Rental Property Management for Military: Long-Distance Landlording Complete Guide

Bottom Line Up Front: Military landlords face unique challenge: PCS every 2-3 years = managing rentals from 1,000+ miles away. Solution: Hire property manager (8-10% of rent + $500-$1,000 leasing fee) or use DIY systems (tenant screening, maintenance network, online rent collection). Screen tenants ruthlessly (credit 650+, income 3x rent, references). Budget 10% rent for maintenance, 8% vacancy, 10% property manager = 28% total expenses. Cash flow formula: Rent - (Mortgage + Taxes + Insurance + Maintenance + Vacancy + PM) = Minimum $100-$200/month profit.

The Military Landlord Reality

Why Military Members Become Landlords

Common path:

1. Buy house at duty station (VA loan, $0 down)
2. Live there 2-3 years
3. PCS to new location
4. Keep house as rental (rent covers mortgage)
5. Repeat every PCS
6. Retire with 5-8 rental properties

Challenges of Long-Distance Landlording

Problem 1: You're in California, Rental in North Carolina

• Can't show property to tenants
• Can't handle repairs personally
• Can't collect rent in person
• Can't evict (if needed) without local presence

Problem 2: Deployments

• 6-12 months unavailable
• Tenant emergency? Can't respond
• Need systems/people to handle everything

Problem 3: Time Zones

• You're in Japan (JST), rental in Texas (CST)
• 14-hour time difference = communication delays

Solutions:

• Hire property manager (most common)
• Build reliable maintenance network
• Use technology (online rent collection, smart locks, cameras)
• Set clear systems BEFORE you PCS

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Property Manager vs. DIY (Decision Framework)

Hire Property Manager If:

✅ Property is >500 miles away
✅ You deploy frequently
✅ You value your time
✅ You have multiple properties
✅ You're risk-averse (PM handles legal compliance)

Cost: 8-10% of monthly rent + leasing fees

Example:

• Rent: $1,800/month
• PM fee: 10% = $180/month ($2,160/year)
• Leasing fee: $1,800 (when new tenant found)
• Total annual cost: $2,160-$3,960 (depending on tenant turnover)

DIY If:

✅ Property is local (<50 miles)
✅ You're not deploying soon
✅ You enjoy managing (some people do)
✅ You have reliable handyman network
✅ You want to maximize cash flow

Savings: $2,000-$4,000/year (no PM fees)

Time commitment: 5-10 hours/month (more during tenant turnover)

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How to Choose a Property Manager

Red Flags (AVOID)

❌ Charges >12% monthly fee (standard is 8-10%)
❌ Requires long-term contract (>1 year)
❌ Poor communication (takes days to respond)
❌ No online owner portal (can't track financials)
❌ Bad reviews on Google (check extensively)
❌ Handles <50 properties (too small, not professional)

Green Flags (GOOD)

✅ 8-10% monthly fee
✅ Month-to-month contract (flexibility)
✅ Fast communication (<24 hour response)
✅ Online portal (Buildium, AppFolio, etc.)
✅ Many positive reviews
✅ Manages 100+ properties (established business)
✅ Military-friendly (understands deployments/PCS)

Questions to Ask Property Managers

1. What's your fee structure?

• Good answer: "10% monthly, $1,000 leasing fee, $50 monthly coordination fee for repairs"
• Bad answer: Vague fees, hidden costs

2. How do you screen tenants?

• Good answer: "Credit check, background check, income verification (3x rent), rental history"
• Bad answer: "We check their application" (too vague)

3. How do you handle maintenance?

• Good answer: "We have network of licensed contractors, get 3 bids >$500, approve with owner"
• Bad answer: "We handle it" (no details)

4. What's your average vacancy rate?

• Good answer: "5-7% (18-25 days between tenants)"
• Bad answer: ">10%" (poor marketing/screening)

5. Do you have an online owner portal?

• Good answer: "Yes, you can see all financials, maintenance requests, rent collection in real-time"
• Bad answer: "We email monthly statements" (outdated)

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DIY Property Management Systems

System 1: Tenant Screening (Most Important)

