Welcome back to the Landlord Survival Series. This time we're tackling a challenge almost every military homeowner in Central Texas faces sooner or later: the PCS.
Orders arrive, the report date is set, and suddenly you're deciding what to do with a house while also planning a move, a household goods shipment and maybe a new school for the kids. Many Fort Hood families choose to keep the home and rent it out. Done well, it can help cover the mortgage, build equity and give you a place to come back to. Done in a rush, it can turn into a long-distance headache.
This post walks through the decision to rent or sell, what changes when you own a home from far away, how military tenants and early lease termination work, and a realistic timeline from orders to a tenant moving in.
Rent or sell? The questions that decide it
There's no single right answer. The right choice depends on your numbers, your plans and how much risk you're comfortable carrying. Start with these questions:
- Will the rent cover the full monthly cost? Add up the mortgage payment, property taxes, insurance, HOA dues, a monthly reserve for repairs, and management fees. If market rent covers all of it with room to spare, renting is worth a serious look. Even if the rent doesn't cover every cost, renting can still work as a long-term investment. If a market-rate rent covers most of your expenses, the difference you pay each month goes toward building equity, and you avoid selling at a possible loss.
- How much equity do you have? If you bought recently, selling may barely cover the agent fees and closing costs. Renting for a few years gives the home time to build equity.
- Do you plan to come back? Many soldiers return to Fort Hood later in their careers or retire in Central Texas. Keeping the home can mean a place to land.
- Can you handle a vacant month or a major repair? Every rental will eventually have a turnover, a broken air conditioner or a roof claim. You need cash reserves to absorb those without stress.
- Do you want to be a landlord? Even with a manager, you're still the owner. You approve big repairs, review statements and make the final calls.
If the rent covers your costs, you have reserves and you'd like to hold onto the property, renting is often a smart long-term move. If the gap is more than you can comfortably carry, or you need the cash for your next move, selling may be the cleaner choice. Talk with a tax professional before deciding, since renting can affect your taxes and your capital gains exclusion when you eventually sell.
What changes when you own from a distance
Turning your home into a rental changes more than who lives there. Before you leave, take care of these items:
- Insurance. A standard homeowner's policy is written for an owner who lives in the home. Once it's rented, you'll typically need a landlord (dwelling fire) policy. Call your insurer before the tenant moves in, not after a claim.
- Your mortgage. VA and other owner-occupied loans require you to live in the home when you buy it, but PCS orders are a common and accepted reason to move out later. Let your lender know the home will be rented and keep making payments as usual.
- Homestead exemption. Texas homestead exemptions are tied to your principal residence. Check with the Bell County or Coryell County Appraisal District about how your PCS affects your exemption so you aren't surprised by a tax bill.
- Taxes. Rent is taxable income, but you can usually deduct expenses like repairs, management fees, insurance and depreciation. Service members can also have special rules for the home sale capital gains exclusion while on extended duty away from home. A tax professional familiar with military clients is worth the call.
- Paperwork and access. Set up a way to sign documents and handle business remotely. A specific power of attorney for the property can help if you'll be deployed or hard to reach. Make sure your manager has a reliable way to reach you, and that your contact information is current with your lender, insurer and HOA.
- Reserves. Keep a dedicated account for the property with enough to cover a few months of mortgage payments and a major repair. Distance makes surprises feel bigger.
Military tenants and early lease termination
In a Fort Hood market, many of your best applicants will be service members, just like you. They often have steady income and a strong reason to protect their record. They also have a legal right you need to plan for.
Under the federal Servicemembers Civil Relief Act, a service member who signs a lease and then receives PCS orders or deployment orders for 90 days or more can end the lease early by giving written notice and a copy of the orders. For a lease with monthly rent, the termination generally takes effect 30 days after the next rent due date following the notice. The landlord can't charge an early termination penalty for using this right. Texas Property Code § 92.017 provides similar protections at the state level, and the Texas REALTORS residential lease includes the required language.
This isn't a reason to avoid military renters. It's simply part of owning a rental in a military community. The answer is planning:
- Keep enough reserves to cover a turnover on short notice
- Use a lease that handles military termination correctly
- Work with a manager who can market and re-lease the home quickly
- Keep the home in rent-ready condition so turnovers are fast
You'll be on the other side of this too. If you're renting at your next duty station, the same protections apply to you.
A PCS rental timeline
The earlier you start, the smoother it goes. Here's a realistic timeline once you have orders in hand:
- As soon as you have orders (60 to 90 days out): Decide whether to rent or sell. Get a rental price estimate and run your numbers. If you'll use a property manager, start the conversation now.
- 45 to 60 days out: Call your insurer, lender and appraisal district. Schedule any repairs, painting or cleaning the home needs to be rent-ready.
- 30 to 45 days out: Have the home photographed and listed. If your move-out date allows, the home can often be marketed while you're still living in it, with showings scheduled around your family.
- 2 to 4 weeks out:Screen applicants and sign the lease. Set up rent payment and owner payouts.
- Move-out week: Complete the move-in condition report with dated photos, rekey the locks and test the smoke alarms. Hand off keys, garage openers and appliance manuals.
- After you leave: Your manager handles the move-in, rent collection and maintenance, and sends you monthly statements wherever you're stationed.
Orders don't always come with 90 days of notice. If yours came late, the same steps still apply. They just happen faster, and having a manager lined up matters even more.
How Resolute Leasing helps PCSing owners
Resolute Leasing was founded by a retired Army Chief Warrant Officer who has lived the PCS cycle firsthand. We know how little time you have between orders and your report date, and we build our process around it.
We price your home against the current Killeen and Fort Hood area rental market, coordinate make-ready work, market the home and screen every applicant against written criteria. Once your tenant is in place, we collect rent, handle maintenance and send monthly payouts by ACH by the 10th, wherever the Army sends you next. We don't charge a management fee while your home is vacant, so we only do well when your home is rented.
If you have orders, or think they're coming, see how our management services work or call us at (254) 271-0001. We'll help you run the numbers on renting versus selling and build a plan that fits your timeline.
Sources: 50 U.S.C. § 3955 (SCRA lease termination); Tex. Prop. Code § 92.017; IRS Publication 523, Selling Your Home.
