Residential or Commercial

[Ichbin58]

Question for appraisal folks. I am a researcher trying to determine how local appraisal offices (eg. Office of Property Assessor) assess single-family rental housing. This seems like a no-brainer. A single-family detatched house is appraised at the residential percentage in its jurisdiction. However, the growth of mega-institutional investors in many growth markets own 500+ single-family homes. They are either real estate investment trusts (SFR REITs) or private equity companies. Do any of you know of any jurisdictions that tax these type of single-family residences as "commercial" real estate? Thanks in advance!

 

[Terrel L. Shields]

Normally not. Each assessed as SFR and most use the cost approach vetted by mass appraisal methods. Inçome valuation is reserved for apartment valuation.

 

[Tom D]

single family properties & multi family properties in this big city are only taxed on value. they don't care what you have, or who has it. only care about the land & building value. any other way is probable to much time consuming for taxing purposes.

 

[Artemis Fowl]

Might want to talk to some assessors in your state. Every state is different with assessing. That said...
I am an assessor in Michigan. Unless H&BU indicates otherwise, I would value a residential property (rental or not) as a residential property. Ownership would not be a factor.
They are not likely being leased out as commercial nor classified in their portfolio as commercial properties.

"... investors in many growth markets own 500+ single-family homes" Kinda answer your own question here.

 

[glenn walker]

Question for appraisal folks. I am a researcher trying to determine how local appraisal offices (eg. Office of Property Assessor) assess single-family rental housing. This seems like a no-brainer. A single-family detatched house is appraised at the residential percentage in its jurisdiction. However, the growth of mega-institutional investors in many growth markets own 500+ single-family homes. They are either real estate investment trusts (SFR REITs) or private equity companies. Do any of you know of any jurisdictions that tax these type of single-family residences as "commercial" real estate? Thanks in advance!

No the properties use and zoning controls how a property is assessed-- NOT who it's owners are .
Few people other than small mom and pop landlords take title as individuals. Once you get bigger you always become a LLC or a Corporation, and the amount whether it's 20 or 10,000 homes does-nor change anything as far as property tax assessments are done.

 

[Fernando]

In one city, I get a letter about a fee I have to pay to rent control department asking if my property is a rental. If not, no fee to pay.
City doesn't know if our property is rented or not.
County might when homeowners get the homeowners tax exemption which is relatively small now. Yet in CA, all properties are limited to 2% increase or lower if property values go down.
Other states should envy CA's Prop 13.
Liberals try to overturn it or try to tear it down slowly so they can get additional revenues to spend. Thank you Prop 13.

 

[Terrel L. Shields]

Friday a friend told about his friend that throws work to him from time to time and that friend has sold out and moving to Lincoln NB - said it will cost him $200k more for a home there and monthly property taxes are about $700 on his new home. Wow... the same house would be about $250/month here, less homestead of about $350 credit.

 

[Fernando]

Mega-institutional investors are not as prevalent here. Don't understand why they're a threat in the market. Speculators help stabilize the market.
Heck, if they buy more, it will increase the home prices even more.

 

[Zoe]

Might want to talk to some assessors in your state. Every state is different with assessing. That said...
I am an assessor in Michigan. Unless H&BU indicates otherwise, I would value a residential property (rental or not) as a residential property. Ownership would not be a factor.
They are not likely being leased out as commercial nor classified in their portfolio as commercial properties.

"... investors in many growth markets own 500+ single-family homes" Kinda answer your own question here.

bingo original poster. Your asking wrong people. This man just told you your avenue.

 

[Zoe]

Question for appraisal folks. I am a researcher trying to determine how local appraisal offices (eg. Office of Property Assessor) assess single-family rental housing. This seems like a no-brainer. A single-family detatched house is appraised at the residential percentage in its jurisdiction. However, the growth of mega-institutional investors in many growth markets own 500+ single-family homes. They are either real estate investment trusts (SFR REITs) or private equity companies. Do any of you know of any jurisdictions that tax these type of single-family residences as "commercial" real estate? Thanks in advance!

BTW, who do you work for? I am just curious.