I think about this constantly, seems every article is the constant threat of a new tax or increasing taxes.
I invest in the Quad Cities. I have no problem finding great deals on the Illinois side just because everyone is afraid of the taxes. They cash flow well in spite of taxes being 25% more than my home state of Iowa. As far as the future, Illinois took some steps last year to improve their fiscal situation. I’m of the opinion that property taxes can’t jump too much higher. Long story short, if it cash flows, look at it.
We have been investing in Illinois since 1993. RE Taxes are a pain. That you as a landlord must pass onto your residents at renewal. Send them copies of the assessment cards and explain that it is not your fault.
Our attorney is drafting a lease provision allowing for an annual dollar for dollar rent increase based on real estate tax increases. It will be available to members of our REIA shortly. See contact information below. Enough tenants get impacted by this they may change things in Springfield.
Everyone needs to appeal their real estate taxes annually. Especially after you receive a notice of assessment. It is too late to appeal after the tax bill is in the mail. We have already submitted our requests in Saint Clair County.
Everyone needs to join their state association sponsored by National REIA to fight bad legislation and receive the Professional Housing Providers designation. In Ohio, PHP landlords are treated better than those who are not.