FINRA's BrokerCheck

Bill allows some homeowners to rent primary residence more than 14 days and still qualify for PRE

With services like Airbnb on the rise, property owners often rent their space when they’re away. But there’s more to renting than making extra cash – there are guidelines to consider.

On Nov. 28, 2017, the Michigan Court of Appeals published a case (Rentschler v. Township of Melrose), which argues the rental of a principal residence for more than 14 days should not disqualify a homeowner from claiming the principal residence exemption (PRE) from property taxes. Current guidelines for the Michigan Principal Resident Exemption program state “if an owner rents his property for more than 14 days a year, the property is not entitled to a principal residence exemption.”

If you do not claim the PRE exemption on your principal residence because your rental period exceeds 14 days, you can appeal to the December Board of Review by Dec. 12, 2017. Provided property owners meet the requirements for the PRE, they will no longer be denied the exemption. In addition, property owners may be able to request a review of the current and next three tax years,

To learn more, please contact your Rehmann advisor today.