Student Housing Business is the voice of the student housing industry.
Issue link: https://studenthousingbusiness.epubxp.com/i/616872
SMARTER OPERATIONS STUDENT HOUSING BUSINESS .COM NOVEMBER/DECEMBER 2015 101 Look for Errors and Opportunities When reviewing property data, one com- mon error to look for is if the assessor used conventional multifamily properties instead of student housing properties to determine the property's market value. "Assessors commonly apply conventional apartment data when assessing student hous- ing values, but there are huge differences between the two asset types," Duckett says. "Make sure the assessment makes sense based on an equal-and-uniform analysis." Davila agrees. "Not only does the property need to be appraised at its market value, but most jurisdictions have a statute that says a property should also be appraised equally and uniformly when compared to other compa- rable properties," he says. "Sometimes owners can get relief from this equal-and-uniform dis- cussion if their property is valued higher than comparable properties, or if they aren't using the right type of properties in the comparison." Assessors who are unfamiliar with student housing also often mistakenly incorporate the property's business operation value into its real estate value, which can lead to a higher property value and, in turn, higher property taxes. "Student housing business operation is inter- twined with its real estate because you're pro- viding a lot of amenities to the students that are more business-oriented amenities," Gorski says. "Assessors often don't recognize that. Their job is to value the real estate and the real estate only, not to value the business operation. Sometimes they see the transaction price and assume it's the value placed on the real estate. There's an opportunity for a real estate appeal to lower the value." And, recently, owners are fnding success with appeals for older properties that are los- ing students to newer, fashier properties going up next door. "Older projects with lesser amenities are the ones that are having a greater challenge of maintaining good income levels, and therefore, are prime for potential real estate appeals," Gorski says. "The assessment offces for stabi- lized projects are assessing these values based upon income potential. And, if that income potential is diminished because of increased vacancy, then there is a good opportunity for an appeal." Understand How, and When, to Appeal With property tax appeals offering owners many opportunities to lower their property tax bills, it behooves owners to understand how, and when, they can appeal in their jurisdiction. "Every jurisdiction has a process where you can dispute the value and fle a formal appeal to the assessor," Gorski says. "But, there's a specifc deadline for every jurisdiction in the United States that you have to fle by in order to pursue it. Then, you have the opportunity to look at how the assessor came to their value conclusion, and you have the opportunity to package up your evidence to support your own value conclusion." No matter the jurisdiction, the general rule is "the sooner, the better" when it comes to fling appeals. "You've got to be fairly close behind the assessment," McCune says. "It differs juris- diction by jurisdiction what you can do after the fact and how far after the fact. But own- ers should know that every assessment that's put out there is appealable. They just need an understanding of what that appeal deadline is and how quickly they have to appeal." McCune also advises owners to actively review every assessment and reassessment of the property for a potential appeal. "Oftentimes owners think their property is worth a certain amount, and, if they receive an assessment that's lower than that number, they decide not to pursue an appeal," McCune says. "Every assessment needs to be actively reviewed. Even when it's not a reassessment year, take a look because there are always other potential avenues of appeal to drive and pro- duce additional tax savings." SHB Meeting the Unique Challenges of the Student Housing Industry Ryan's Property Tax practice, the largest in North America, combines its local market knowledge with a comprehensive range of services to help efectively manage and control property tax requirements and liabilities. With more than 750 property tax professionals across 35 locations, Ryan provides local market expertise and in-depth knowledge of the student housing industry. Our specialized representation provides owners and investors in this niche market the best strategies for reduction and maintaining their ad valorem taxes. Ryan Representation: * As reported by Student Housing Business magazine Ryan represents eleven of the Top 25 Owners of Student Housing* Comprehensive Services: • Annual Assessment Reviews • AtlasTax™ Software • Audit Support • Business Personal Property Return Preparation • Litigation and Trial Support • Management Reports • Pre-Acquisition Reports • Property Tax Budgets • Real and Personal Property Tax Appeal Services • Tax Bill Processing © 2015 Ryan, LLC. All rights reserved. 1.855.RYAN.TAX | ryan.com beds 150k + in value $ 5b + properties 275 + college markets 125 +