Every spring and summer, my phone starts ringing more often. The question is usually the same:
“We just got PCS orders. Do we sell, or do we rent the house out?”
If you bought in 2022 or 2023, that question can feel like a trap. Rates jumped, prices stayed high, and a lot of families don’t have much equity yet. So when orders arrive, you’re forced into two options that both hurt.
Option 1: Sell, and possibly bring money to the closing table
Most people don’t realize how expensive it is to sell a home until they try. Between agent fees (whatever you negotiate), seller closing costs, and the normal “get it ready” repairs and credits, it’s common for the total cost to land in the high single digits as a percentage of the sale price.
That’s not a problem if you’ve owned the house for a long time. It’s a big problem if you’ve owned it 18–30 months.
Option 2: Rent it out, and possibly write a check every month
Renting sounds like the easy answer until you run the real numbers.
Here’s what hits people after the first “rent covers the mortgage” moment:
A typical property manager may charge around 8%–12% of monthly rent for full service management. That may be worth every penny if you’re 800 miles away and you don’t want midnight maintenance calls. But it still comes out of your pocket.
What I see most often is this: the house rents, the mortgage gets paid, and the owner still ends up negative each month once the full list of expenses shows up. That monthly shortfall is especially painful because you’re also paying rent or a mortgage at your next duty station.
So why do some families still rent instead of sell?
Because renting can turn into a better long-term move, if you can afford the short-term pain.
Even a money-losing rental can build wealth over time for three simple reasons:
That’s the honest trade: you might “feed” the property for a while, but the math can improve as rents rise, the loan balance drops, and you stop being in the most expensive years of ownership.
The military angle makes it harder
Northwest Florida has steady housing demand because of Eglin Air Force Base, Hurlburt Field, and Duke Field. That helps. But it also means a lot of homeowners get orders at the same time, which can stack up listings and rentals during peak PCS months.
And once you’re gone, managing a property from another state is not something you do “on the side.” If you’re going to rent, treat it like a business. Have reserves. Have a plan. Assume something will break.
When selling can be the smarter move
Not everyone should be a landlord. In my experience, selling tends to make more sense when:
Sometimes the best financial move is the one that keeps the whole family stable.
One lever that really matters: the cost to sell
If your equity is thin, the fees you negotiate matter more than usual. Even a one-point swing in total selling costs can decide whether you walk away with something or walk away writing a check.
Whatever you do, negotiate everything. Nothing is “standard.” And don’t make a decision until you’ve seen two numbers in writing:
PCS orders are stressful enough. You don’t need guesswork stacked on top.
Jim Whatley is the Broker of Uber Realty, the Discount Real Estate Broker since 2007. You can get in touch with him here.
Editor’s note: This column is for general information only and is not financial, legal, or tax advice. Readers should consult qualified professionals regarding their specific situation.
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