Are they not following code? Is it done without the knowledge and permission of the twon/city? Is the area not zoned for it? Are they not reporting rental income to the IRS? They need to have done one of these things for it to be illegal. So which was it? And if you don't know, how do you know they HAVEN'T followed protocol or reported income?
It does make a difference because people rent for different reasons and sometimes they rent for extra money and not to help them pay their tax bill or their mortgage.
So? A landlord who owns an apartment complex has to pay property taxes every year regardless of how many- if any- units are rented. Just because somebody can afford to pay their property taxes in the absence of rent doesn't mean they won't use the rent to help pay the taxes.
If they are using ANY of that income for expenses, it is offsetting expenses. If they are sitting on the money because they aren't reporting it and don't want to get caught spending it, why would they rent in the first place?
I have known families who have rented out part of their home so the wife could stay home after they had kids. The rent was kept for upkeep and repairs of the apt and the rest they used for spending money and savings.
In essence, yes but they did not "need" the rental money to pay the mortgage or taxes. If that renter were to leave and they could not find anyone else for awhile, they wouldn't lose their home for not paying their mortgage. If whatever they bought was totally paid off, they would still have that extra thing and their home and not worry about finding a renter sooner than a person who is relying on that money.
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So? A landlord who owns an apartment complex has to pay property taxes every year regardless of how many- if any- units are rented. Just because somebody can afford to pay their property taxes in the absence of rent doesn't mean they won't use the rent to help pay the taxes.
Of course and some do. Many people rent out parts of their home to help pay the bills, many do not.
I personally would not rely on the rent to pay my mortgage or tax bill. That money would have to be all extra money to me.
They rent for extra money.
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