Actually they will be able to ask for higher rents, as with lower sales and income taxes, the renters suddenly have extra cash that will eventually trickle towards rent.
That's if there are actually reductions in income/sales taxes. If the LVT money is instead invested in say mass transit, the population as a whole benefits, but rents don't increase, because money supply doesn't increase.
This is subtly wrong. Taxing rents instead of labor and consumer goods makes leasing less profitable (assuming government expenditures don't favor landlords) and creates opportunities in labor and consumer goods, in which erstwhile landlords can engage.
