Military Relocation: Should You Rent Out Your San Diego Home?

As an active duty member of the military, you know PCS orders can come any time, requiring you to relocate out of San Diego and into a new station. If you own a home here, it can be difficult to decide what to do with it. Should you just sell the property and move on, or would it make more sense financially to hold onto the asset and rent it out?

Owning real estate is a good way to establish and maintain financial security, and renting it out can be profitable, especially in a market like San Diego. This is a region that historically has seen increasing prices and rising property values. It could be difficult to re-enter the market if you decide to come back later and buy something else. 

We believe that you should rent out your home when you’re moving on. If you partner with a local San Diego property manager who has a record of success with military and out-of-state owners, you’re setting yourself up for a successful investment experience. 

Renting Leads to Monthly Income

San Diego has a strong rental market. This is due in part to the military presence here but also because we’re always growing economically. San Diego is America’s Finest City for a reason.

Rental rates are stable and increasing, meaning you can count on a pool of qualified tenants. Having a tenant move into your property leads to regular rental income which can go towards paying down the mortgage on your investment. You’ll increase the return you earn on your investment, and you’ll have consistent cash flow. 

When you have good tenants in place, you’ll be able to earn income on your property. If you sell your home right now, you may earn some money, but it likely will not grow the way your asset will increase in value.

Additional Benefits to Renting: Taxes and Appreciation

If you really loved your time in San Diego and you’re thinking about coming back here at some point once your service is over, you have an even greater incentive to hold onto the property and rent it out. Even if you have no plans to return to Southern California, a rental property in San Diego will always be a valuable investment. 

You should also consider taxes. Selling may require you to pay capital gains taxes. Renting it out, however, will provide you some tax relief because you’ll be able to depreciate the asset as well as deduct mortgage interest, insurance, property management and other professional fees, and the cost of maintenance and repairs. 

Work with Professional San Diego Property Management 

A lot of people aren’t thrilled with the idea of becoming a landlord. You might be worried about collecting rent, making repairs, and finding a tenant who doesn’t destroy your home. There’s an easy way to access the peace of mind you need. Professional San Diego property managers are able to protect your home and deliver a successful rental experience for you and the tenants who live in your home. A good management company will help you prepare your property for the rental market, advertise it to potential renters, and screen applicants thoroughly.

Once a tenant is placed, your property manager will collect rent on your behalf. There will be regular maintenance performed, emergencies responded to, and a careful tracking of income and expenses. You’ll be able to view all statements, invoices, and inspection reports. 

We know the San Diego sales market is attractive to sellers. Inventory is low, and it’s a good time to make some money. However, if you’re thinking long term and assessing your plans after this particular military station, we think you’ll do well renting out your home. And, we can help.