Multifamily Property Tax Appeals

In Michigan, when a multifamily property is sold, the taxable value "uncaps" — meaning it resets to the full State Equalized Value (SEV). This can double or triple your tax bill overnight. Even after uncapping, the new assessed value can be challenged if it exceeds fair market value. Learn more about Michigan uncapping. Challenging the assessed value after uncapping is one of the most time-sensitive actions a new owner can take in Michigan, since the appeal deadline may fall within the same year as the acquisition. Our team regularly works with buyers who discover that their assessment spiked dramatically at closing and need to act quickly to protect their investment. See our Michigan property tax deadlines guide to understand the timing requirements.

The Det PILOT (Payment In Lieu Of Taxes) program allows Detroit multifamily property owners (6+ units) to replace their traditional property tax with a significantly lower service charge — potentially saving up to 80%. Once approved, the reduced rate is locked in for 15 years. EPTA handles the entire application process. Learn more about the Det PILOT program. Spots are awarded on a first-come, first-served basis and are limited by city ordinance, so timing the application correctly is critical. Our team manages the full application process for Detroit multifamily owners and has experience navigating the city's administrative requirements to maximize the likelihood of approval.

Yes. Apartment buildings and all multifamily properties (5+ units) have the right to appeal their property tax assessments. Declining occupancy, rent concessions, rising operating costs, and deferred maintenance are all strong grounds for an appeal. Start with a free assessment review. Even properties that appear to be performing adequately may be over-assessed if the assessor's income model overstates rents, understates expenses, or uses a compressed cap rate that doesn't match current market data. A free review is the most efficient way to determine whether a meaningful reduction is achievable.

Savings depend on the size of the property, the degree of over-assessment, and local market conditions. Multifamily property owners routinely see meaningful reductions in their annual tax bills. There's no cost to find out — request a free review to see if your property qualifies. Savings scale with property size and the degree of over-assessment, but even modest corrections to income and expense assumptions in the assessor's model can produce reductions that improve annual cash flow and asset value for multifamily investors. Our clients have included syndicates with portfolios spanning multiple Michigan counties. See what our clients say about the process and the results.

The income approach is the primary assessment method for multifamily properties, and it is generally the most appropriate given that apartment buildings are income-producing assets with an active investment market. Assessors capitalize net operating income — gross rental income less vacancy, operating expenses, and reserves — at a market cap rate to arrive at an indicated value. The most common assessment errors occur within the income approach: using market rents rather than actual rents, understating vacancy, understating expenses, or applying cap rates that don't match what investors are actually paying for comparable assets in the current market. Each of these inputs, when corrected, can produce a meaningful reduction in assessed value. Read more about how commercial properties are assessed to understand the income approach in depth.

EPTA handles multifamily property tax appeals in Michigan, Indiana, and Ohio. In Michigan, multifamily appeals are filed with the Michigan Tax Tribunal, with petition deadlines typically falling on May 31 or July 31 depending on the property classification. In Indiana, appeals proceed through the county Property Tax Assessment Board of Appeals (PTABOA) and, if necessary, the Indiana Board of Tax Review (IBTR). In Ohio, appeals are filed with the county Board of Revision, generally by March 31 following the relevant tax year. In Michigan specifically, our team also handles Det PILOT applications for Detroit multifamily property owners, a separate program that can reduce property taxes by up to 80% for qualifying properties. See our property tax appeal deadlines resource for state-specific filing dates.

Multifamily appeals that are based on well-documented income, expense, and market data have a strong track record of producing reductions, particularly in markets where operating costs have risen faster than rents and where assessors have relied on market-average income assumptions rather than actual property performance. Our team evaluates each property before committing to an appeal, which means we pursue cases where the evidence supports a favorable outcome. Most multifamily appeals are resolved through negotiated settlement with the assessor's office, avoiding the time and cost of a formal tribunal or board hearing. Success is ultimately measured by the sustained reduction in annual tax liability — which for larger multifamily properties can represent a significant improvement in cash flow and asset value. Read more about what drives appeal success rates.