Minimum requirements:

• Credit score: 650+
• Income: 3x monthly rent (verified with paystubs)
• No evictions in last 7 years
• Positive references from last 2 landlords
• Clean background check (no felonies)

Red flags (Auto-reject):

• Credit score <600
• Multiple late payments in last year
• Eviction history
• Can't provide income verification
• Previous landlord says "Do not rent to them"

Tools:

• Zillow Rental Manager (free tenant screening)
• Cozy.co (free, includes credit check)
• TurboTenant (free tenant screening)

Cost: $30-$50 per applicant (applicant pays)

System 2: Lease Agreement

Use state-specific lease:

• Download from state realtor association ($20-$50)
• OR use EZ Landlord Forms ($30-$100)

Must include:

• Rent amount and due date (1st of month)
• Late fees ($50 after 5 days, $10/day after that)
• Maintenance responsibilities (tenant fixes <$100, you fix >$100)
• Pet policy (if allowed, pet deposit $300-$500)
• Lease term (12 months standard)
• Security deposit (1-2 months rent)

Have lawyer review first lease (one-time $200-$500, reuse template)

System 3: Rent Collection

Online only (NO cash, NO checks):

• Cozy.co (free ACH, $3 credit card fee)
• Zillow Rental Manager (free)
• Venmo/Zelle (instant, but no paper trail - use for trusted tenants only)

Autopay: Encourage tenants to set up autopay (reduces late payments)

Late fee enforcement: ALWAYS charge late fees (being "nice" trains bad behavior)

System 4: Maintenance Network

Build reliable team BEFORE you PCS:

Handyman (for small repairs):

• $50-$75/hour
• Fixes: leaky faucets, drywall holes, door locks
• Find: Thumbtack.com, TaskRabbit, local Facebook groups

Plumber (for water issues):

• $100-$200 service call
• Find: Yelp, Google Reviews (4.5+ stars, 100+ reviews)

HVAC (for heating/cooling):

• $150-$300 service call
• Find: Local HVAC company (get on annual maintenance plan)

Electrician:

• $100-$200 service call
• Find: Licensed, insured (critical for electrical)

Lawn care (if needed):

• $30-$60/visit (bi-weekly)
• Find: Local lawn service

Property inspector:

• $200-$400 annual inspection
• Visits property, takes photos, sends report
• Find: BPO (broker price opinion) companies

Emergency 24/7 service:

• For midnight pipe bursts, AC failures
• Often plumbers/HVAC offer 24/7
• Keep 3 numbers handy

System 5: Communication with Tenant

Response time expectations:

• Emergency (flood, no heat in winter, no AC in summer): <2 hours
• Urgent (broken appliance): <24 hours
• Non-urgent (cosmetic): <3 days

Communication methods:

• Text: For quick updates
• Email: For official notices (repair authorizations, lease renewals)
• Phone: For complex issues

Set boundaries:

• "Contact me for maintenance >$100, handle small stuff yourself"
• "Text me first, call if true emergency"

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Maintenance Budgeting & Cash Flow

The 50% Rule (Quick Estimate)

Rule: Expenses (not including mortgage) = 50% of rent

Example:

• Rent: $1,800/month
• Expenses: $900/month (maintenance, property tax, insurance, vacancy, PM)
• Mortgage: $1,200/month
• Cash flow: $1,800 - $900 - $1,200 = -$300/month (NEGATIVE = bad deal)

This rule helps you avoid bad properties BEFORE buying

Detailed Expense Breakdown

For $1,800/month rent:

• Property tax: $150/month ($1,800/year)
• Insurance: $100/month
• Maintenance reserve: $180/month (10% of rent)
• Vacancy reserve: $144/month (8% of rent)
• Property manager: $180/month (10% of rent)
• HOA (if applicable): $50/month
• Total expenses: $804/month

Mortgage: $1,200/month

Total monthly cost: $2,004
Rent: $1,800
Cash flow: -$204/month (LOSING MONEY!)

