Are you considering purchasing a rental property in Milwaukee, WI, and becoming a landlord? If so, you're on the right financial track. According to ZipRecruiter.com, landlords in "The City of Festivals" earn an average annual salary of $85,992, the sixth highest across the state.
Remember, though, that your success as a landlord will hinge on many factors, including the effectiveness of your property tax management strategies. Because the less effective they are, the more likely you'll face financial losses, even dreaded IRS audits and fines!
But worry not, as the property management experts at PMI of Greater Milwaukee are here to help. Read on for insights into efficient tax planning and rental homeownership tax advice.
1. Understand Your Property Valuation
Your property tax primarily depends on its assessed value. The City of Milwaukee, WI, has an up-to-date chart of tax rates for your reference.
Understanding how the local government assesses property valuations can empower you to dispute incorrect valuations. So, one of the most crucial real estate tax strategies is to check if your property's value reflects current market conditions. If it appears inflated, consider appealing the assessment through the local Board of Review to reduce property tax costs.
2. Take Advantage of Tax Exemptions
Milwaukee offers various property tax exemptions that many owners overlook, such as:
- Homestead Exemption: Available for primary residences, reducing property taxes for eligible homeowners
- Veteran's Exemption: For veterans who meet the requirements, this can significantly lower tax bills
- Wisconsin Property Tax Credit: A tax relief program aimed at low to moderate-income homeowners
Research which exemptions apply to your situation to help with your property tax savings goals.
3. Stay Informed on Tax Laws
Tax laws often change, affecting the computation of your property taxes. So, keep yourself informed about local legislation to protect yourself from sudden increases in your tax liability. Subscribe to local government newsletters or follow community boards online to stay updated.
4. Hire a Property Management Company
If managing property taxes is too challenging or time-consuming, consider hiring a property management company. A full-service property management agency will handle all aspects of your property, including financials and taxation.
With a property manager, you can focus on other critical aspects of your investments. Count on them to ensure you can minimize property owner and landlord stress and:
- Receive timely reminders for tax deadlines
- Gain insights on tax exemptions and deductions
- Can access professional assistance with valuation disputes or appeals
Up Your Property Tax Management Ante in Milwaukee
Effective and efficient property tax management is one of the cornerstones of being a successful property investor and landlord in Milwaukee, WI. So, as early as today, follow all our tips, as they can help you save money, avoid penalties, and optimize your investment's financial performance.
If you're ready to augment your landlord experience through full-service property management, PMI of Greater Milwaukee is happy to help! Our owner and managing broker, Michael Baron, is proud to have been a licensed real estate broker since 2006 and an investment real estate professional for over two decades. With his leadership, our team will strive to make your Milwaukee rental thrive and profit.
Call us today for a complimentary consultation!
