Posts Categorized: Property Taxes

Multifamily Property Taxes in the Covid-19 World

3 Points to Keep in Mind When Appealing

Right now, the safety of your team members, residents, and the uncertainty resulting from this pandemic have likely pushed property taxes to the far regions of your mind. Not to worry, we exist to handle your property taxes so you can rest assured they are being addressed while you handle the critical issues facing your company.

Rising unemployment and government-mandated stay-at-home orders have a real impact on your residents and their ability to pay rent, directly impacting your gross income. Government restrictions have limited the ability to address non-payment and much about this year remains uncertain. One certainty, PROPERTY TAXES will come due regardless of how your property performs.

Whether you engage a tax consultant or appeal your own properties, here are three important points to keep in mind when protesting your valuation this year:

1. How are the current conditions impacting your rent collections?

2. Have your expenses increased due to higher usage or restrictions?

3. Last year property sales may not correctly reflect the market valuations today.

It is more important than ever that you engage multifamily property tax specialists to represent your properties and combat the rising property valuations. Reductions to your property valuation will directly impact your taxes and affect your bottom line, helping your cash flow when you need it most.

Wayfinder Tax Relief, LLC is the #1 multifamily property tax specialist in the industry. They focus solely on multifamily properties and are at the cutting edge of the industry change. They are involved in many local apartment associations and are members of the Texas Apartment Association and the National Apartment Association.

Is Your Tax Agent a Multifamily Specialist?

The greatest in the world in any field, be it surgeons, athletes, musicians, etc, are those who are dedicated to their craft and repeatedly focus their efforts on excellence. Others may practice, but the greatest consistently perform, and then ask, “what was the result and how can it improve?” They then do it again. They do not stop when others stop. They do not give up when it is difficult or seems impossible. They persevere, never letting obstacles stop them from their goal of excellence.

Our society values and rewards specialization. Just look at the salaries of specialized surgeons, athletes, or musicians. If I needed heart surgery, I would seek out the best heart surgeon, not my primary care physician. I know that my primary care physician, while a capable doctor, is not the best for what I need: heart surgery. A professional baseball team needing a pitcher, would not search out an outfielder to fill their need. While both players are skilled, their specific expertise does not translate to excellent performance.

Why should hiring a tax agent be any different? Most property tax firms are like primary care physicians. They are capable of general care and are helpful for common issues, but unfortunately, that does not mean excellence for any specific property types or issues. On the other hand, multifamily specialists, like heart surgeons, focus only on multifamily properties. They are dedicated to excellence, consistently perform, and then ask, “what was the result and how can it improve?” They then do it again. Right now, it is more important than ever that you have the best multifamily property tax expert on your team helping your company weather the economic storm of Covid-19. Hiring a multifamily specialist can save you time, reduce your property tax expenses, and be the game-changer you need right now.

Wayfinder Tax Relief, LLC is the #1 multifamily property tax specialist in the industry. They focus solely on multifamily properties and are at the cutting edge of the industry change. They are involved in many local apartment associations and are members of the Texas Apartment Association and the National Apartment Association.

Buying Multifamily Property? Please Pass the SALT.

There are many factors to review and consider when buying a multifamily property. Property taxes are just one of those factors. The lagging effect of property taxes can be deceitful when evaluating their impact on a sale. Unfortunately, many times property taxes seem to be glanced at, but not thoroughly evaluated. Using last year’s tax bill is a start, but depending on the jurisdiction and their rules, you may be setting yourself up for a nightmare.

In Arizona, properties can have their taxable value changed when parcels are combined, split, or when significant changes are made to the structure. Deals that were financially viable on first review, can become complete financial losses if a revaluation is triggered. Since property taxes are a lagging factor, buyers may not see any effects until the following tax year. In one case, where a taxpayer consulted us after the deal, they were shocked to learn that the taxable value increased over 44% because of a parcel consolidation. Had they known the law they would have killed the deal.

