Residential or Commercial

[Zoe]

The IRS gets their share on multi property owners. However, you might push something to local tax assessors and politicians. Not sure who you work for. Ask your boss. LOL

 

[Zoe]

Here you go: @Tiffany Gibbons ...............She knows. PM her.

 

[sputnam]

Is the appraiser appraising the value of the business that owns multiple residential properties? Or, is the appraiser appraising indvidual residential properties? One way, it's not even a real property appraisal. It's the appraisal of a business that has real property assets. The other way, it's an appraisal of a residential property.

 

[Zoe]

Am I concerned about foreign interest in group property owners on single family residential?

Yes.

 

[Ichbin58]

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

I'm a university professor researching institutional investors and their impacts on communities. In my region, some folks want to tax single-family investors who own X number of properties (it's hard to define the X) as commercial enterprises--like short-term rental owners. Keep in mind, in places like Atlanta, Tampa, Charlotte, Nashville, and other growing southern/sunbelt communities, these companies own huge portfolios of homes. In some neighborhoods, they own up to 50% of all homes. In such communities, calls for regulation are growing. One of the many "regulations" talked about is taxing such owners as commercial (thousands of property tax bills are sent to one address).

 

[Tiffany Gibbons]

Here you go: @Tiffany Gibbons ...............She knows. PM her.

In Tennessee, commercial properties are assessed at 40% rate, while farm and single family homes (even if rented) are assessed at 25% rate. It doesn't matter who owns it. Some of these REITS and big rental companies like Progess Residential in Nashville own hundreds of homes, but they also sell them to individuals sometimes (if the profit is more than the anticipated rental income). The Assessors in Tennessee have to follow the Tennessee Code Annotated governing assessment.

 

[Ichbin58]

Is the appraiser appraising the value of the business that owns multiple residential properties? Or, is the appraiser appraising indvidual residential properties? One way, it's not even a real property appraisal. It's the appraisal of a business that has real property assets. The other way, it's an appraisal of a residential property.

The house, not the publicly-traded corporation located 4,000 miles away.

 

[Ichbin58]

In Tennessee, commercial properties are assessed at 40% rate, while farm and single family homes (even if rented) are assessed at 25% rate. It doesn't matter who owns it. Some of these REITS and big rental companies like Progess Residential in Nashville own hundreds of homes, but they also sell them to individuals sometimes (if the profit is more than the anticipated rental income). The Assessors in Tennessee have to follow the Tennessee Code Annotated governing assessment.

Thank you! That's what I thought, but recently there has been some talk about this issue...

 

[Tiffany Gibbons]

Go to the IAAO website. There are many articles on this topic with different states input.

 

[Fernando]

Voters can pass ballots they want. There's a reason why big corporations buying homes in the area.
In SF, we have rent control affecting housing. There are consequences when market is interfered and less investors wanting to buy thus lower prices on multiunit buildings.
I personally never want to buy properties in SF even commercial as politicians have put additional taxes/fees in their social policy agenda.
As an investor, I feel I'm benefitting society in providing rentals. If communities have less friendly policies, it usually gets worse and I avoid investing there.