Landlords Handle Property Taxes

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Posted: 11:06 PM Oct 6, 2007
Last Updated: 11:51 PM Oct 6, 2007
Reporter: Stephanie Stang
Email Address: stephanie.stang@wndu.com

16 comments

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If you are anxious about your property tax bills imagine having to paying multiple ones.

It is a hot topic on the minds of many landlords meeting at this weekend's Real Estate Investors Association of North Central Indiana.

Some say property owners say their taxes have almost doubled this year compared to last.

As a result landlords say they will either have to get out of the business or pass the extra costs on to their tenants.

“Those that can pay our bills since we are law abiding citizens will pay our bills but that means we won't be able to stay in business because it doesn't make sense any longer.. simply doesn't make sense,” says landlord Edi Mathis.

Property tax bills were sent out this week in St. Joseph County.

Payments are due by November 13th.

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Comments are posted from viewers like you and do not always reflect the views of this station.

Posted by: Greg Location: south bend on Oct 8, 2007 at 04:25 PM
If the market is tanking in several area in South Bend, then the assessed values must come down as a result of all the foreclosures and vacant homes that also play into values. However, the assessors office doesn't take foreclosures into account, or estates. Who made up this rule? And why do we have to appeal this process, when their computers are already tracking this. Maybe we won't know, and just follow their lead. Let's just quit the bull, and go straight to an increase in sales tax, and we'll eliminate several wasted government jobs in this appeal process. Also, everyone will be treated the same now. If you want it bad enough and have extra funds, you'll buy it. The best of all is that for once, we'll start collecting $1,000's of dollars in taxes that so many aren't paying currently. Can you imagine the revenue lost on all the illegal immigrants. The sales tax fixes this; and with all the illegals here, it might not change our current tax rate. Trying to be fair for all.

Posted by: S Location: GOSHEN on Oct 8, 2007 at 03:45 PM
you wasnt complaining when you was making big money. i like it when things start to slow down and you folks always want to blame it on someone else. yea taxes are too high, they been too high for 50 yrs. it is what it is, deal with it and make it work.

Posted by: Randy Location: South Bend on Oct 8, 2007 at 02:28 PM
I'm reading all of the info in relation to taxes on rentals. The only ones winning as I see from an investment side, are student housing properties. I should've invested more around Notre Dame like a few others. But I made a mistake and bought in the inner city of South Bend, and parts of Mishawaka about 10-15 years ago. Thank you, Carlton Sheets. I owned more than 30 at one time, and I saw what the government was doing a while back on the taxes, and I could see the writing on the wall. If you do the math and calculate your mortgage payment, taxes, and insurance, then anyone with any common sense would see this is a big problem. I honestly feel, that this is only the beginning, mark my word: it's going to get worse! Most landlords like me are going to bail on these properties. Our government isn't fooling me, they don't care, either we pay the property tax, or the lender will during foreclosures. (No difference to them) Who's going to buy all of the vacant homes, who???

Posted by: David Location: South Bend on Oct 8, 2007 at 12:22 PM
What is the agenda in Indiana. The lease of the Toll Road and now extreme property tax increase. What is the long term plan. Closed business, Home forclosure. If you don't lose your home from mortgage now you can lose your your home from property taxs. How many home failures before there is a change. At a time when income is lowered, homes are not selling, and business closing. Let's make a change. There must be a better solution. I heard of a possible income tax increase and eliminating property tax. Great idea. Let the home owner keep his or her home. Don't sell the citizens down the drain. A card board sign on the road side. Homeless need your help. That is not the answer.

Posted by: Barb Location: South Bend on Oct 8, 2007 at 11:12 AM
I would love to be able to get $700/month per unit. We have 19 and let me tell you...we haven't made a profit in years since they keep increasing the values. We are not slumlords and actually put money into our properties...but with this increase (nearly triple what we paid last year) of over $20,000 there would never be a profit! And you can't pass it on to the tenants - you are lucky if they pay their rent on time as it is let alone try to raise it! It is time for a change with this ridiculous system of the government spending too much and then asking for more! We all have to live on a budget, why can't they? If it continues, there will be more vacant properties causing more problems. Hopefully a new mayor will take a new perspective on the whole demise of South Bend!! Please vote for Manigualt!

