Lessening the tax liability on your Suwanee rental property is worth the effort if you have the opportunity. Regardless of if you are new to investing in a rental property or a seasoned professional, it is important to analyze your Suwanee property value assessment to determine whether it is a worthwhile investment.
At Real Property Management Executives Greater Atlanta, we instruct all our landlords to take the time to do this because one might discover that the assessment is excessive, which once re-evaluated can lead to lower property taxes. There are many ways to determine whether your current property assessment is precise.
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 go to 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
Look at what the assessment states about your property. You might find that you’ve suddenly become the owner of Suwanee property that is nothing like the one you own. For example, the assessment may wrongly give your house four bedrooms when it only has three or places your address in an upscale neighborhood adjacent to 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 twice the actual square footage because the assessor viewed it from outside rather than doing a more detailed inspection.
The value of similar properties in your neighborhood can tell you a lot about your own property’s assessment. If you and your neighbors are friends, you may be able to learn from their assessment. Otherwise, it’s a good idea 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 taking the time to make sure the valuation of the property is accurate, also investigate whether you’re receiving any exemptions to which you’re qualified. Some states and many municipalities give breaks to owners who are senior citizens or veterans, homes located in certain areas, and other exemptions. Your local tax assessor can help you find any tax breaks to which you’re entitled.
If your first tax bill after your property purchased shows that its tax assessment value went up by nearly 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. A lot of tax assessors are willing to informally clarify your assessment. If you’re not happy with the informal clarification, 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 Executives Greater Atlanta, 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 678-504-8580 today.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.