I just finished writing a check for my 93-year-old mom’s property tax bill for a rental property she’s owned for 27 years (her source of income) that is due in a couple days.
The valuation finally exceeded the $1 million threshold by $63,000, thereby putting her in the dreaded “Residential A Tier 2” tax category. The tax for her 56-year-old unimproved, single-wall, 984 square foot, nondescript, three-bedroom, one-and-a-half bath rental is now more than double last year’s. The 12-plus-year tenant is a retired schoolteacher.
Some think landlords simply pass on the additional tax to the tenant. It is unconscionable for us to raise the tenant’s monthly rent by $266 to cover the additional $3,200. The ridiculous $1 million threshold for a single-family home needs to be revamped and increased.
Or is the solution to invest in just studio apartments to minimize property taxes by staying under the $1 million threshold, but increasing homelessness by squeezing out occupants? Or sell and displace tenants because property taxes are approaching unaffordability? Not to mention increased insurance and other expenses.
Is it worth being a kupuna landlord today?
Lisa Adlong
Hauula
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