Part 3: Taxes, Insurance & Regulatory Surprises – What Billings Owners Should Prepare For
Think you’ve got your property expenses figured out? Think again.
As a rental property owner in Billings, you expect some fluctuations — maybe an appliance repair here or a slow month there. But the most damaging expenses? They often don’t come from your property at all. They come from your tax bill, your insurance renewal, and the fine print of city regulations.
In this post, we’re digging into the less predictable but hugely impactful costs of owning property — and why staying ahead of them can mean the difference between steady returns and serious financial strain.
A Story You Don’t Want to Repeat
Meet Lisa, a local landlord who owned a fourplex in Lockwood. She self-managed for years, doing a great job overall. She kept the units filled, handled maintenance, and managed tenant relationships. But in 2023, everything changed.
- Her property taxes jumped $1,900 after a county reassessment.
- Her insurance premium increased 27%, and her deductible doubled.
- She received a $250 non-compliance notice from the city for a missing backflow test.
- She had no idea her lease template was outdated, missing several compliance disclosures required by Montana law.
In 60 days, she lost over $4,000 in unexpected expenses — and worse, she realized she had no system in place to catch any of it before it happened.
The 3 Cost Categories Owners Often Miss
These aren’t line items in your rent roll or maintenance report — but they can blow up your budget fast.
1. Montana’s Changing Property Tax Landscape
Over the past several years, Montana’s property tax structure has shifted significantly — and Billings property owners are feeling the impact.
Did you know?
- Property values in Yellowstone County have surged, especially in multi-unit buildings.
- Many investment properties were reclassified or reassessed at higher rates in 2023–2024.
- In some cases, taxes increased 15–30% in a single year — without much warning.
Unlike a broken water heater, these increases don’t come with a noisy alarm. They hit your mailbox. And if you’re not ready, they cut deep into your cash flow.
Premier’s Approach: We monitor reappraisals and notify owners of significant shifts. We help you budget for changes and refer tax appeal resources when appropriate.
2. Insurance Premiums Are Skyrocketing — Quietly
If your rental property hasn’t had a claim in years, it’s easy to assume your insurance rates will stay steady. Unfortunately, that’s no longer the case — especially in Montana.
What we’re seeing:
- Annual premium increases of 10–40%
- Higher deductibles — sometimes jumping from $1,000 to $5,000
- Exclusions on hail, wind, or water damage in certain ZIP codes
- Requirements for updated safety features (GFCIs, CO detectors, handrails, etc.)
Example: One of our clients came to us after being dropped by their insurance company for not having proof of smoke detector replacements. The policy lapse triggered a forced coverage by their lender — at triple the normal rate.
Premier’s Approach: We make sure owners stay on top of inspection timelines, lease liability clauses, and maintenance documentation — which helps with claim approvals and premium negotiations.
3. Local Regulations Can Cost You — Even if You Don’t Know About Them
Even though Montana is generally landlord-friendly, the City of Billings and surrounding jurisdictions have increased local oversight in recent years. The result? More forms, more inspections, more compliance — and more costs.
Examples from the past year:
- Required backflow prevention testing for properties with irrigation systems
- Local rental registration discussions and safety inspection mandates
- Increased enforcement of lease documentation standards
- New disclosure language for mold, asbestos, and lead paint in older units
The challenge? These updates often arrive by mail — or not at all. If you’re not actively following city council decisions and state legislature updates, you’re probably already behind.
Premier’s Approach: We stay connected to compliance updates, partner with legal counsel, and proactively review lease language, property status, and inspection dates — so you don’t get caught off guard.
Why These Costs Are So Dangerous
They’re not dramatic like a burst pipe or a tenant skipping town, but these back-end costs can be far more damaging — because they tend to hit all at once, and you can’t defer them.
They’re:
- Easy to overlook
- Hard to predict
- Difficult to appeal or fix retroactively
And once they land in your inbox, the clock starts ticking.