In other states, such as Texas, the seller and buyer are not required to disclose the purchase price. When the purchase price is disclosed, the appraisal districts attempt to use it to value at sale price. Buyers and sellers from full disclosure states such as California sometimes volunteer the sale information not knowing that it is not required. In many cases, this not only causes their property to be reassessed at a much higher value, but the other multifamily properties in the community are increased based on the sales approach.

Seeking council from property tax experts can help you avoid some of these pitfalls and can help the community at large. When we work together, we can help keep the property taxes lower for all.

Wayfinder Tax Relief, LLC is the #1 multifamily property tax specialist in the industry. They focus solely on multifamily properties and are at the cutting edge of the industry change. They are involved in many local apartment associations and are members of the Texas Apartment Association and the National Apartment Association.

Travis Central Appraisal District is Slammed by the Judge

Travis Central Appraisal District (TCAD) has become quite unfriendly to taxpayers over the past several years. In 2019, they refused to give in-person informal meetings. Then they failed to meet their statutory deadline to produce evidence to protesting parties, which resulted in the Appraisal Review Board (ARB) attempting to dismiss an entire day’s worth of hearings. Ultimately, the ARB did not dismiss those hearing decisions.

In 2020, TCAD will be bringing back in-person informal hearings, but with the caveat that the appraiser meeting with you does not have the authority to make any changes based on your evidence in the meeting. They are simply receiving your evidence to then have it reviewed by a panel and a decision sent within about two weeks after your meeting. That effectively removes the taxpayer’s ability to have an open discussion and correct any misstatements made by TCAD among themselves.

TCAD has also chosen to file protest ARB decisions without specific written authorization of the board of directors. But finally, after all the anti-taxpayer rhetoric, District Judge Catherine Mauzy signed an order on February 11, 2020 to dismiss TCAD vs. Texas Disposal Systems Landfill Inc. This significant order requires that TCAD must have written approval of the board of directors to file a specific appeal of an ARB decision. Hopefully, this will slow down TCAD’s protest of ARB decisions.

For the original article: https://theaustinbulldog.org/judge-undercuts-chief-appraisers-authority/

Wayfinder Tax Relief, LLC is the #1 multifamily property tax specialist in the industry. They focus solely on multifamily properties and are at the cutting edge of the industry change. They are involved in many local apartment associations and are members of the Texas Apartment Association and the National Apartment Association.

First-Hand Knowledge: How to Secure the Best Multifamily Property Tax Reductions

You wouldn’t buy a property without doing the due diligence of an in-person visit, maybe even more than one. Google Earth or satellite views are nice tools, but they can’t replace being physically at the property and seeing the asset first-hand. Why should representing your property in a property tax protest be any different?

How can your tax agent know the issues your property is truly facing: location, demographics, shifts in the economy, storm damage, etc. without visiting your property? In short, they can’t truly know. They may make assumptions, or guesstimate about effects, but their testimony will lack the fullness necessary to achieve the best results at the board hearing your protest.

Tax agents who put their clients’ best interest first, will visit your property annually. It may be time to give your tax agent a grade. Ask your agent when they last visited each of your properties. Have them show you pictures and notes taken on their visit. Will they make their contingency fee conditional upon visiting your property? If not, why won’t they commit to giving you the representation you deserve to achieve the best tax savings?

We make the Wayfinder Guarantee part of our business. We guarantee to visit our client’s properties annually or we won’t charge a fee for our services. We know that we provide the best representation when we physically visit the properties, the communities and the jurisdictions where they are taxed. This process has allowed us to consistently secure bigger and better reductions than our competitors.

Wayfinder Tax Relief, LLC is the #1 multifamily property tax specialist in the industry. They focus solely on multifamily properties and are at the cutting edge of the industry change. They are involved in many local apartment associations and are members of the Texas Apartment Association and the National Apartment Association.

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