If you have asked us to appeal a commercial property, please read this document. 

State statutes prefer that a commercial property is valued by the county assessors using the “income” method rather than using comparable sales. (TaxDetective usually also considers comparable sales in its analysis.)

If your property is a rental property, it may be over-valued. This may be because the rental income is lower than it should be and/or the expenses are higher than they should be. 

Concerning rental income, a primary factor is your property’s occupancy rate. If it is below 90%, there may be reason for appeal.

If your expenses for this property, excluding mortgage payments, capital expenses and depreciation, exceed the income you are receiving, there may be reason for appeal.

Other questions which may apply are:

Are the rents you charge below what similar properties in your area charge?

Are there any other reasons why your property is not doing as well as might be expected?

If your answers to these questions lead you to believe that your property may be overvalued, please let us know. 

When replying, it is helpful to include an income and expense statement for the past three years along with your description of what factors might be used to justify a reduction in your property’s current valuation. 

We would welcome hearing from you.

If you have any questions after reading this document, please let us know. When contacting us, preferably by email, please indicate which property is of concern. Our email address is: support@taxdetective.com Thank you.

-TaxDetective

Last updated: 5/5/2020