Thursday, September 17, 2009

Regulations and Taxes Keep Costs High


Herewith, P-Mac writes a parable (and there's more to it than I'm quoting here.)

The Public Policy Forum a few months back said Milwaukee's really short of low-cost rentals. If more people went into the business, researchers said, it could help. Yet Ballering, who's owned for 32 years, told his son to find another occupation: "It's such a difficult business," said Ballering.

Ballering owns 400 rental units in the City of Milwaukee. Clearly, he would not be a good reference for the City when they are looking for "more people" to go "into the business" of owning rental properties.

Milwaukee city officials, too, don't make it easy for landlords. The city's an expensive place to own apartments, many say. Taxes are high, and "there are just so many regulations against us," said Pettit. Don't get him started about the nuisance property law, by which landlords can get in trouble if a tenant calls 911 needlessly.

The Department of Neighborhood Services until lately was a particular cross. "There was a real culture of hatred in the city towards property owners," said Ballering. "Starting with DNS."

Ballering, Pettit and others said things are improving under DNS's new commissioner. Others credit police with cleaning up prostitution and gang trouble.

It's good to know that DNS' attitude has changed, and that the cop-shop is FINALLY getting around to fixing crime problems.

But in the end, the cost of regs and taxes drive the cost of rental properties. One cannot demand "lower cost rentals" AND impose high costs on landlords simultaneously.

Umnnnnhhhhhhh--yes--there is another issue which has a number of resemblances. It's called "healthcare."

You can look it up.

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