First Rental Home - Tax Appraised 90% more! Need to Protest.

[Robert K.]

Hello,

I recently got my first rental property in Jan 2012. My 90 year old uncle deeded the property to my LLC for free. I inherited a long term elderly tenant who has been in the home for 20+ years. She pays a very cheap $335/month. I chose not to raise the rent on her since she has very little income and has not missed a payment according to my uncle.

The taxes on the house (tax valued at $24K) for 2011 and 2010 were around $650. FYI, the highest this house has been taxed in the past 10 years was $33K in 2008 and 2009.

I just got the property taxes 2 weeks ago and the house is now being assessed at a tax value of $40K. That has increased the taxes to $1050.

I did get the roof replaced without coming out of pocket in February due to leaks for $3000. That is all that has changed in regards to the home. From my understandings of this particular counties appraisals process, they got and take photos from August 2011 - Dec 2011 to assess the tax value. With that being the case, I would think all actions taken from 2012 do not play a role in the the tax appraisal process. Am I wrong to make that assumption?

I've read up on the country tax appeal process and am ready to protest. I don't see how a home could go up almost 90%. I spoke to a friend and he thinks that since the see that an LLC now owns the home, they just jumped the taxes up. My plan is to get a realtor to look up the sales comps in the area and if that backs me up, use that to protest the taxes. Any other suggestions?

With the tenant only paying $335/month and taxes (and insurance) going up, I need the taxes reduced or she will have to sadly start paying more money. I'd like to prevent it via appeals if possible. All suggestions are appreciated.

Thanks!