Who is the owner of tenant-installed leasehold improvements of a real property nature?
Typically, tenant-installed leasehold improvements of a real property nature become the property of the landlord upon installation. This means that, STARTING IN 2003, these tenant-installed leasehold improvements of a real property nature are typically assessable to the landlord as part of the real property assessment. QUESTION #11: How will leasehold improvements (LHI) assessable under MCL 211.8(h) be described on the assessment roll? There are two answers to this question depending on whether the LHI are owned by the landlord or the tenant. 1) Tenant-Installed Leasehold Improvements (LHI) of a Real Property Nature Which Become the Property of the Landlord Upon Installation. As discussed earlier in Question #10, tenant-installed leasehold improvements of a real property nature typically become the property of the landlord upon installation. The tenant will report these LHI in a separate section of the personal property statement. Since the landlord will already have a real property as
