Tuesday, April 29, 2008

Property Taxes (11/1/2007)

Property Tax time is here. If you do not have your taxes escrowed you should be receiving and paying your tax bills now. Please make sure you pay on time to avoid penalties. You get to deduct the expense in the year you pay, so pay by December 31 to claim the expense in the 2007 tax year.

About 15% of our clients took advantage of the service by NTPTS to review and contest their tax valuation. Some of the reviews reflected an accurate valuation so it did not make sense to contest. The average client savings of those who used the service was just under $200.00 with an average valuation of around $140,000. This may not seem like much, especially after paying NTPTS for the services but you need to look a little deeper to fully understand the benefit.

Your initial adjustment from 2007 should carry into future years. Resetting your valuation at a lower level should continue to benefit each year by a similar amount but you do not have to pay NTPTS for future years. $200.00 savings each year is like getting a 10% reduction in your management fees and over a 10-15 year time frame most clients hold their investments it adds up to $2,000-$3,000. This is a fine return for the average fee paid to NTPTS of $150.00.

If you own properties in Texas look for important information we will be sending you on special savings on your property insurance. We have worked to make Prime Properties a certified property managment company in the state of Texas which allows you to receive special discounts and higher coverage on your insurance through specific carriers. A professionally managed investment property is a lower risk to insure and we have worked to get certain insurance carriers to recognize this and pass the savings to you!

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