Reducing the tax liability on your Temple rental property could be well worth your time and effort if you can have your rental home reassessed. Regardless if you are new to rental property investment or a seasoned pro, studying your Raleigh property value assessment to establish whether it’s accurate is time well spent.
At Real Property Management Talent, we advise all of our landlords to take the time to do this because you might realize that your assessment is too high, which once re-evaluated can lead to lesser property taxes. There are many ways to determine whether your current property assessment is correct.
How a Property Should be Assessed
Properties are typically assessed annually by a town or city’s assessor. Commonly, the assessor will evaluate the current status of your property and any improvements made and the current market conditions for similar homes in your area, and then they multiply that by the area’s level of assessment as established by the municipality. If you have a multi-family building, the assessor will factor into the valuation the income realized from the property over the past year minus maintenance costs. The cost of replacing the home is also considered in determining its assessment.
If you open your annual property tax bill and almost collapse from shock at the figures, take some deep breaths and then carefully consider the options you have to reduce the tax bill. One thing to remember, however, is that there is a deadline to dispute the assessment. Most municipalities will offer you 30 to 60 days after you receive the assessment to challenge it.
How to Understand an Assessment
Look at what the assessment says about your property. You may find that you’ve suddenly become the owner of Temple property that is nothing like the one you actually have. For example, the assessment might mistakenly give your house four bedrooms when it only has three, or place your address in an upscale neighborhood adjacent to your actual location. In one case, a homeowner’s one-story home with vaulted ceilings was incorrectly listed as a two-story house and charged double the actual square footage because the assessor viewed it from outside rather than doing a more thorough inspection.
The value of similar properties in your neighborhood can tell you a lot about your own property’s assessment. If you are friends with your neighbors, you might be able to learn from their assessment. Otherwise, it’s a good idea to compare your property with four or five in your general vicinity that have the same amount of square footage and the same property size.
Look into Exemptions
While taking the time to ensure the valuation of the property is correct, also check whether you’re receiving any exemptions to which you’re entitled. A number of states and municipalities offer breaks to owners who are senior citizens or veterans, homes located in specific areas, and other exemptions. Your local tax assessor can help you find any tax breaks to which you’re entitled.
If the first tax bill after you purchased your property shows that its tax assessment value increased by almost 50 percent in one year, as what happened to an owner in Georgia, you’ll want to ask for a review to help you understand any changes. Majority of tax assessors are willing to informally explain your assessment. If you’re not satisfied with the informal explanation, you can make a formal appeal. Property owners who have gone this route say they’ve been able to lower their assessments substantially.
When you work with Real Property Management Talent, we help you get the most out of your property and navigate it to success. To learn more about the services we offer, contact us online or call us at 254-401-0400 today.
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