Real Scenarios We See All the Time:
A Surprise Tax Assessment
The county reassesses your property’s value, and suddenly your taxes are $2,400 higher than last year. You have 30 days to appeal — but you didn’t see the notice until Day 29, and now you’re scrambling to pull comps and fill out a form you’ve never seen before. Most owners don’t appeal. They just pay it — and then pay it again the next year.
Insurance Fine Print You Never Read
Your insurance auto-renewed, but it now excludes hail coverage — and you don’t find out until after a summer storm takes out part of your roof. Now you’re out-of-pocket $6,000 because of a coverage gap you didn’t know existed.
City-Mandated Compliance That Wasn’t on Your Radar
The City of Billings adds a requirement for annual backflow testing on rental properties with irrigation. The notice was mailed in March, but you didn’t catch it. In August, you receive a $200 noncompliance fine and now have to schedule an emergency test — usually at a premium rate.
Outdated Lease Language That Opens You to Liability
Montana updates its rental disclosure laws, requiring specific language about mold, lead-based paint, or notice periods. Your lease — pulled from an online template in 2019 — doesn’t include any of it. A tenant challenge or court dispute could put you at risk of fines or worse: invalidation of your lease terms.
And This Is Where Most Self-Managing Owners Get Blindsided
It’s not because they’re irresponsible or careless — it’s because they’re already doing everything else.
- They’re responding to maintenance issues
- Coordinating vendors
- Handling rent collection and tenant communication
- Balancing a full-time job or other investments
That means important things fall through the cracks:
They don’t read or understand their tax reassessment notices
They let insurance policies auto-renew without reading the fine print
They assume their lease template is “good enough”
They forget about city inspection dates or documentation requirements
This isn’t mismanagement — this is information overload.
And without a team or system to back you up, you’re always one envelope, email, or ordinance away from a costly surprise.
How Premier Protects Your Investment
When you work with Premier, we’re not just putting a Band-Aid on property issues — we’re building a protective shield around your investment.
Here’s what that looks like in action:
✅We review your lease annually
Every year, we audit your lease language to ensure it reflects the latest legal standards in Montana — protecting you from legal gaps and giving your tenants clear expectations.
✅We simplify the complexity
We filter the noise and highlight what matters — with clear reports, priority alerts, and easy-to-understand financial overviews.
The Result?
You have:
✅ A reserve plan in place
✅Updated documentation for all inspections and policies
✅Leases that comply with current Montana laws
✅Systems that protect your time, your asset, and your peace of mind
Because we believe your property should create wealth — not worry.
And at Premier, we don’t just manage it.
We future-proof it.
Ready to Protect Your Property from the Unexpected?
You didn’t invest in real estate to become an expert in tax law, insurance negotiations, or city ordinances. But if you’re self-managing, you’re forced to wear every hat — and the cost of missing something is rising every year.
When you partner with Premier, you’re not just hiring a manager — you’re gaining a full-time advocate who works ahead of the curve so you don’t fall behind. We’ve helped owners:
- Successfully appeal tax increases after reassessments
- Reduce insurance premiums by documenting upgrades
- Avoid non-compliance fines by preparing properties ahead of inspection season
- Get ahead of city code changes before enforcement letters arrive
And we don’t just solve problems — we prevent them. That’s the difference.
You get to:
- Spend less time scrambling and more time scaling
- Sleep better knowing your property is legally protected
- Stop reacting — and start making strategic investment decisions
📞 Call us at (406) 540-8040
💬 Schedule a no-pressure consultation here!
📍 Serving owners who expect more — in Billings, Lockwood, and surrounding communities
Coming Up Next:
Part 4: Time, Stress, and Missed Opportunities – The Costs You Can’t See on a Ledger
Hook:
You can’t deduct burnout on your taxes. But managing tenants, coordinating contractors, and chasing rent? That’s costing you more than you realize.
Summary:
This post focuses on the intangible (but very real) costs of DIY management: time loss, emotional drain, and missed investment opportunities. It shows how working with Premier not only protects your property — it gives you your life back.
Key Points:
- The “invisible” costs of self-management
- How time spent = money lost elsewhere
- Opportunity cost: what could you do with better systems?
- Why Billings owners choose Premier for peace of mind and profit