If you’ve been with your real estate tax service vendor for a while, switching vendors is likely not top of mind. However, relying on the status quo can sometimes lead to inefficiencies, increased costs, and missed opportunities for better service.

As property tax servicing requirements shift due to regulatory updates and advancements in technology, it’s worth taking the time to assess whether your vendor is still the best fit for your institution’s needs.

Here are some key signs that it might be time to explore other options.

1. Unsatisfactory Service

Customer service should be a priority, not an afterthought.

  • How quick is your vendor’s customer service?
  • Do they respond instantly or take days to get back to you?
  • Perhaps most importantly, are you being charged extra just to access basic service?

Delays can create compliance risks, borrower dissatisfaction, and increased operational burdens. Additionally, if you’re being charged extra just to access basic service levels—such as a dedicated account manager or timely tax updates—that’s a red flag.

What to look for in a vendor: Elevated support experience, a proactive approach to issue resolution, and clear service level agreements (SLAs).

2. Haven’t Evaluated your Options in Years

Are you getting borrower complaints related to tax monitoring and escrow processing? How often are there undetected delinquencies or fines pushed on to borrowers?

If your borrowers frequently complain about tax escrow processing delays, unexpected delinquencies, or misapplied payments, it could point to inefficiencies in your vendor’s system. Poor tax monitoring can result in unnecessary penalties or foreclosure risks, eroding borrower trust.

What to look for in a vendor: Accurate tax tracking, seamless escrow management, and borrower-friendly customer service.

3. Institution Needs Have Changed

Your internal team works closely with your tax service vendor—are they satisfied with the experience? If your staff is constantly fixing vendor mistakes, dealing with slow responses, or manually intervening in automated processes, it’s costing your institution time and money.

What to look for in a vendor: Intuitive platforms, transparent reporting, and strong client support.

4. Unhappy Borrowers

Audits are a fact of life in mortgage servicing and lending. Have you experienced audit issues due to inaccurate tax reporting, misapplied funds, or missing documentation? A vendor that cannot provide accurate and timely reporting puts your institution at regulatory risk.

What to look for in a vendor: Robust compliance measures, automated tracking of tax deadlines, and a clean track record of audit support.

5. Unhappy Internal Staff

Your organization has likely grown and evolved over the years—has your tax vendor kept up? A vendor that met your needs five years ago may not be equipped to handle your current volume, complexity, or regulatory requirements.

What to look for in a vendor: Scalability, customizable solutions, and expertise in the jurisdictions where you operate.

6. Audit Concerns

When was the last time you evaluated alternative vendors? It’s easy to stick with the same provider year after year, but the property tax servicing industry has evolved. Today’s top vendors leverage AI and automation to reduce errors, detect delinquencies faster, and streamline tax payment workflows.

What to look for in a vendor: The latest tax servicing technologies, flexible integrations with your existing systems, and a track record of continuous innovation.

7. Future M&A Activity

If your institution is planning or considering a merger or acquisition, ensuring a smooth transition is crucial. Your tax service provider must be able to scale and integrate seamlessly with new systems, teams, and processes. Some vendors struggle with handling M&A-related changes, leading to service disruptions and compliance issues.

What to look for in a vendor: Flexibility, integration capabilities, and experience managing tax servicing during M&A transitions.

Don’t Settle for Average

Your real estate tax service vendor should be a partner that supports your growth, not a hindrance that slows you down. If you recognize any of these warning signs, it may be time to explore alternative solutions.

Find out how LERETA is challenging the status quo of tax services. Contact us today to learn more about how we can help improve your tax servicing experience.

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