Fix: Either increase rent OR don't buy this property

Minimum cash flow: $100-$200/month (after ALL expenses)

Maintenance Emergency Fund

Build reserve: $5,000-$10,000 per property

Covers:

• AC replacement: $4,000-$7,000
• Roof repair: $1,000-$5,000 (full replacement $10K-$20K)
• Water heater: $800-$1,500
• Appliances: $500-$1,200 each

How to build:

• Save 10% of rent monthly
• After 3 years: $6,480 saved ($1,800 × 10% × 36 months)

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Tenant Turnover (Biggest Cost)

Turnover Costs

Average turnover: $2,000-$5,000

Breakdown:

• Vacancy (1 month): $1,800 (lost rent)
• Cleaning: $200-$400
• Paint: $500-$1,000 (DIY cheaper)
• Repairs (nail holes, broken items): $300-$800
• Leasing fee (if PM): $1,800
• Total: $4,600-$6,000

How to Reduce Turnover

1. Keep good tenants (Offer lease renewal incentives)

• Rent discount: "Renew for 2 years, I'll keep rent flat"
• Small upgrade: "Renew, I'll replace bathroom vanity"

2. Screen carefully upfront

• Good tenant = stays 3-5 years
• Bad tenant = leaves after 1 year (or you evict)

3. Respond to maintenance quickly

• Tenants leave when maintenance is ignored

4. Competitive rent

• Don't overprice (causes vacancy)
• Don't underprice (leaves money on table)

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Common Military Landlord Mistakes

❌ Mistake #1: Keeping House That Can't Cash Flow as Rental

Reality:

• Buy $400,000 house (great while you live there)
• PCS, try to rent
• Mortgage: $2,500/month
• Market rent: $2,200/month
• Lose $300/month + maintenance = -$500-$800/month

Fix: Sell if rent < mortgage + expenses. Don't keep bad rental for sentimental reasons.

❌ Mistake #2: Not Screening Tenants Thoroughly

Reality:

• First person who applies, you rent to them (you want it rented fast)
• They pay late, cause damage, leave after 6 months
• Cost: $5,000+ in repairs + lost rent

Fix: Screen thoroughly. Wait for RIGHT tenant, not FIRST tenant.

❌ Mistake #3: Trying to DIY Manage from Overseas

Reality:

• You're in Germany, rental in Texas
• Tenant: "AC broke, it's 100°F"
• You: (sleeping, time zone difference)
• Tenant: (suffers for 24 hours, withholds rent, leaves)

Fix: Hire property manager if you're OCONUS or deploy frequently.

❌ Mistake #4: Not Budgeting for Maintenance

Reality:

• Cash flow: $200/month (looks good!)
• AC dies: $5,000 repair
• You have no reserve
• Must sell property or take loan

Fix: Save 10% of rent monthly for maintenance. Build $5K-$10K reserve.

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Action Steps

Before You PCS:

1. ✅ Decide: Keep as rental or sell?
2. ✅ Calculate cash flow (use 50% rule)
3. ✅ If keeping: Hire property manager OR build maintenance network
4. ✅ Get rent analysis (what can you charge?)

60 Days Before PCS:

1. ✅ Interview 3 property managers (if hiring)
2. ✅ Line up contractors (if DIY)
3. ✅ Get property inspection ($200-$400)
4. ✅ Fix any issues before listing

30 Days Before PCS:

1. ✅ List property for rent
2. ✅ Screen applicants
3. ✅ Sign lease with tenant
4. ✅ Transfer utilities to tenant
5. ✅ Give tenant/PM keys

After PCS:

1. ✅ Monitor monthly statements (if PM)
2. ✅ Respond to maintenance requests <24 hours (if DIY)
3. ✅ Build emergency fund (10% rent monthly)
4. ✅ Review annually: Keep or sell?

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Related Guides

• Real Estate Investing for Military
• VA Loan for Investment Properties
• Property Taxes for Military Landlords

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Remember: Long-distance landlording IS manageable with right systems. Hire property manager if OCONUS or deploy frequently. If DIY, build reliable contractor network BEFORE you PCS. Screen tenants ruthlessly, budget for maintenance, and ensure positive cash flow ($100+/month minimum). Done right, military landlording builds generational wealth.