paying property taxes with no mortgage
1,796Hi All,
I have few properties with no mortgage and looking for easy ways to pay property taxes. When I had mortgages, the payments went through the escrow account now I am paying multiple charges to every jurisdiction which is a headache. Is there a way to automate these payments?
Thank you!
-Boris
1 answer(s)
#1 Awarded – Best AnswerGrant Rothberg
About 5 years ago
Boris,
Tax Code Section 31.072 allows a collector for a taxing unit to enter into a contract with a property owner under which the property owner deposits money in an escrow account maintained by the collector to provide for the payment of property taxes collected by the collector on any property the person owns. There are a number of other details in the law, so you'll want to take a look at the Code (included below).
If you decide to move forward with escrow, you'll also want to contact the tax assessor for each county in which you own property to determine how they handle situations like yours. I'd encourage you to consider the downside to escrowing before setting them up - you'd be losing any potential investment power of your money for an entire year instead of just paying your bill as it becomes due.
One last thought: if these properties are investments, you may want to consider leveraging some of your equity to purchase additional rentals. Though complete ownership brings peace of mind and a sense of security, your return on cash is typically much lower than if you leveraged through the house of home equity loans or even considered selling what you have and purchasing several more financed properties by using your proceeds as your down payments.
Grant Rothberg
Rothberg Realty Group w/Keller Williams Houston Preferred
832-657-6420
grant@rothbergrealtygroup.com
Tax Code Section 31.072 allows a collector for a taxing unit to enter into a contract with a property owner under which the property owner deposits money in an escrow account maintained by the collector to provide for the payment of property taxes collected by the collector on any property the person owns. There are a number of other details in the law, so you'll want to take a look at the Code (included below).
If you decide to move forward with escrow, you'll also want to contact the tax assessor for each county in which you own property to determine how they handle situations like yours. I'd encourage you to consider the downside to escrowing before setting them up - you'd be losing any potential investment power of your money for an entire year instead of just paying your bill as it becomes due.
One last thought: if these properties are investments, you may want to consider leveraging some of your equity to purchase additional rentals. Though complete ownership brings peace of mind and a sense of security, your return on cash is typically much lower than if you leveraged through the house of home equity loans or even considered selling what you have and purchasing several more financed properties by using your proceeds as your down payments.
Grant Rothberg
Rothberg Realty Group w/Keller Williams Houston Preferred
832-657-6420
grant@rothbergrealtygroup.com
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