Property Tax and Rental Rate Increases

[Chris T.]

Now that Mecklenburg County and the City of Charlotte have announced their proposed new property tax millage rates, how is everyone planning on addressing their rental rates?  Will you increase rates to fully capture the increased taxes?  Will you add on your typical percentage of rent increase on top?

My properties are averaging close to a 50% increase in annual taxes.

Proposed Rates (as of 5-7-19)

Mecklenburg County      $0.6169 per $100  ($0.02 above revenue neutral rate)

City of Charlotte              $0.3481 per $100  (keeping at revenue neutral rate)

[Johnny Situ]

I will pass along the increase gradually, probably in 2 years. A lot of my rentals’ appraised value are double compared to last year’s, kind of unexpectedly.