HomeMy WebLinkAboutCOM 0600.048 2022-2024p Council
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From: April Nelson
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Sent: Tuesday, July 23, 2024 10:57 AM
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To: Council Testimony
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Cc: April Nelson
Subject: Support Bill 104, Draft 6
Aloha County Council,
I am writing in Support of Bill 104, Draft 6 for the creation of a Long Term Rental Class for Real Property
Taxes. This bill will encourage more owners to provide stable long term
rental housing for
residents, and help keep tenant rents more affordable.
Currently, with property taxes increasing significantly as home values increase, many landlords must
increase rents to cover these expenses. This makes housing unaffordable for many renters. If costs get
too high, landlords are choosingto sell. Lower costs = lower rents. This billwill help keep rents lower,
and keep the same residents in the same home for longer.
Many renters are not in a position to buy. I work in the mortgage industry and see this heartbreaking
reality for many residents everyday. We need to encourage long term rentals with this bill.
One may think that "greedy" landlords are making tons of money and should be able to cover higher
taxes. However, the days of making money on long term rentals are over - especially for those buying
homes in more recent years. Significant increases to interest rates, home values, insurance, property
taxes, and HOA dues, make homeownership more expensive than ever.
Example: A basic three bedroom home in Kona rents for—$3000-$4000/mo. If this home cost$800,000,
and a buyer put 20% down, their payment would be over $5000/mo. Over$700/mo would be property
taxes.
This bill will encourage longterm rentals by reducing owners' monthly losses without them having
to significantly increase rents.
Price
$ ;`
800,000,00
Down Payment 20%
$
160,000.00
Loan Amount
$
640,000.00
Principal & Interest (Mortgage/ma)
$4,474.97
Insurance Estimate
$
150.00
l?rcrpr#y ax (Estimate based.on $SDOK vale)
740 00'
HOA Dues
$
Total Monthly ESTIMATE
$5,354:57',
Please support Bill 104, Draft 6 to help encourage stable long term rental housing for resi n
Comm. N .
Ref. To:
Ref. Dote JUL
Thankyou,
April Nelson