Lowering the tax liability on your Vernal rental property is absolutely worth the effort if you get the opportunity. Regardless if you are new to rental property investment or a seasoned pro, studying your Vernal property value assessment to verify its accuracy is time well spent.
At Real Property Management Uintah, we advise our landlords to take the time to do this because you could discover that your assessment is excessive, which once reevaluated can lead to decreased 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. In most cases, the assessor reviews the current status of your property and any improvements made and the current market conditions for similar homes in your area, 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 into the valuation the income realized from the property over the past year minus maintenance costs. The replacement cost of the home is also a consideration in determining its assessment.
If you see your annual property tax bill and nearly collapse from shock at the figures, take a couple of deep breaths and then carefully study the options you have to lower the tax bill. One thing to consider, however, is that you’ll have a deadline to dispute the assessment. Most municipalities will give you 30 to 60 days after you receive the assessment to challenge it.
How to Understand an Assessment
Observe what the assessment says about your property. You may discover that you’ve suddenly become the owner of Vernal 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 real location. In one case, a homeowner’s one-story home with vaulted ceilings was falsely 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 comprehensive 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 area 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 accurate, also look into whether you’re receiving any exemptions to which you’re qualified. Some states and many municipalities give breaks to owners who are senior citizens or veterans, homes located in certain areas, and other exemptions. Your local tax assessor can help you find any tax breaks to which you’re entitled.
If your first tax bill after your property purchased shows that its tax assessment value went up by nearly 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. A lot of tax assessors are willing to informally clarify your assessment. If you’re not happy with the informal clarification, 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 Uintah, we help you get the most out of your property and steer it to success. To learn more about the services we offer, contact us online or call us at 435-214-4686 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.
