The significant difference is that taxes are assessed on an impartial basis - usually a percentage of current market value. The classic problem with landlords is that tenants have no incentive to increase productivity when the landlord captures all of the gains by increasing rent. Even today, businesses often end up in situations where the landlord sees that they're doing well and jacks up the rent in the belief that moving to another location will be too disruptive. My municipal government can demand property tax, but it doesn't hike it every time I get a raise at work.