I suggested Realtor assessments, but the tenant feels those may be inflated.

In my opinion, and as many of you have already indicated, the market that we're in right now is over inflated. 

With a 10% CoC return (not including rent + appreciation increases that keep up with inflation), I'll be set.

So I used this calculator:  http://www.goodmortgage.com/Calculators/Investment...I used the information from one of my properties.  50,000 purchase price.  5% interest for 20 year loan.  650 rent.  2 % home appreciation per year.  2% inflation rate.  

@J Beard,$5K is not inflated.

Due to inflation I am technically paying $200 in 1996 value of money today.

Inflation over the long term correlates to a higher not lower standard of living (crazy but cool).

They essentially inflate the value of properties across the board.  

So our question is, what are others doing to protect their rental properties if property taxes get out of hand due to inflation and you can't raise rents due to a depressed economy.In light of the Canadian dollar dropping, their resulting inflation, the current risk in the economy and the US dollar slowly loosing it reserve status and with the new Dodd Frank bail in banking laws, cash in the bank is now considered a loan to the bank. 

My second answer, using my imagination, might be yes it could if a borrower is not obligated, but then I think they'd need to get around artificially inflating loan income from a bank affiliate, simply moving money from the left pocket to the right pocket.