Lowering the tax liability on your Kissimmee rental property is absolutely worth the effort if you get the opportunity. Regardless of if you are new to rental property investment or a seasoned pro, studying your Kissimmee property value assessment to verify its accuracy is time well spent.
At Real Property Management South Orlando, we advise our landlords to take the time to do this because you could discover that your assessment is excessive, which once re-evaluated can lead to fewer property taxes. There are many ways to determine whether your current property assessment is correct.
How a Property Should be Assessed
Properties are typically assessed by a town or city’s assessor on an annual basis. In most cases, the assessor reviews the current status of your property and any improvements made, and the current market conditions for similar homes in your area; then they multiply that by the area’s level of assessment as determined by the municipality. If you own a multi-family building, the assessor will factor in the income realized from the property over the past year minus maintenance costs into the valuation. The cost of replacing the home is also a consideration in determining its assessment.
If you open your annual property tax bill and nearly collapse from shock at the figures, take some deep breaths and then carefully consider the options you have to lower the tax bill. One thing to remember, however, is that you’ll have a deadline to dispute the assessment. Most municipalities will give you 30 to 60 days after you receive the assessment to challenge it.
How to Understand an Assessment
Observe what the assessment says about your property. You could discover that you’ve suddenly become the owner of Kissimmee property that is nothing like the one you actually own. For example, the assessment might erroneously give your house four bedrooms when it only has three or place your address in an upscale neighborhood near your actual location. In one case, a homeowner’s one-story home with vaulted ceilings was incorrectly listed as a two-story house and charged double the actual square footage because the assessor viewed it from outside rather than doing a more comprehensive inspection.
The value of similar properties in your neighborhood can say a lot about your own property’s assessment. If you are friends with your neighbors, you may be able to learn from their assessment. Otherwise, it’s practical to compare your property with four or five in your general area that have the same amount of square footage and the same property size.
Look into Exemptions
While you’re taking the time to ensure the valuation of the property is accurate, also look into whether you’re receiving any exemptions to which you’re eligible. Some states and many municipalities offer breaks to homes located in certain areas, owners who are senior citizens or veterans, and many other exemptions. Your local tax assessor might be able to help you find any tax breaks to which you’re entitled.
If the first tax bill after you purchased your property shows that its tax assessment value increased by near 50 percent in one year, as what happened to an owner in Georgia, you’ll want to ask for a review to help you understand any changes. Many tax assessors are willing to informally explain your assessment. If you’re not content with the informal explanation, you can make a formal appeal. Property owners who have gone this route say they’ve been able to lower their assessments substantially.
When you work with Real Property Management South Orlando, we help you get the most out of your property and navigate it to success. To learn more about the services we offer, contact us online or call us at 407-982-2000 today.
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