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  • 1.  Property Taxes

    Posted 03-04-2021 10:39 AM
    Has anyone had success in lowering tax bills for new lease-up facilities?

    I have been successful in fighting property taxes at stabilized facilities by using a comparative spreadsheet of all similar properties.  My newest hurdle is succesfully lowering new construction taxes.  Although we have no income and can show a negative P&L, the county seems to assess all new construction the same as other stabilized Class A deals.

    I hope everyone is making a comparative spreadsheet to fight their property taxes annually or using a professional tax service!

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    J.D. Blacklock
    Blacklock Storage, LLC
    Fort Worth TX
    (254) 717-0229 (cell)
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  • 2.  RE: Property Taxes

    Posted 03-08-2021 10:43 AM
    Yes, although I had to give P and L reports and occupancy my county accepted the lower occupancy numbers to reduce the taxes. Although I am in a small town outside of Austin they wanted to use comps from Austin.

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    Jeanne Dube
    Solid Ground Storage
    Elgin TX
    (512) 281-5779
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  • 3.  RE: Property Taxes

    Posted 03-18-2021 09:37 AM
    JD, are you using a property tax advisory service to fight your property taxes or are you doing yourself?  If you are using someone, who?

    John McAfee 214-923-0070
    www.TheStoragePlace.org/locations

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    John McAFee
    The Storage Place
    Dallas TX
    (406) 531-1330
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  • 4.  RE: Property Taxes

    Posted 09-27-2021 03:43 PM
    John - did you find assistance for your tax appeals for 2021?  I would be happy to visit with you about our services and processes if you are interested in exploring new options for 2022.  I've been a vendor member of TSSA for 15 years and have provided property tax appeal services for 30 years.  I protest about 100 self storage locations throughout Texas every year and would be happy to help you as well.

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    Mike Eckhoff
    President
    Assessment Advisors
    Spring TX
    (281) 466-1599
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  • 5.  RE: Property Taxes

    Posted 03-19-2021 09:31 AM
    We have had success in several counties with this.  We use a different model than we do for our stabilized facilities when putting our exhibit packets together to provide the appraisal district. 

    I think Bexar county is the only county that we ever had problems with.

    I just wish everyone, including the REITs would dispute their values with the appraisal districts.  When I pull comps and see facilities that have doubled or tripled in value and they still don't dispute the increase, it makes it harder for us to make a compelling argument.

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    Sarah Cole
    Exec Admin Asst/Audit Coordinator/Marketing
    Oakcrest Management, Inc.
    Burleson TX
    (817) 426-5996
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  • 6.  RE: Property Taxes

    Posted 09-27-2021 03:40 PM
    As a property tax consultant, I have seen the appraisal districts use many different strategies at assessing properties.  The majority of counties throughout Texas typically utilize the cost approach for valuing income producing properties for the first two years.  After two years it is assumed that ample time has been allowed to reach stabilized occupancy and the valuations are shifted to an income model.  Obviously, P&Ls don't support the cost basis upon completion of construction, but at the same time you can't produce a negative P&L and expect the county to value you at nothing as you still have land and you wouldn't have built facility in anticipation of it not being worth anything until stabilized.   In most counties (I usually have protests in about 60 counties in Texas each year), I have been successful presenting a cost approach along with a lease up discount.  

    I would be happy to visit with you in more detail if interested.

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    Mike Eckhoff
    President
    Assessment Advisors
    Spring TX
    (281) 466-1599
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