It is common knowledge that real estate property tax fluctuates. Homes are remodeled, property values are reassessed on a regular basis, and people are on the constant hunt for a new home.
However, when commercial property taxes fluctuate based on the market, things can seem a little more complex. Many commercial businesses remain in place for years, so why would there be a need for constantly rising and falling tax on these properties.
The Hegwood Group specializes in commercial property tax, and we know that these are valid concerns. Here are the reasons for fluctuations and how you can be ahead of the curve and make moves to save money.
Why Does Commercial Property Tax Fluctuate?
The main reason for commercial property tax fluctuation is how the different regions in the area approach assessments throughout market changes.
Property taxes are able to fluctuate for several reasons that include:
- Real estate improvements
- Local municipality needs
- How often people actually protest their property taxes.
What Can You Do to Protect Your Wallet?
Tax fluctuations are very common, but when not protested, can become very expensive. As a commercial property owner, it is always a good idea to be prepared for fluctuations and knowing how you can potentially avoid high property tax bills.
Plan Ahead With Improvements
Increasing your property’s value is always a great step to take when trying to protect yourself from market fluctuation. If you are a business owner that rents out commercial property, your property will be much more appealing to renters if the property value is higher than average.
Things to take into consideration when improving your commercial property could include:
- Ceiling height
- Interior improvements
- Roof replacement
Don’t Be Afraid to Appeal Your Property Taxes
When the economy begins to fluctuate, commercial property values and assessments are the first properties to experience a property tax change. By appealing your property tax assessment, you can guarantee that you are not being over-assessed and paying much more in taxes than you should be.
Appealing a property tax assessment can be time consuming and overly onerous. Hiring a commercial property tax consultant can be a wise choice.
Understand Your Commercial Leases
If you are a commercial property owner and lease all or part of your property to tenants, it may be beneficial to review your lease with regards to your tenants potential sharing of the property taxes and other building expenses.
Keep in mind that your property value can change based on how it is intended to be used.
The Hegwood Group Keeps You Informed On Commercial Property Tax Issues
If you are tired of overpaying on your commercial property tax, turn to a property tax consultant for some professional help. At The Hegwood Group, we make sure to help our clients out with any of their commercial property tax needs. Contact us today to find out more about our services.