Hey everybody, this is Aaron with Access Property Management!
I wanted to talk today about the homestead property tax exemption, formally known as the “principal residence exemption” or PRE. In Michigan, this is a reduction of 18 mills each year on your property taxes for the home that you live in as your principal residence.
Many times when a first time landlord moves out of the home they were living in and decide to lease it they don’t realize that their property taxes are going up by those 18 mills and it’s often missed when they are considering the cost-benefit of doing the rental.
So if you are going to be doing a rental on a property that you’ve been living in make sure you get on the county or city website and get that millage data. When this homestead exemption expires it can increase your annual property taxes anywhere from 30%-50% depending on the municipality and your current millage rates.
If you have any other questions about this please contact us at 616-301-9450 in Grand Rapids or 269-220-6033 in Kalamazoo. You can always reach us on our website at www.AccessPmGroup.com