What’s your strategy for dealing with rising property taxes?

What’s your strategy for dealing with rising property taxes?

Specialist · San Francisco · Member since 2025 · 4 posts · 0 votes

Property taxes are one of those expenses that investors can’t avoid, but I’m curious how different people plan around them.

Some investors I’ve spoken with simply assume taxes will increase every year and build that into their numbers.

Others actively review assessments or challenge them if something looks off.

For experienced investors here:

• Do you actively monitor your property’s assessed value?
• Have you ever appealed a tax assessment before?
• Or do you just treat tax increases as part of the cost of owning property?

Would love to hear how other investors approach this.

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  • Blake Anthony CarterBusiness Member
    Real Estate Agent · Austin, TX · Member since 2020 · 101 posts · 47 votes
    6mo

    1. Always protest every year and 2. Pressure test it into your underwriting

  • Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
    6mo

    Hey Ryder,

    Really relevant topic especially for us in the NYC market right now. 

    My take: you should absolutely be doing both. 

    Building in annual increases to your underwriting is just smart conservative modeling, but that doesn't mean you should accept every assessment without looking at it. Assessments are wrong more often than people realize and most owners never challenge them simply because they don't know they can or think it's too much work.

  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    6mo

    Buy conservatively, costs always run higher than expected. 
    Appeal every increase. 

    Yes I have successfully appealed a number of my rentals. I use a professional appeal service. 

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