If you’re in the military and relocating, selling your home isn’t your only option. Many service members consider renting out their property instead—whether for extra income, long-term investment potential, or simply to keep their home while stationed elsewhere. But being a landlord comes with responsibilities too. Here’s what to think about before taking that step.
Possible Financial Benefits
Renting out your home while serving can help offset the costs of homeownership. If your rental income covers more than your mortgage, taxes, and upkeep, the extra cash may help support your financial goals.
Over time, if your home gains value and your mortgage balance shrinks, you could build equity. Some homeowners use that equity in the future—such as through refinancing—to fund other priorities. Just be aware that refinancing or selling later may have tax or financial consequences, so it’s wise to speak with a qualified advisor before making any decisions.
How VA Loan Rules Apply
If you purchased your home using a VA loan, there are specific rules to consider before renting it out. VA loans are intended for primary residences, not investment properties. However, under certain conditions, renting out your VA-financed home is permissible.
Occupancy Requirements
When you close on a VA loan, you’re required to certify your intent to occupy the property as your primary residence. Generally, you must move in within 60 days of closing and live there for at least 12 months. This period ensures compliance with the VA’s occupancy guidelines.
Exceptions for Military Relocation
Active-duty service members who receive Permanent Change of Station (PCS) orders may be exempt from the 12-month occupancy requirement. In such cases, you can rent out your home earlier, provided you notify your lender and supply the necessary documentation.
Multi-Unit Properties
The VA allows loans for properties with up to four units, provided you occupy one as your primary residence. This means you can purchase a duplex, triplex, or fourplex, live in one unit, and rent out the others immediately. However, you must move into the property within 60 days of closing and intend to live there for at least 12 months.
Impact on Future VA Loan Entitlement
Renting out your VA-financed home doesn’t automatically restore your full VA loan entitlement. To regain full entitlement for another VA loan, you typically need to sell the property and repay the original loan in full. Alternatively, you can apply for a one-time restoration of entitlement without selling, but this option is limited and subject to specific conditions.
Before deciding to rent out your VA-financed home, it’s wise to consult with your lender to ensure compliance with all VA and lender-specific requirements.
Landlord Responsibilities and Challenges
Renting out your home can be rewarding, but it also comes with real responsibilities—especially if you’re stationed far away. As a landlord, you’ll need to:
- Advertise your property and screen tenants
- Draft and manage rental agreements
- Respond to maintenance and repair needs
- Handle rent collection and possible disputes
If you’re on active duty or deployed, managing all of this remotely can be difficult. That’s why many service members hire a property management company. These companies typically charge between 8% and 12% of the monthly rent, and may also charge additional fees when finding new tenants.
Another option is to handle tenant communication and rent collection yourself while hiring a local handyperson for maintenance. Whichever route you choose, it’s important to plan ahead so your property is cared for and your tenants know what to expect.
Tips for Managing a Rental Property Remotely
If you’re stationed away from your rental property, it’s essential to stay organized and proactive. Here are a few tips to help keep things running smoothly:
Set Clear Expectations
Make sure your lease agreement outlines who’s responsible for what—especially when it comes to maintenance and repairs. Clarify what types of issues the tenant should report and how quickly they can expect a response.
Maintain Reliable Communication
Tenants should always know how to reach you, your property manager, or your designated maintenance contact. Providing a single point of contact helps avoid confusion during emergencies.
Schedule Regular Inspections
Plan ahead for routine check-ins to catch small issues before they become big ones. If you can’t visit yourself, consider hiring a local professional to do an annual walkthrough.
Keep Good Records
Track rent payments, repair requests, and maintenance work. Digital property management tools can help you stay organized and provide a record in case any issues come up.
Is This the Right Move for You?
Before renting out your home, take time to weigh your goals, responsibilities, and comfort level with managing a property from afar. Ask yourself:
- Do I plan to return to this home in the future?
- Am I comfortable handling tenant issues or hiring help to manage them?
- Will the rental income cover my costs—or come close?
- Do I have a backup plan if the home sits vacant for a while?
Renting your property while serving can be a smart move, but it’s not a passive one. Treating it like a business—and planning ahead—can help you avoid headaches later.
Final Thoughts
Becoming a military landlord can be a practical way to hold onto your home and potentially earn extra income. But it also requires planning, reliable support, and a clear understanding of your responsibilities. If you’re considering this path, review the rules carefully and consider reaching out to a housing counselor or your base legal office for guidance on your specific situation.
