The Impact to You
As a multifamily property owner in Texas, you have most likely received a “Notice of Proposed Value” from your local county appraisal office and wondered whether to appeal that value. If you have never appealed this value, you may be unaware of the benefits that a successful (and even an unsuccessful!) appeal may bring.
The Impact on Your Relationship with the CAD
If successful, an appeal will result in lowering a property’s taxable value. This means tax savings for the owner. But even if your appeal is unsuccessful, just by filing it you will have had the opportunity to learn more about your county’s appeal process and build a relationship with your Central Appraisal District (CAD). Building this relationship can be invaluable in later years/appeals.
YOUR Impact on the Community.
In the multifamily industry, tax savings are often passed along to multiple parties; owners may see a healthier bottom line while tenants may see improved amenities and accommodations. However, there are also benefits to owners of different properties. By lowering the taxable value of your property, it may provide evidence for another owner of a comparable property to help lower their taxable value. Thus, the benefits that your property and tenants receive may also be possible for others in your market. Besides improving the lives of those in your communities, the beauty of this type of relationship is that this initial reduction may fuel tax savings for years to come because now the whole market has a lower taxable value. Upward movements in values will be offset by lower starting values.
And those are the two main impacts your appeal could have on both you and your properties, as well as the communities you serve. The next time you believe your property is overvalued by your local CAD, remember that the impacts your appeal can have are far reaching and helpful to all. If you have any questions about pursuing a valuation appeal for your Texas multifamily property, please contact our team of specialists today!
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