Attention Cleveland Landlords

10 Replies

This is just a reminder that the dead line to file a complaint in cuyahoga county against the valuation of your property is 04/02/2018. Also, if you are looking to purchase any rental properties, you might want to consider having an appraisal done on the property as soon as you purchase the property. Reminder that taxes are a large expense and if able to reduce it will help cash flow and cap rate. If anyone has any appraisal questions in the greater cleveland area, feel free to reach out.

Vince.

Can you explain this a little bit more. 

Do an appraisal now so that you can set the property value before 4/2/18 because at that date they're increasing the property taxes? 

@Antoine Martel What I am saying is that when you file a dispute with the county you can provide an appraisal which will make dispute a lot more creditable or you can provide your "bias" comps to them and then they review them and most of the time they do not accurately lower value to where it should be. Also, for those who buy rentals, having an appraisal done as soon as you purchase will also have a lot of benefits (not having to worry about property being occupied or being in the middle of any repairs that are being done, etc). I suggest everyone who has rental properties or even there personal property to see where the county values their property. Hope this helps. 

You don't need an apparisal if purchased recently

A purchase contract and hud-1 is sufficient if the property was purchased less than what it's valuation is on the county tax site. Note this is on a recent purchase

@Federico Gutierrez All the properties you have purchased automatically reduced to the amount you purchased for or all you had to do was show purchase contract and hud and property was reduced to that amount without any issues? If so, you must have gotten lucky as that has not been my experience. 

Also, I have been to the cuyahoga county board of revision a few times. They always toell me that it was a distressed/non arms length sale and that true market value is greater than purchase price. I would like to hear other people experience in the cleveland area (cuyahoga county or lake county). 

Im at 100% win rate.

I turn up show them the contract, the hud-1 and a copy of the MLS print out

All my deals have been at arm's length so they can't argue that I bought it at market value and they have over taxed me.

Yes distress PR or sherrif sales you ain't got no chance at reducing your taxes

I have won distressed sale reductions. Serous reductions at that.

I recommend using a tax appeal attorney for this. And if you own your property in anything other than your own name you need an attorney to file it anyways.

I can highly recommend the one that we have used multiple times if anyone PMs me. They took it down to Columbus for appeal when the BOR denied my reductions.

Updated 5 months ago

*serious

Interesting.  I have always thought I am paying way too much in property taxes in Cleveland.  I pay about $1200 per year for a $30,000 property.  I bought four properties together on a land contract, so the title is not in my name yet.  Would I be able to get a reduction if this is the case?  Thanks for the input.

@Jason Johnson The question would be what is the appraised value at the county (that you are paying tax on) vs. what you can prove it is worth (through a purchase or comparables). 

On a land contract, I would assume the owner would have to file or that he would have to give you POA to file on his behalf as his agent. Once again, if he holds title in anything other than a personal name, an attorney would have to file it anyways.

@Jason Johnson aside from the current owner having to file (it's their name currently on title) as @Ryan Arth points out, you may also face a challenge when your name goes on title as your contract will likely be a few years old (2, 3, more?). The BOR could then argue that the market value has changed since the contract was signed.

You should speak to a lawyer that does this regarding your options and it should not cost you anything just for a chant. There are several around Cleveland who only do this like Sleggs, Danzinger & Gill. I've used them a couple of times (successfully).

Good luck,

Oren

@Ryan Arth , @Oren K. Thanks for the tips guys.  It is a 5 year contract and we are about 2 and a half years into it.  I will give one of the attorneys a call and see what I can find out. 

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