MORE than 100 property owners in the City of Kalamunda who claimed the rental value of their homes were overvalued by the State Government have successfully had their rates reduced.
City chief executive Rhonda Hardy said council rates were partly based on assessments by Landgate on the potential rental value of a property.
“Approximately 120 property owners were successful in having their gross rental valuation (GRV) revised resulting in a lower rates charge,” she said.
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READ NOWDue to the misalignment of the valuations provided by Landgate, which were applied by the City for its 2017/18 rates generation, the City will receive just under $100,000 less in rates revenue.
A Landgate spokeswoman said in 2017/18 there were 353 objections to the GRV set by the Valuer General – an increase on the previous year’s 217 objections.
“As 2017/18 was the year that the new metro general valuation came into force, it would be expected to receive more objections than we did the previous year,” she said.
The spokeswoman said all properties within local government districts were assessed on the same date every three years.
“Rental evidence is collected at that date and used to determine the fair rental value for each property,” she said.
“Rental values are influenced by factors like location, the age of a building, building materials, size, the number of car shelters and if there is a pool.
“By analysing property rents against these attributes and characteristics it is possible to assess a valuation for all properties – whether they are rented or not.”
Landowners can appeal the valuation if an objection is formally lodged within 60 days of a rates notice being issued.
They must show that the rental value of their property is significantly higher than similar properties within the local area by providing rental evidence at or around the date of valuation.
The current GRV for the Perth metropolitan area was valued at August 1, 2015 and came into effect on July 1, 2017.
This week, new valuations were assessed for the Perth metropolitan area by the Valuer General that will come into effect in 2020-21.
The GRV figures are used by local councils, the Department of Fire and Emergency Services and the Water Corporation to determine urban property rates and service charges.