Chicago property Taxes are crazy - How are you managing this increase

[Zulf H.]

Hello BP Members, taxes. 

Hope everyone is doing well. I have noticed the Chiago property taxes have gone up significantly. I noticed that the multi-unit bldgs in my portfolio saw a much higher increase in property taxes compared to my SFH and condos.

I also noticed the property insurance ( Statefarm ) has gone up even though i have no claims.

I would like to know how other landlords are addressing the issue of higher property taxes and property insurance. I am working with a law firm to contest the tax but its not helping. 

Your advice is appreciated.  

Thanks, 

Zulf.

[John Warren]

@Zulf H. the taxes go up every three years here in Chicago, and they are really more predictable than people think. You may have purchased way below your assessed value, and it may have caught up with you? I don't think the RE taxes should be the driving factor in not investing here personally. There are many states that have high RE taxes where people still love to invest.

Make sure you are pushing rents, and make sure you do this annually. This isn't a greed thing, but instead is a way of making sure you are building in margin to adequately maintain your building and account for rising costs.