Lincoln landlord sees property values skyrocket, pricing tenants out of homes
After 35 years of being a landlord Scott Hoffman has learned a thing or two about property valuations.
With home prices increasing, it’s been no surprise Hoffman has seen his property valuations also rising.
This year some of his valuations nearly doubled from last year, dramatically increasing his property taxes.
“My properties a total of about 16 of them went up about $432,000 and equating that with the new property mil tax levy you’re looking at an additional $8,000 I’m going to have to come up with,” Hoffman said.
The new valuations would leave Hoffman no choice but to raise his rents over $100 a month.
Increasing rates have already forced some tenants out and has left Hoffman with no choice but to sell and even that is proving hard.
One of his homes on North 46th Street was valued at $77,000 last year, this year it’s almost doubled to $145,000.
Selling the home for what the county assessor has it valued at is no easy feat.
“We can’t even get an offer and this is where the county assessor has set my evaluation, in fact we set it like $3,000 below what their new assessed value is and we can’t even get an offer.”
According to the county assessor, the assessed value of a property is based on recent sales of other properties that have similar characteristics to yours.
The three homes being compared to Hoffman’s are all remodeled and have central air– things that Hoffman’s does not have.
Even appealing with the county assessor hasn’t changed Hoffman home valuations.
The extra $8,000 in property taxes still has to be paid leaving Hoffman with diminishing profits and nearly forcing him out of business all together.
“I’m beginning to understand how farmers feel because it feels like we’re in the same category. We’re supporting the schools, we’re making sure these property taxes get paid and then we’re supposed to put people in homes and barely charge them any rent. This isn’t going to work. There’s two different things that are pulling apart here.”
Channel 8 Eyewitness News did reach out to the county assessor for comment.
They told us finalized valuations come out at the end of next month and you can appeal, but that does not guarantee any changes will be made.
If you want to schedule a hearing you must do so with the county clerk between June 1 and June 30th.
