The local tax assessors in DC, Maryland, and Virginia will surely raise taxes on expanded or otherwise enhanced buildings and land. The key to decision-making in this regard is to gauge the overall market value of the units against the higher tax liability. When the rental units command higher remittances, the tax burden can be absorbed, while the income can still increase. All of that, of course, depends on careful evaluation, planning, accounting, and reporting. For example, Edge renovated three older properties in Maryland because their HVAC systems were aging and in need of replacement. This was money well spent in terms of tenant retention, and its impact on taxes was modest and easily absorbed.