Rising property tax in Houston, Texas

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Rising property tax in Houston, Texas

Sakib J.
Investor · Los Angeles, CA · Member since 2020 · 154 posts · 32 votes

Hello BP

I am struggling with rising property taxes in Houston, TX. With constant increase in home insurance and ppty tax... tough to be cashflow positive.

How are you guys dealing with it?

I hear there are companies who fight on your behalf to lower your ppty taxes. Has anyone here heard of that?

Appreciate any tips or advice.

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Wale LawalBusiness Member
Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
5y

@Sakib J. 

Yes I have experienced significant increase in my properties assessed value and this mean I will be paying more taxes. 

I am currently challenging the assessed value through a well known property tax consulting company in Houston. I don't pay them except they are able to get the assessed amount reduced. 

Their fee is calculated as Amount they reduced your property by X your tax rate X 0.45. 

For example if they reduce your property assessed value from by $20,000 at 0.025 tax rate: 

$20,000 x 0.025 x 0.45 =  $225 

This is not a bad deal for me if they deliver as promised. 

Goodluck to everyone.

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  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    5y

    Property taxes are through the roof here as well and it will get worse in many markets. Counties have put a lot of justification in as a defense wall and with the way property values have increased it is a tough battle for the owner of the asset. We have submitted docs, and attended Zoom meetings but have not had any victories yet.

    0Reply
  • Matthew Rolf
    Insurance Agent · TX · Member since 2018 · 362 posts · 175 votes
    5y

    @Sakib J. yeah insurance rates are way up too, you're right.  For taxes, every year you should be getting a mailout of your assessed value for the year with a form that you can fill out to protest that opinion.  At the very least, you should be filling out that form every year.

    0Reply
  • Robert Belz
    Investor · Las Vegas, NV · Member since 2017 · 59 posts · 34 votes
    5y

    Hi @Sakib J.

    I'm originally from San Antonio, TX where the property taxes are just as insane! We had a SFH as an investment for a number of years, but as the property taxes continued to rise, the increased payments no longer made the home a worthy investment, resulting in us selling a few months ago.

    Each year after receiving the county's assessed value, I would go to the courthouse in person to formally protest the assessed value. Before going, I would ask the county to provide their evidence. This typically was a giant excel with hundreds of addresses in the surrounding area. From their, I would find certain metrics that helped my cause. For example, the first year I protested, I realized the county was counting the attic as livable space...(it was a one story home, and the attic was full of insulation... like every other attic). 

    Although going in person never stopped the assessed value from going up, it always reduced the amount increased by thousands of dollars, thus saving us hundreds throughout the course of a year. 

    Good luck!

    1Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    5y

    @Sakib J. 

    Yes I have experienced significant increase in my properties assessed value and this mean I will be paying more taxes. 

    I am currently challenging the assessed value through a well known property tax consulting company in Houston. I don't pay them except they are able to get the assessed amount reduced. 

    Their fee is calculated as Amount they reduced your property by X your tax rate X 0.45. 

    For example if they reduce your property assessed value from by $20,000 at 0.025 tax rate: 

    $20,000 x 0.025 x 0.45 =  $225 

    This is not a bad deal for me if they deliver as promised. 

    Goodluck to everyone.

    [email protected]832-776-9582Podcast Guest on Show #469
    NETWORTH BUILDERS5236 Reviews
    WebsiteView Page
    3Reply
  • Bob H.
    Rental Property Investor · Cedar Park, TX · Member since 2014 · 414 posts · 272 votes
    5y

    I've been phasing out investments in Texas for the last few years, for just this reason.

    Protesting your assessment is a cottage industry in Texas, and that can help, but the real problem is the attitude of most local officials. They look at increases in the property tax base as a reason to increase their spending by an equivalent amount. (Schools are the worst offenders; high schools have giant football stadiums that are used for a handful of home games each year.) The local officials don't care that a normal homeowner does not automatically have a higher income to pay the higher property taxes that come with appreciation. Texas is headed for California's situation in the late '70s, when owners were priced out of their homes by taxes. That led to the tax revolt of Proposition 13.

    In some jurisdictions, as a sop to taxpayers, the local officials reduce their tax rates by a small amount each year, but never enough to offset the big increase in tax collections created by higher assessments. They also dole out various exemptions, none of which help investors, as essentially a bribe to avoid opposition to their spending.

    1Reply
  • Paul Leavitt
    houston, TX · Member since 2017 · 56 posts · 24 votes
    5y

    That sounds like a great company @Wale Lawal, mind dropping their name for us? I'd love to reach out to them.

    Thanks!

    0Reply
  • Cameron TopePro Member
    Property Manager · Katy, TX · Member since 2015 · 1k+ posts · 1k+ votes
    5y

    Hey Sakib,

    Like @Wale Lawal - I have seen prices rise over the previous 7 years of owning and managing rentals across Houston. 

    We use Ad Valorem tax. They take 35% of the taxes they save you. 

    They operate in all counties around Greater Houston and they have saved me thousands in taxes. 

    [email protected]832-770-7090
    1Reply
  • Polina Orlova
    Rental Property Investor · Toronto · Member since 2018 · 16 posts · 2 votes
    4y
    Quote from @Matthew Rolf:

    @Sakib J. yeah insurance rates are way up too, you're right.  For taxes, every year you should be getting a mailout of your assessed value for the year with a form that you can fill out to protest that opinion.  At the very least, you should be filling out that form every year.


    Thank you. Can you help and give me an example of insurance rates for SFH in Houston in A,B areas? I am looking to buy but Zillow is of now help.

    0Reply
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