As an investment homeowner, you may be surprised and excited to find out that you could possibly lower your tax liability on your Largo rental property. You may be a seasoned pro when it comes to investing in rental property or you may be new to the investment property business. Either way, you could benefit from having your Largo property value reassessed to determine whether it is accurate.
At Real Property Management TradeWinds, we advise investment property homeowners to take the time to have their property assessed to determine whether their original assessment was too high. This could lead to lower property taxes and more money in your pocket. There are multiple ways to determine if your property assessment was done well. Learn more about disputing your Largo rental property value assessment today.
How a Property Should be Assessed
Your investment rental property is typically assessed by your region’s assessor on a yearly basis. Generally, the assessor reviews the current status of your property, 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 determined by the municipality. If you own a multi-family property, the assessor will factor in the income realized from the property over the past year minus maintenance costs into the valuation. The cost of replacing the home is also a consideration in determining its assessment.
Don’t open your annual property tax bill and nearly faint from the shock of the figures; instead, take some deep breaths and then carefully consider the options you have to lower the tax bill. One thing to remember, 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
One of the best ways to understand your assessment is to look at what it says specifically about your property. It is in this section you may come to realize that the details about your investment property are not accurate. For example, the assessment might mistakenly give your house three bedrooms when it only has two 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.
Additionally, 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 you’re taking the time to make sure the valuation of the property is correct, be sure to also investigate whether you’re receiving any exemptions to which you’re entitled. Some states and many municipalities offer breaks to owners who are senior citizens or veterans, who own homes located in certain areas, and who meet a number of other exemptions. Your local tax assessor may be able to help you find any tax breaks to which you’re entitled.
If your first tax bill after you purchased your property shows that its tax assessment value increased by nearly 50 percent in one year, as happened to an owner in Georgia, it is important that you ask for a review to help you understand any changes. Most tax assessors are willing to informally explain your assessment. If you’re not happy with the informal explanation, you can make a formal appeal. Property owners who have followed this route say they’ve been able to lower their assessments substantially.
When you work with Real Property Management TradeWinds, you will find that 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 727-400-4722 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.
