Lessening the tax liability on your San Gabriel rental property is worth the effort if you have the opportunity. Regardless of if you are new to investing in rental property or a seasoned professional, analyzing your San Gabriel property value assessment to determine whether it’s right is time well spent.
At Real Property Management Fairmate, we instruct all our landlords to take the time to do this because one might discover that the assessment is excessive, which once re-evaluated can lead to lower property taxes. There are many ways to determine whether your current property assessment is precise.
How a Property Should be Assessed
Properties are typically assessed annually by a town or city’s assessor. In a majority of cases, the assessor evaluates 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 states about your property. You might find that you’ve suddenly become the owner of San Gabriel property that is nothing like the one you actually own. For example, the assessment may wrongly 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 twice 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 and your neighbors are friends, 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 area that have the same amount of square footage and the same property size.
Look into Exemptions
While you’re taking the time to ensure the valuation of the property is accurate, also look into whether you’re receiving any exemptions to which you’re eligible. Some states and many municipalities offer breaks to homes located in certain areas, owners who are senior citizens or veterans, and many other exemptions. Your local tax assessor might be able to 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 near 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. Many tax assessors are willing to informally explain your assessment. If you’re not content 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 Fairmate, we help you get the most out of your property and lead it to success. To learn more about the services we offer, contact us online or call us at 626-691-9749 today.
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