Protest property tax assessment

[Simon Stahl]

I just got the 2019 assessment for a tri-plex that I bought in SA last year. Last years assessment was 93k and they want to jack it up to 116k for this year. The purchase price that I payed last May was 104k, but when I look at the filed deed, it shows only $10. There are no other tri-plexes in the area that have sold within the last year to compare to.

The increase feels excessive, but I have no experience in protesting assessments. What value would you recommend I should shoot for and with what argumentation?

[Rick Pozos]

Hey @Simon Stahl,

I am sure that you know Texas has a higher tax rate because school tax is included with property taxes unlike CA. The tax rate is just under 3% per year in most areas around San Antonio. If you have a triplex that is valued around 100k you are doing FANTASTIC. Stop Complaining. You are probably getting at least $600 per unit or $1000 if they are 2 beds. That has to be 24k+ per year. 

The difference of 93k to 116k per year is about $50 per month for the whole property or about 2.5%. I would bet that you estimated that expenses would go up 3-5% per year. That is right in there. 

When you are in a good market, costs go up and so does the value of your property. Next year you should be able to raise rents a little to offset some of the increase of expenses. This is a longterm game.