City property assessment

[Ader Viloria]

I recently purchased a 9 unit residential apartment building, the city sent out a third party assessor to evaluate the property for property tax purposes. I owned the property since July, 2018, on the assessors report he claims the property increase in value $184,100 between 2018- 2019, which will skyrocket my property taxes by a lot. The property is in Stoughton WI, no improvements were made and leases are below market due to previous landlord. I mean everything for the most part is original to the building, how is it posible that this guy comes and assets the property with out setting a foot inside any unit and claim that in 1 year the property when up almost 200k? Is there a way I can reject his assessment? It is still below the bank assessment but $184,100 increase seems a bit excessive considering is not a major city and no improvements had been done, any body familiar with assessments and stuff like this? I just fear the increase will eat up the money needed to improve the place and tenants life. Any advise on how to reject that or lower that assessment with the city?

[Timothy G.]

Good luck with that!  This has been going on everywhere in the country.  I believe most counties know that a recession is looming around the corner.  They know that the properties need to be reassessed to lock in their tax revenue for their own current and future expenses.  If Stoughton is anything like Appleton, all of the government buildings have been getting huge facelifts or new buildings over the past 5 years.  Officials have been all getting nice raises and we have new fire trucks and snowplows, etc.  Where does all that money come from?  Have you been told that the higher valuation in your assessment won’t raise your taxes?  You believe that?

Did you get an increase in your investment income? Were you able to remodel any of your properties this past year with the increased revenue?  No?  

You can argue it and you might get them to lower it but I highly doubt it.  Not in Stoughton. My suggestion is to simply do what they have done, what every business does, pass it off on the consumer.  

Raise your rents my friend, raise your rents.

I just want to make this last point.  Have you noticed all of the self storage facilities popping up?  They know that once a tenant moves in, they can gradually increase their rents. The tenants will pay the higher cost because it’s too much of a haste for them to move their stuff out and easier to just keep it there and pay the extra rent amount.  Actually the increase in rents on storage units is far higher over the past 5 years then the increase in rents on apartments as a percentage.   I think there is a lesson to learn there.  Your costs are going up(or soon will be) your building is depreciating, things need repair and you want to improve the place and the tenants life. Improvements cost money and lots of it.  I know raising the rent can be hard to do but you did buy the place as an investment right?