All Forum Posts by: Tom A.

Expanding a bit on Michigan's property taxes, the difference between the Homestead and Non-Homestead rate is usually 18 mills. Properties are (supposed to be) assessed at 50% of market value,

So, a $100k house is assessed at $50K. A typical suburban homestead tax rate is about 35 mills, though they vary a lot. That means the non-owner-occupied rate would be 53 mills. The owner-occupant would pay $1750 while the investor would pay $2650, about 50% more.

I understand the attraction of the extra $50 every month but if he flakes out completely you're already almost 3 weeks into the month with no rent. By the time you conclude he's not going to be paying you any more money he'll have been staying free for a month, and then you have to go through the eviction process.

I have a tenant who had a similar issue. She started out paying on time but began to slip. Her issue (aside from poor money management, which I don't think I can fix for her) is that her income comes around the 12th of the month.

I adjusted her lease to make the rent due date be the 15th of the month. She first paid a half-month's rent to cover from the 1st the the 15th and then a full month's rent to cover from the 15th of this month until the 15th of next month. Every month from then on, the rent is due on the 15th.

The late fees were nice to have, but the constant wonder about what was going on, the phone calls, the potential for taking a larger than necessary loss weren't worth it for me. She didn't like being late either, so now landlord and tenant are both happy.