The Real Cost of Renting Out Your Home After a PCS Move

How much does it actually cost to rent out your home instead of selling before a PCS move? Beyond the mortgage, most landlords in the Cabot area should budget for property management (typically 8–10% of monthly rent), a vacancy cushion, ongoing maintenance, and the cost of managing all of it from another state. For a lot of PCS homeowners, once those numbers are added up, the "extra income" from renting is thinner than it looked on paper — or it disappears entirely.

If you locked in a VA loan rate a few years back, the instinct to hold onto your Cabot home and rent it out makes sense — giving up a 3% rate feels like giving up money. But renting isn't passive income. It's a part-time job you're doing from wherever your next duty station happens to be. Here's what that job actually costs.

The Costs That Show Up on Day One

Property management. Unless you have someone local you fully trust to handle tenant issues, most out-of-state landlords hire a property manager. Expect this to run roughly 8–10% of monthly rent, plus often a flat fee for placing a new tenant.

Insurance changes. A landlord policy typically costs more than a standard homeowner's policy, since it covers a property you're not living in.

Getting the home rent-ready. Even a well-kept home usually needs some work before it's rented — fresh paint, carpet cleaning, minor repairs — costs that come out of pocket before any rent comes in.

The Costs That Show Up Later

Vacancy periods. Between tenants, the mortgage doesn't pause. A month or two of vacancy a year isn't unusual, and it should be budgeted for rather than treated as a surprise.

Maintenance and repairs. HVAC, water heaters, roofs — these don't wait for a convenient time. As a landlord, you're the one fielding that call, even from three states away.

Tenant turnover. Every time a tenant moves out, there's cleaning, repairs, and marketing the vacancy again — all of which cost time and money.

The mental load. This one doesn't show up on a spreadsheet, but it's real: a maintenance call at 11pm your time, a late rent payment you have to chase down, a lease question you don't know the answer to. For someone already managing a PCS move, that's a lot to carry from a distance.

Running the Actual Math

Before deciding to rent, it's worth putting real numbers on paper:

1. Expected monthly rent for your home in the current Cabot rental market
2. Minus your mortgage, taxes, and insurance
3. Minus property management (8–10%)
4. Minus a realistic maintenance reserve (often estimated around 1% of home value per year)
5. Minus an allowance for vacancy

What's left is your actual monthly cash flow — not the number you get by just comparing rent to your mortgage payment.

When Renting Still Makes Sense

None of this means renting is the wrong call for everyone. It can make sense when:

• Your rate is significantly below current market rates
• Local rent comfortably covers all the costs above, with room left over
• You have a property manager or trusted local contact you're confident in
• You're genuinely comfortable being a landlord, not just holding onto the idea of one

For everyone else, selling tends to come out ahead once the full picture is on the table — no vacancy risk, no 11pm phone calls, and your equity back in hand instead of tied up in a house you're not living in.

FAQ

Is renting out my home after a PCS move considered passive income? Not really — most landlords, especially those managing from out of state, are actively involved in tenant issues, maintenance, and financial tracking, even when using a property manager.

What percentage of rent goes to property management? Typically 8–10% of monthly rent, though this varies by company and the level of service included.

How do I know if renting or selling is the better financial move? Running the actual numbers — expected rent minus all ownership and management costs — against what you'd net from selling is the only way to know for sure. A local market comparison can help fill in the rental and sale-price sides of that equation.

Want help running your specific numbers? Call or text Catarina at 209-985-6476, or visit www.ar-property.com. Se habla Español | Falo Português.