As a commercial landlord, there are several ways to set out how much you lease your premises to tenants for. Yet, at the end of the day, you and they need to consider all costs. One of those costs is property tax.
When property tax or any other cost of owning and using a building rises, someone has to cover the extra. Typically the landlord passes it on to the tenants in some form. Hence as a landlord, you need to ensure that all the bills the property incurs are no more than they should be.
What should I do if the bill is too high?
You would ring the service provider if your water or electricity bill were unusually high. If your property tax bill is more than you think is fair, you should contact your local council to contest it.
They may try to justify it, but that does not mean they are right. It could be that they have made a simple mistake, such as miscalculating your square footage. Or they could be overvaluing the area you are in. Either way, you need to look at getting it rectified.
Times have been hard for many businesses lately, and no business owner can afford to throw money away. If you allow the authorities to overcharge you on property tax, you reduce the pool of tenants who will be able to meet the total cost of leasing your premises. If you cannot fill your units, you will struggle to pay the property loans you took out or turn a profit.
If you believe your recent commercial property tax bill is exaggerated, seek legal help to determine how you can appeal it.