MPAC wants to speak with my friend

[Neil1]

Hello,
My friend's lawyer has contacted him as Mpac contacted his lawyer (just to get his phone number as they did not have it).
They want to ask my friend few basic question about a 10-plex he purchased last year.
My friend has no problem providing Mpac with the information and will obviously do that.
Just wanted to ask do we, as investors, benefit from MPAC high value or low value of our property?
If it is high maybe easier to sell for more in the future(?)
But if their value is low - maybe better as property tax will be lower.
What do you think is the best way to update Mpac on the property?
For example - if he worked hard and put $100,000 on a new roof and significant apartment upgrades etc,
should he present all that to Mpac? Or will it only negatively affect him if as a result Mpac will think wow the property's value is higher and his Taxes will now go up as a result of all his hard work improving the building?
Same question regarding vacancy - does Mpac give it higher value if vacancy is zero Vs. say 10%?
Thanks,
Neil

 

[Seeley]

From my perspective the lower the MPAC assessment the better as far as paying taxes and my bottom line is concerned. I have never known MPAC to assess based on much more than market sales so it is difficult to say what they are actually looking for. I personally would keep the information to them at a minimum but it is doubtful they are seeking very much info.

I don't know anyone that actually pays any attention to MPAC's property values so high or low should be irrelevant.

 

[Neil1]

Thanks Seeley!

 

[3canctheayr]

Rule of thumb:

Present your property in the worst possible way to an MPAC appraiser & in the best possible way to a bank appraiser.

 

[drew]

Neil1, do you know how things worked out for your friend?