STR Cost Segregation Proposals: What to Compare
Use a consistent proposal checklist to compare STR cost segregation fees, study methods, furnishing treatment, deliverables, and follow-up support.
Normalize the inputs first
Two proposals can show very different benefits because they started with different information. Send both providers the same property facts and distinguish verified costs from preliminary estimates. Ask each to state what was excluded. A furnished purchase, later remodel, and separate guest-equipment budget should not be rolled together without explanation.
Separate the study fee from implementation fees
Request a written description of the study deliverables, payment terms, revision policy, and assumptions about record quality. Confirm whether return preparation, accounting-method work, or amended filings are separate services. A low initial quote can be difficult to compare with a broader engagement when the included work is unclear.
Ask how the physical property is documented
A provider should be able to explain why its inspection and documentation approach fits your property. Identify who collects photographs, how measurements or plans are used, and what happens when a component cannot be observed. The comparison should focus on the evidence supporting the conclusions rather than a label such as remote or engineering-based.
Require a reconciliation and usable deliverables
Request a component-level schedule that connects to the analyzed basis, identifies assumptions, and can be used by the return preparer. Ask how the report addresses furniture already carried on the ledger and work completed in different years. Confirm whether the engagement includes a call with your CPA and who handles questions after delivery.
Clarify support and timing
Ask what audit support includes, who provides it, and whether additional charges apply. Obtain an expected timeline tied to receipt of complete records. If your filing deadline comes first, discuss options with the tax preparer before selecting a provider solely because of a fast turnaround promise.
Make a written decision
Use a simple comparison sheet with columns for fee, evidence, basis reconciliation, STR experience, CPA handoff, revisions, and support. Note unanswered questions and resolve them before signing. Stratum’s study standards and discovery process provide a starting point for this comparison; the final scope should still reflect your own property.