In general prices are set by the ability to pay, not by the input costs + some "fair profit".
Many landlords have no mortgage, and are clearing loads of profit every single month. Are they charging lower rent because they only need "fair profit"? No, they charge the market rate.
You pay the max you are willing to pay for renting a place. You won because everyone else was willing to pay less.
If your rent is 2000 and property taxes are 200, and they go up to 300, are you willing/able to pay more?
Land taxes carry no dead weight.
http://wealthandwant.com/themes/Not_Passed_On.html
In general prices are set by the ability to pay, not by the input costs + some "fair profit".
Many landlords have no mortgage, and are clearing loads of profit every single month. Are they charging lower rent because they only need "fair profit"? No, they charge the market rate.