Y is for Year End Tax Assessments

The A-Z of Property Management

Y is for..

Y is for Year End Tax Assessments.  Commercial Investment Property’s assessed value is a bid deal.  It’s big to the County to generate tax revenue for schools and other government programs.  And it’s big to the Property Owners as a significant expense.

The process to set Property Tax Valuation and the corresponding Assessment can vary by governmental jurisdiction.  First, a governmental entity, frequently the county, sets the tax rate by law which usually remains  the same  for several years.   Then typically another governmental entity. Typically The  Appraisal District or Board adjusts the value of each property annually. This is where there can be a huge impact on an individual property.

Professional Property Management services should include expertise in evaluating whether or not the “assessed value” is reasonable.  And if not, know how to challenge the assessed value, which if successful can save the property significant expense.

When looking for a professional property management firm to help you with the day to day issues of owning/managing investment real estate, ask them about their policy of addressing Annual Property Assessments, their specific expertise in this area and their track record with other investor owners.