Brentnie Daggett, Rentec Direct
Every year, thousands of military families receive orders to relocate across the state, across the country or even overseas. Unlike civilian homeowners who may stay in the same home for a decade or longer, active-duty service members are estimated to move 10 times more frequently, averaging a relocation every two to three years. This creates a much shorter timeline to build equity, establish roots and develop a long-term housing strategy. These frequent moves affect not only military families, but also the properties they own and the housing markets they leave behind and enter.
Military members may be renters, homeowners or landlords—sometimes all three throughout the course of their careers. Each role comes with its own set of unique challenges and considerations, often forcing important housing and financial decisions on a tight timeline. When it’s time to move, should they sell their home and use the proceeds toward their next purchase? Rent the property out and become a long-distance landlord?
The answer depends on a variety of factors, from local market conditions and expected rental income to available equity and the likelihood of returning to the area in the future. There is no one-size-fits-all solution, but understanding the pros, cons and long-term implications of each option can help military homeowners make smarter financial and real estate decisions.
Should You Sell or Rent Your Home?
Both options offer potential advantages and trade-offs. While selling may provide immediate access to equity and simplify the moving process, keeping the property can create opportunities to generate rental income and build long-term wealth.
When Selling Makes Sense
- The local market is in your favor: A competitive real estate market can often favor sellers, putting homeowners in a position to maximize their return and capitalize on years of appreciation
- Limited equity or cash reserves: Keeping a property and becoming a landlord usually requires financial flexibility to cover vacancies, repairs and unexpected expenses.
- Your move is long-distance: Managing tenants and maintenance from another state (or another country) can be challenging and time-consuming. Hiring a local property manager is an option, but it adds another expense.
- You’re not coming back: If you don’t have any interest in returning to the area in the future, selling may simplify finances and eliminate the responsibilities of becoming a long-distance landlord.
When Renting Makes Sense
- Continue building equity: Renting out a property allows tenants to help pay down the mortgage while the home continues to appreciate in value over time.
- Generate rental income: Depending on your local market and operating costs, a rental property could provide positive monthly cash flow to help offset any housing expenses at a new duty station.
- You’re in a strong rental market: Holding onto a property in an area with high rental demand and strong growth potential can provide long-term financial benefits and future flexibility.
- You plan to return: Renting gives you the ability to maintain ownership of a home you may eventually move back into in the future.
Before making a decision, homeowners should carefully evaluate local market conditions, projected rental income, ongoing maintenance costs and their personal comfort level with becoming a landlord. What makes sense for one military family may not be the best choice for another.
When Military Homeowners Become Landlords
Questions to ask before turning your home into a rental:
- What is the average market rent in my area?
- Will rental income cover my mortgage, insurance and maintenance costs?
- Do I have savings set aside for vacancies and repairs?
- Can I realistically manage the property from afar?
- Is hiring a property manager a realistic option?
Modern property management software has made remote landlording easier than ever, offering tools like virtual tours, online rent collection, electronic lease signing, digital maintenance requests and tenant portals. If you become a long-distance landlord, consider building a network of trusted local contacts and service providers who can help address issues as they arise. If managing a property from afar isn’t a realistic option, a professional property manager can oversee day-to-day tasks like leasing, inspections, maintenance and tenant communication.
A Note on Military Renters
Military tenants can be an attractive option for landlords—active-duty service members typically bring stable employment, reliable income and a housing allowance that helps cover rental expenses. If you are renting to military tenants, it’s important to understand that they are subject to relocation orders that can impact their housing plans and your lease terms. Under the federal Servicemembers Civil Relief Act (SCRA), service members may be able to terminate a lease without penalty when they receive relocation orders or are deployed. Landlords should be mindful of these unique protections and ensure lease agreements comply with federal and state laws when renting to other members of the military.
Final thoughts
Military moves create housing decisions that many civilian homeowners never have to face. By understanding the implications of selling versus renting, service members can turn relocation challenges into opportunities to build long-term wealth. Military homeowners often become long-term investors out of necessity, but success depends on treating housing decisions as financial strategy rather than short-term circumstance.
For landlords, renting to military tenants can offer stability and reliable income, though relocation orders can sometimes lead to early lease terminations. For service members, homeownership is increasingly accessible through specialized loans and resources, creating the flexibility to either sell or rent when duty stations change.
Ultimately, whether you decide to sell or rent, military families will benefit from seeking guidance from local real estate professionals and military advisors to make the best-informed decision for their situation.
Brentnie Daggett is a writer and infographic master for the rental and property management industry. She loves to share tips and tricks to assist landlords and renters alike. To learn more about Daggett, and to discover more great tips for renters, visit www.rentecdirect.com.
