4 Reasons Why Military Homeowners Shouldn't Rent Their Homes
Should You Sell or Rent Before Your PCS Move?
Military personnel know that every few years the chances of moving greatly increases. When you receive your next PCS, whether it’s next month or in a year or two, you can either move on from your home quickly with a reputable home buyer or you can rent out your property. Here are a few things to consider before renting your home:
1) Renting to Another Military Family
Although military towns are close knit communities and it’s always nice to know or at least have a great referral for a prospective renter, renting out to another military family may not be ideal. For example, if you are leaving town because of a PCS, it will only be a matter of time before a military family renting your home is in the same predicament. Military families will want a clause in the contract allowing them to vacate the home with a 30-day notice. This results in a vacant home, meaning zero income and added stress.
2) Hiring a Property Manager
Regardless of who rents your home, you will need a property manager to look after your property when you live elsewhere. This results in paying a portion of the capital from the monthly rent check to the individual responsible for looking after the property. The end result is that hiring this professional cuts into your potential profits from renting.
3) Managing Maintenance Costs
Although a property manager will be compensated for taking care of the property, the homeowner will be responsible for all maintenance costs. This can include anything from your everyday handiwork to significant repairs. Even if you have great tenants that take excellent care of your home, all of the appliances will depreciate over time with regular use.
4) Don’t Expect Property Value to Increase Much
Considering that you’re renting out your home while you are away, you cannot expect the conditions of your home to improve. Perhaps if you do everything right you can maintain your lot. Considering the price of a property manager, small or big repairs, regular maintenance, and whether or not you are prepared to handle being a long distance landlord, it is likely best to move on from your home when you receive your next PCS.