But it sounds like maybe the landlord is trying to collect the difference without declaring it as income.

Simultaneously, no one is going to declare income and pay taxes on it, if it isn't real, but all sorts of people might make up all sorts of boastful income claims ...if they don't have to pay taxes on it.

They are considered  tangible property and must be declared each year for taxation purposes.

You bought in a bad area frankly, your going to have to muscle your way out and buy up the neighborhood and improve the region, or comes to terms with it.

YesAnd yesterday - what can you tell me about this felony you've declared... wife bristles "it was a loong time ago, we're church people now" Come home, look it up, still on probation for possession of meth with intent to distribute...And a new one for me yesterday... one member of the couple has a VPO against the other... uh, no thanks.And one more recent favorite... all the same 'candidate.'

On a landlording thread a guy advocates for illegal things, has no clue muscle isnt proper.

They declared, "I am retired on two properties." and many said, "what is the worst that happens, I go back to my W2 job?"

If he thinks his cap rate "return" is an accurate coc then consider him dividing his NOI by HIS purchase price and declaring a 10% "return" and a 10% coc.

FINALLY with the new laws they understand they can't do that.I have the option of permitting as an ADU, or declare it as a 2nd home on property (as zoning permits it) then building another building that's an ADU.

If they start to get their life together they'll probably declare bankruptcy.Believe me, if I thought they had any ability to pay, I'd sue, but hearing about no electric, and seeing that mess, I think they are more concerned with getting high TONIGHT, than paying anyone.