeowners as a great deal, shifts a higher tax burden to landlords who themselves pass it on to tenants as higher rent.

For a rental to remain profitable a landlord’s taxes must hover at around 15% of total income from the property. This means that about 2 months of rent goes to taxes. Then there is insurance. When it comes to insurance, homeowners who bundle their insurance have their premiums reduced. Such a thing does not exist for the landlord. Insurance premiums vary substantially from company to company. A “landlord insurance policy costs about 25%more than a homeowners insurance policy for the same property. The primary reason for the difference in cost revolve around who is occupying the home”. It is not always the case, but most people take care of their own stuff much better than when stuff belongs to someone else. There are many more repairs on rental property than with owner occupied properties. These repairs include both structural and appliance repairs, (stove, refrigerator, microwave, dishwasher, central heat, and air, both inside and outside units}. Unlike when it is an owner-occupied home, renters want things fixed yesterday.

Landlords are available 24/7 to make emergency repairs. Many landlords do not own their property outright so they have monthly payments to make beyond taxes, insurance, and repairs. Many landlords are mom and pop businesses that struggle from month to month. Therefore, landlords are not greedy; they are merely responding to the outside forces on their businesses just like any other business does.