Anyone has Property Tax Appeal Software?

Question

How many real estate investors (SFR primarily) regularly check their property taxes and appeal them? If you do, what type of software do you currently use since we are looking for a solution that is not just getting a lawyer

Ian Tan · Answer

Given that taxes are a high % of operating expenses and could impact cash flow for the property, it sounds like the process is an afterthought since 1. the burden of proof is high? and 2. the existing framework caps increases, which feeds into 1?

Is that fair assessment look?

Randall Alan · Answer

I have less of an answer for you and more of a comment. Typically property appraisers tax a property  at 15 to 20% below market value specifically to avoid people protesting their taxes.

What this means is that in order to win a tax appeal, you have to show that you’re being taxed by more than 15 to 20% over what the properties fair market value is… and that is just to get to break-even… not any savings.  That’s a pretty tough proposition usually if the county is doing their job right.

Also keep in mind when looking at comps of other properties that sometimes there’s grandfathering that is going on… In Florida there is a state law that prevents counties from raising property taxes by more than 3 to 4% per year. This creates a grandfathering effect where if you’ve owned your property for a long time and prices have really risen that they are not able to tax you at its fair market value or that 85% of fair market value.   Those properties can have significantly lower taxes just because they haven’s sold recently.  So you have to look for comps that have sold since your property  sold last for them to be a similar comparison where I live.

So not saying it can’t be done… but it isn’t always an easy task to win. all the best!

Randy