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Free Rent-or-Sell Calculator · Michigan
Should You Rent Out Your Michigan Home?
Most owners compare the rent to their mortgage and stop there. Once you move out, your property tax goes up, your insurance changes, and a rental has costs your home never did. See your real number in about three minutes. Then we'll look up your exact tax for free.
Your Numbers
What Renting Your Home Really Costs
Grab your mortgage statement and your tax bill. Everything updates as you type.
What you keep each month
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Your first two years
What if your tenant…
Tap one to see it above.
Monthly breakdown
Want the exact numbers?
We'll look up your home's real non-homestead tax and check your rent against the local market — free.
Get My Free Rental Analysis
Free Rental Analysis
Get Your Exact Numbers — Free
The calculator uses an estimate for your rental property tax. Send us your address and we'll do the homework.
- Your exact homestead and non-homestead tax
- Your expected rent checked against the local market
- Your completed worksheet, sent back within 24 hours
- No cost, no obligation — managing rentals since 1995
Send Me My Rental Analysis
Your calculator numbers come with it, so you won't have to enter them twice.
Got it. We'll look up your property tax and send your completed analysis within 24 hours.
Questions sooner? Call or text 810-229-8150.
Questions sooner? Call or text 810-229-8150.
Before You Sign a Lease
What Changes When You Rent Your Michigan Home
Four things owners find out the hard way. None of them show up when you only compare rent to your mortgage.
Your property tax goes up
Michigan's homestead exemption removes up to 18 mills of school operating tax while you live in the home. Move out and those mills come back — often a 35–55% higher bill.
File Form 2602 with your assessor within 90 days of moving out. Skipping it doesn't avoid the tax; the county back-bills it with interest and penalties. Renting does not uncap your taxable value — only a sale or transfer does.
Your insurance changes
Your homeowner's policy doesn't cover a rental. A landlord policy usually costs about 10–25% more and covers the building and your liability.
It doesn't cover the tenant's belongings — tenants should carry renter's insurance. Many owners also add an umbrella policy for extra liability.
The 3-year capital gains clock starts
Live in a home 2 of the 5 years before you sell and up to $250,000 of profit is tax-free ($500,000 married filing jointly). Once you move out, you have about 3 years to sell and keep it.
Depreciation you claim while renting is taxed when you sell (up to 25%). Keeping it long-term? A 1031 exchange can defer the tax. Ask your CPA.
Your lender and association get a say
Most mortgages require you to live in the home about a year after closing. After that, renting is generally fine — but tell your lender, and ask whether your HELOC stays open. Some get frozen on a rental.
Condo and HOA bylaws can cap or ban rentals, set minimum lease terms, or require board approval. Check before you list.
Rental registration in the communities we serve
Some communities require you to register the rental and pass an inspection before a tenant moves in.
| Community | What's required |
|---|---|
| Ann Arbor | Inspection every 2.5 years, $175 per unit |
| Birmingham | Registration + inspection every 2 years, $125 |
| Clawson | Registration + inspection every 2 years, $80 per unit |
| Highland Twp | Registration + inspection every 3 years, $150 |
| Milford (village) | Registration $60 a year; inspection every 2 years |
| West Bloomfield Twp | Registration $50 every 3 years, plus a $140 inspection |
| Brighton (city) | Registration required; inspection every 3 years |
| Howell (city) | Registration + inspection every 2 years |
| Pinckney (village) | New registration program adopted late 2025 |
| No registration | Bloomfield Hills, Bloomfield Twp, Chelsea, Dexter, Milford Twp, Northville, Northville Twp, Novi, Plymouth, Saline, South Lyon |
Fees change. Confirm with the municipality before you rent. Sources: Michigan Management rental ordinance list, Ann Arbor fee schedule.
Common Questions
Renting Out Your Michigan Home: FAQ
Do property taxes go up if I rent out my house in Michigan?
Usually, yes. While you live in the home, Michigan's principal residence (homestead) exemption removes up to 18 mills of school operating tax. When you move out and rent it, that exemption ends and those mills are added back, which often raises the tax bill 35 to 55 percent. Renting does not uncap the home's taxable value; only a sale or other transfer does. You must file Form 2602 with your local assessor within 90 days of no longer living there.
How much more does landlord insurance cost than homeowners insurance?
A landlord policy usually costs about 10 to 25 percent more than a standard homeowners policy, because someone else lives in the home. It covers the building and your liability, not the tenant's belongings, so tenants should carry their own renter's insurance. Get a quote from your agent before you list the home for rent.
Do I need a rental license to rent my house?
It depends on the community. Novi, South Lyon, Northville, Bloomfield Hills and the Washtenaw communities of Dexter, Chelsea and Saline have no rental registration. Others do: Birmingham and Clawson inspect every 2 years, Highland Township every 3 years, and Ann Arbor every 2.5 years. Brighton and Howell also require registration and inspection. The calculator above shows the rules for each community we serve; confirm current fees with the municipality.
Will I owe capital gains tax if I rent my house and sell it later?
If you lived in the home 2 of the 5 years before the sale, up to $250,000 of profit ($500,000 if married filing jointly) can be tax-free. Once you move out, that gives you about 3 years to sell and keep the exclusion. Depreciation you claim while it is a rental is taxed when you sell, at up to 25 percent. Talk with a CPA before you decide.
How much does RCG Property Management charge?
Full-Service management is 10% of monthly rent plus one month's rent to place a tenant. Tenant Placement Only is a flat fee of one month's rent. Call 810-229-8150 to talk through your home.
What does the free rental analysis include?
We look up the exact homestead and non-homestead property tax for your address, check your expected rent against the local market, and send back your completed worksheet showing your new monthly payment, monthly cash flow and your first two years. There is no cost and no obligation.
Rent It or Sell It — We Do Both
RCG Property Management has managed Michigan rentals since 1995, and Realty Concierge Group sells homes across Livingston, Oakland and Washtenaw Counties. We'll show you both paths with real numbers.