Long time no speak. Hope everyone has been well ...

Anyways have a couple questions as I had an assessment rise of 28 % over last year considering challenging but need more information first. ( he indicated my region probably really increased about 40 %). Also in general I believe that 2, 3 or 4 plexes of a certain size square footage have generally been less in value vs similar size single family homes, perhaps because of basic quality of furnishings, kitchens, bath costs most likely in each scenario.

Our assessor is now contracted to our city, should not matter. He has 9 zones which he considers for assessing purposes. I asked a few questions last week and he does not distinguish between single family homes and rentals. Not even a multi family category, of which mine is a tri plex. He noted that some homes flip back and forth between homestead and non homestead ( rental ). I did mention that my opinion that argument would be true for single family dwellings, but not the case for 2 or more family properties ....

Anyways the other issue is that there is an income approach as another method of assessing value and this is not used but if it was he would need to know income ( expenses ?) by property and his thoughts that assessed value would probably be higher if he used this methodology. This is my main question today for everyone. Many years ago I did read a bit about this approach but it hasn't applied to me and now the details have sort of evaporated. Can anyone give me a document or give an explanation of this method ? Also maybe I should have checked MR Landlord books first, but if anyone can help, appreciated. I have hearing dates tomorrow and Tuesday if I choose to challenge.

Sorry for long winded post but each little piece helps paint the picture ....

Thanks for any information ....

I had a couple small increased and some slight drops but one more than doubled near cleve!and clinic, the answer was riding demand which I countered that the cost of street repairs is virtually the same as 10-20 blocks away and I thought it was not based on real costz.

Jeff,

Your assessment, whatever it may be, should not be affected if you live in a property or not as your main residence. Living there and the homestead exemption would only lower your taxes by the amount the exemption provided.

As to the actual value of a place, houses and duplex, triplex and even quadplex, I think, are assessed by comparable sales in the area.

5 unit and larger should be assessed by income approach.

Some assessors use the replacement value approach.

Usually though, it's comparable or income unless it's a specialized building.

To get a reduction, you'll need to convince the panel that the house or building is worth less for some reason than the assessor says it is worth. Gather comparable sales in the area. Compare by age, condition, zoning, square feet, etc and see if your places are out of line. If they are, use that as your argument. You likely don't have some limit imposed as to how much they can raise the assessment like in some states.

If you lose and can't get it reduced, either pass the increase on to the tenants or sell.

Try to get people elected that will put caps on assessed increases. Tell the tenants the increase is due to those they elected doing this to them.

I have won my assessment challenges. 1 assessor even thought that I should become one.

Find other similar properties and if different $$$ per sq ft argue that the appraisal is wrong- these are income properties !

Hopefully even if appraisals across the board go up then your rate per $1000 goes down so you pay almost the same.

We have been faced with the income question many times at the Board of Assessors hearings.

The board members usually ask what the income is and we tell them it's not a matter because its value for "property" tax value does not depend on income. Some still push and our bottom line is this. OK we'll give you the income approach but you must also take into consideration, if your going that route, vacancy factor, not just what it could make. END of conversation.

that information is worthless in making your case

What you need to prove is that any like kind buildings in your town are assessed for less

Only then do you have a claim

Real estate assessments on all identical building is easily available at your tax assessor by asking for a run of their data base on identical buildings. IE : 3 bed 2 bath 1 acre