North Texas renters feel sting of property appraisal hike
NORTH TEXAS (CBSNewsTexas) - Property owners across North Texas are planning to protest their appraisals after another year of skyrocketing values, but it's not just homeowners feeling the pinch.
The increases will likely impact renters too.
"With the increasing costs, we've had to increase rent on a regular basis," said Sophie Tel Diaz, who owns rental properties in North Richland Hills, Colleyville and Grapevine.
She's had to raise the rent by about 10% at all of them because of the amount appraised values have increased in recent years, which in turn has increased property taxes.
"We are trying to as best as possible, whenever tenants stay in the homes, to keep the rents as low as possible to help that tenant too," Tel Diaz said. "You do not have any tax break or any tax ceiling, so what happens is the bill keeps going up every year."
Most homeowners are protected by a 10% appraisal cap, and there are also exemptions for disabled Texans, senior citizens, and veterans with disabilities.
Second homes and investment properties aren't eligible for any exemptions or caps.
"There's a trickle-down effect," said real estate developer Nick Good. "Ultimately, we've got to find a way to either pass that on to renters, or something is going to give."
From last year to now, he has seen an almost 41% increase in the tax value of the rental communities he builds in Denton County.
"Landlords and investors are going to have to raise the rent to offset those property taxes, or homes and developments, they either start to go into disrepair," Good said. "Maybe they skip out on maintenance items, and then you see homes and neighborhoods go in a direction that's not for the better."
Good is lobbying for systemic change, but in the meantime, he plans to protest all his appraisals in the hopes of saving both his company and his renters money.
Property owners have until May 15 to file a protest with their appraisal district. The deadline has been extended to the end of the month in Tarrant County because of problems with the website.