On Monday, March 30, 2015 at 7:34:34 PM UTC-4, Stephen Sprunk wrote:   
      
      
   > If property taxes go up, the rent has to go up too because the landlord   
   > obviously isn't going to _lose_ money renting out the property; if so,   
   > he wouldn't have bought it in the first place.   
      
   But property taxes can, and do, go up faster than rents, and the landlords do   
   end up losing money.  In the short term, they still have a mortgage to pay, so   
   they'll have to eat the loss in the hope rents will eventually catch up.  In   
   the long term, the    
   property will be abandoned if rents don't catch up.  (Other urban conditions   
   play a part, too).   
      
      
   > (The property's value may go up over time and his mortgage payment   
   > shouldn't, but his taxes and maintenance costs will go up to match,   
   > leaving him with no real profits until the mortgage is paid off.)   
      
   It's quite variable.  In the grand scheme of things it averages out as you   
   describe, but on an individual basis it's very variable.   
      
   Sometimes a neighborhood becomes very desirable and rent goes up far faster   
   than taxes and costs and the landlord makes out very well.  Other times the   
   reverse happens.     
      
   In addition, some smart landlords manage to get low cost financing which keeps   
   their costs down.  Others know how to keep maint costs low, perhaps by doing   
   the work themselves.  Then, of course, there are foolish landlords who pay way   
   too much to    
   maintain their properties.     
      
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