What are taxes and fees?
Rental properties are subject to a number of taxes and fees, such as property taxes, coverage tax, waste, electricity and water charges, etc. As a landlord, you are obliged to adjust the rent if there is a decrease in taxes and fees, but you also have the option to adjust the rent if there is an increase.
Changes in these taxes and fees are usually enacted in the fall to take effect on January 1. Tenants are typically notified during the spring, while the increase or decrease in rent often applies from January 1. Tenants must be given three months' notice and can be charged retroactively if the landlord notifies the change by May 31.
How do I use Proper to settle taxes and fees?
Notification and change of taxes and fees is not part of Proper's service, but you can easily use Proper's platform to handle changes in taxes and fees.
We recommend that you first register the changes on the platform. This includes:
1. Schedule the rent level change in the Rent tab from the month you want the rent to change.
2. If you want to charge for the change in taxes retroactively, add a one-time charge to the bill, where the amount is calculated based on how many months to charge retroactively. If tenants need to adjust their rent downwards, you can use the Reduce bill function.
3. The same applies to deposit and prepaid rent adjustments. Here, a one-time charge with the category Deposit or Prepaid rent is added to the adjustment amount for taxes and fees multiplied by the number of months paid deposit and prepaid rent. See example below.
4. Once you have made the changes on the platform, the tenants must be notified. You can notify tenants individually through Proper Talk. First find the tenant and select as recipient. You can then send the tenants an email and attach the notification letter you have created as a PDF.
If you have any further questions about how to use Proper to manage the tax process, you are welcome to contact our support team via support@helloproper.com.
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