On what basis are the apartments assessed?

Apartment buildings fall under assessed value. In which, the assessor works with the local bodies like counties and municipalities to evaluate the property. Local taxing bodies use apartment appraisers in Los Angeles to reevaluate the properties that fall under their jurisdiction at regular intervals. This way they can set the value of the property for taxation purposes

In this article, we will talk about a few approaches used for assessing the apartments.

1- Income approach value:

Apartment buildings are income-generating properties. The income approach value is used to establish the apartment's assessed value. The income approach also looks at the apartment's rental and vacancy rates along with current interest rates and an investor's rate of ROI. In the end, the assessors interpret assessments based on the local market's condition.

2- Taxable value:

The Government taxing bodies prefer a taxable value approach to assess the properties. It is also important to note that the taxable amount is the percentage of property's assessed value without any exceptions like depreciation. The percentage varies widely and depends upon locality.

3- Actual physical assessments:

Using new technologies, the accessors or apartment appraisers in Los Angeles inspect the relationships between the market value and property's characteristics. The accessors may also prefer physical inspections to find the final taxation value.

Bottom line

Apart from these approaches, other value approaches include a common all-purpose approach and replacement-cost value approach. The assessor uses them to rectify the replacement cost of a property and the cost of materials and labor required to replace the property.

Connect with the United Appraisals Group to gain more information on the process.