Whether you have one commercial real estate property or dozens, there are always challenges to face as an owner. That’s why it’s smart to take tips from the top tier in your field.
In this article, you’ll learn lessons from real estate moguls on how to strategically and profitably manage your portfolio.
What’s one of their biggest secrets to success? It’s simple: appealing tax assessments. Real estate moguls consistently question whether they’re paying their fair share in property taxes. It’s worth taking the time to appeal your assessments, or you could be leaving thousands – or hundreds of thousands – of dollars on the table.
Four Lessons From The Property Tax Strategies Of Real Estate Moguls
- Your assessment might be too high.
Regardless of where your commercial property is located or how large it is, keep in mind that your annual property assessment determines how much you owe in property taxes – and it may be too high. If fact, more than 90% of commercial real estate owners unknowingly overpay their commercial property tax. Your office building, apartment complex or chain of hotels may be facing the same problem.
- You have the right to appeal.
Many companies make the mistake of receiving their assessment and simply accepting it. You don’t have to be like them. You have the right to appeal your assessment for a fair representation of your property’s actual value. Though you still have to pay the amount designated in your initial assessment, you could receive a portion of it back if your appeal is successful. It’s worth the effort to make an appeal if there’s the possibility of saving thousands. But, you must do so quickly. Appeal deadlines vary from jurisdiction to jurisdiction, and you need to act fast.
- You should appeal regularly.
Property values, along with the state of your property, change regularly from year to year. Maybe the real estate market has been down in your area. If so, your property value assessment should reflect that change. Many property owners appeal every year – and for good reason, as 90% of properties are overtaxed.
Stay vigilant with your property tax management process and appeal when needed. Factors like obsolescence, renovations and changes in workforce all impact that value of your property, but assessors don’t have the same insight into the state of your property as you do. You have to make the case for a fair representation of your property’s value.
- You don’t have to do it alone.
Most of the top real estate moguls aren’t personally conducting their own appeals every year, and even if they had the time to do so, they would probably continue leaving this task to a team of experts. You don’t have to manage your commercial property taxes alone. If you want to improve your chances for a successful appeal, it’s smart to partner with a team of property tax management experts who understand the intricacies of the process. It takes the burden off your shoulders and ensures that qualified experts are fighting for you to receive a fair assessment.
Savvy commercial real estate owners don’t leave money on the table – and you shouldn’t either. Take a cue from them: Consider appealing your property tax assessment, and hand property tax management over to the experts.
How much are you leaving on the table? Find out how commercial property taxes are impacting your bottom line by checking out this free infographic.