Posted by: Opportunity for Ed Location: South Bend on Oct 8, 2007 at 10:40 AM
Ed, you are right, owning rental property is the easiest and quickest way to make a fortune. Landlords are just rolling in it. A matter of fact I would like give you the opportunity hit the big time, I will sell you my rentals to help jump start you on the road of real estate glory. Please let me know if you are interested.

Posted by: D Location: SB on Oct 8, 2007 at 04:07 AM
My family used to own nearly 30 rentals and after the tax increases we sold nearly all of them off ... more often than not at a loss. Our next door neighbor owned over 50 and had to let them all foreclose because he couldn't afford the tax bill. I've heard and read many many similar stories as well. The taxes are rediculous! If you dont agree with that then you must rent in a prime market or have never rented at all!

Posted by: Tony Location: south Bend on Oct 7, 2007 at 09:19 PM
I pay almost 1700.00 a year for a 965 sqare foot 2 bdrm 1 bath on the west side. The house has been on the market for a year and we can not give it away. It is time for a change. Ed and Tom should try and investing into South Bend and see what kind of income they can produce. At least I know what my losses are on a vacant house versus trying to rent it out and produce income from renters that CAN NOT EVEN QUALIFY FOR A SUB PRIME MORTGAGE OR FOR RESIDENCE IN AN APARTMENT COMPLEX. It is time for a change. The tax system is creating additional slum lords & driving people away from trying to turn property into quality residental homes. I know this for a fact!

Posted by: Swiggy Location: Elkhart on Oct 7, 2007 at 08:52 PM
Because of the tight rental market in Goshen, Ed is NOT off the mark. Units Do run $125 and up per week. Many do not provide utilities. Too many do not even pass the local codes for rental housing. I recall a couple months ago that one landlord in South Bend complained that his tax bill was rated on one of his units being valued at $35,000. He paid less than $10000 for the unit. Well, if it's only a $10000 unit, then maybe he should sell it for the $10000. Will he. No. If he's a good landlord, he's actually put improvements into the house to bring it up to the value of a $35000 home. That's the price, or more, that he would sell it for. Perhaps this is a manner to get rid of slum lords in Indiana. Beleive me, there are plenty of substandard homes in the area.

Posted by: Al Location: Mishawaka on Oct 7, 2007 at 03:05 PM
46% of houses in Mishawaka are rentals.

Posted by: Matt Location: Mishawaka on Oct 7, 2007 at 02:41 PM
Ed thanks for your input and sharing with us all your blunt ignorance… Even if this landlord is getting the referenced “magic” $700.00 a month, you failed to consider a mortgage payment…

Posted by: Anonymous on Oct 7, 2007 at 02:10 PM
Ed, come rent my house, its $550 for a 3 bedroom, garage, washer/dryer and security system. That's all the market would bear. My taxes for this house I paid $50,000....$2300, my payment is $312, my taxes are almost $200 and my insurance is $35/ month....DO THE MATH! I am a waterheater away from forecloser!

Posted by: TOM Location: ELKHART on Oct 7, 2007 at 01:23 PM
ED SOUNDS LIKE HE NEEDS A NEW ACCOUNTANT. I OWN A BUSINESS AND GUESS WHAT WE HAVE TO PAY PROPERTY TAXES. JUST CAUSE THEY HAVE RAISE DOESNT MEAN IAM GOING OUT OF BUSINESS. ITS CALLED PREPARATION AND PLANNING ED. TRY IT SOMETIME. STOP CRYING THE BLUES AND THINK POSITIVE.

Posted by: Reader on Oct 7, 2007 at 11:30 AM
Ed needs to pull his head out of you know where. There our no houses converted into four units each renting in that range.

Posted by: Ed Location: Goshen on Oct 7, 2007 at 08:53 AM
Gee I feel so sorry for the landlords. Many have old converted houses that now have 4 or more apartments. At $700 a month each (which I hear is cheap) times 4 that is $33,600 for the year; and their crying about spending $5,000 to $6,000 in taxes. You do the math about what is left. Yes I realize there is up keep but most of them obviously don't spend much on that. They also deduct it from their income taxes which helps make up some of it. I think it is time for them to pay their fair share (since they never really have) and quite whining about it.