Are you interested in reducing the tax liability on your Spring rental property? If so, then it will be well worth your time to dispute your property value assessment if it leads to a lower tax liability. Regardless of if you are new to investing in rental property or a seasoned professional, analyzing your Spring property value assessment to verify it’s accurate is time well spent.
At Real Property Management Republic, we recommend all of our landlords to take the time to do this because you could find out that your assessment is excessive, which once re-evaluated can lead to lower property taxes. There are various ways to determine whether your current property assessment is right.
How a Property Should be Assessed
Properties are normally assessed yearly by a town or city’s assessor. In most cases, the assessor reviews the current status of your property and any improvements performed 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 own a multi-family building, the assessor will factor in the valuation the income realized from the property over the past year minus maintenance costs. The cost of replacing the home is also a consideration in deciding the assessment.
If you look at your annual property tax bill and nearly collapse from shock at the figures, take some deep breaths and then carefully examine the options you have to reduce the tax bill. One thing to consider, however, is that you’ll have a deadline to dispute the assessment. The majority of 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 might find that you’ve suddenly become the owner of a Spring property that is nothing like the one you actually own. 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 detailed 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 may be able to learn from their assessment. Otherwise, it’s a good idea to compare your property with four or five in your general location that have the same amount of square footage and the same property size.
Look into Exemptions
While taking the time to make sure the valuation of the property is right, also look into whether you’re receiving any exemptions to which you’re entitled. A number of states and many municipalities give breaks to owners who are senior citizens or veterans, homes located in specific areas, and many other exemptions. Your local tax assessor can help you find any tax breaks to which you’re entitled.
Don’t faint when you open your first tax bill after you purchased your property shows that its tax assessment value went up by nearly 50 percent in one year. This should prompt you to ask for a review of your property assessment. Most tax assessors are willing to informally explain your assessment. If you’re not satisfied with the informal explanation, you can file a formal appeal. Property owners who went this route say they’ve been able to lower their assessments substantially.
When you work with Real Property Management Republic, 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 281-362-5001 today.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
