LandlordBC is collaborating with Burgess Cawley Sullivan & Associates Ltd. to undertake a “mass appeal” of 2019 assessed values for multi-unit rental buildings…learn more below!
Burgess Cawley Sullivan & Associates Ltd. (BCS) and LandlordBC are collaborating to undertake a “mass appeal” of the 2019 assessed values BC Assessment has assigned to multi-unit rental buildings. BCS Principal and Property Tax Agent Paul Sullivan will be filing appeals on large portfolios of apartment building assessments across British Columbia. An analysis by Mr. Sullivan has concluded that 2019 assessed values should have gone down in most instances.
In a conversation with Mr. Sullivan he offered the following commentary – “BC Assessment may have historically had the ability to assess apartment buildings at current market rent, however legislative measures recently imposed changed the rent control formula from inflation + 2%, to inflation-only, thereby reducing the ability to increase rents. This has negatively impacted values and BC Assessment failed to acknowledge this market change on the 2019 assessment roll. To further complicate matters, BC Assessment adopted capitalization rates from an earlier time in the market where purchasers were buying at low cap rates for the opportunity to achieve upside in their investments, most often associated with improvements to properties.”
LandlordBC concurs with Mr. Sullivan’s conclusions and we are of the view that the 2019 values determined by BC Assessment warrant re-consideration by BC Assessment, and that appealing your assessment may very well have merit.
Burgess Cawley Sullivan (BCS) is a well-respected firm in the market and having them review your assessment for appeal may be prudent given the level of appeals anticipated this year. Mr Sullivan advises that the greater number of appeals that are filed the better the odds of having the issues recognized. Furthermore, he indicated that the cost of running appeals will be less per property dependent on the number of participants.
LandlordBC encourages owners and managers of multi-unit rental buildings to seriously consider appealing your assessment with Mr. Sullivan’s assistance, so that we may send a strong message to BC Assessment that our industry is unwilling to accept the basis they have applied to value our apartment buildings.
Fee Structure For Reviews/Appeals
BCS deems it critical to review an assessment prior to filing an appeal. The reason for this is to avoid any risk if the assessor has missed something on your property and to perform a reasonable amount of due diligence prior to filing an appeal on your behalf. A report will be provided to you indicating the detailed reasons for the appeal and the appeal will be filed by BCS prior to the Appeal Deadline of January 31, 2019.
There are three levels of review report available:
- $1,000 – Detailed review report including a full comparison of your income levels as compared to market levels and including a full cap rate analysis.*
- $500- Mini review report setting out comparisons of actual property performance to assessors inputs*
- No charge- A review of assessment to ensure no risk of appealing. If there is a subsequent reduction in the assessment as a result of the appeal contingency fees of 50% of tax savings will be payable.(contract to be provided)
*Once an appeal is filed additional fees on an hourly basis will be required and typically range up to $3,000 (less for smaller buildings). Alternatively, BCS clients can opt into contingency with written notice at 40%. (contract to be provided)
For BCS to complete their review they will require:
- Assessment notice
- Current rent roll
- 12-month income and expense statement
For more information please contact:
Read the fine print: LandordBC is simply facilitating the process for our industry and is not receiving any compensation for our involvement. While LandlordBC strongly encourages all rental owners and managers to seriously consider appealing your assessments, we are not a guarantor for the services BCS or Mr. Sullivan provide and assume no responsibility or liability for the outcome of the services they provide.