Should You Rent or Sell Your Home After PCS? A Decision-Making Framework for Military Families

Should You Rent or Sell Your Home After PCS?

 A Practical, Sales-Forward Framework for Military Families

Subtitle: Navigating post-PCS housing decisions with clarity—understand the risks, weigh today’s laws, and choose the option that best protects your equity and peace of mind.

Introduction

A Permanent Change of Station (PCS) brings opportunity—but also major financial decisions. One of the most common and impactful questions military homeowners face is whether to rent out their current home or sell it before relocating.

While renting may sound appealing on the surface, today’s legal, tax, and tenant-protection environment—particularly around JBLM—has shifted the risk profile significantly. In many cases, selling provides greater certainty, flexibility, and long-term financial protection.

This guide breaks down the most important factors, incorporates current laws and guidance, and helps military families make a confident, well-informed decision.

Key Considerations Before Deciding

1. Your Financial Position (Now, Not “Eventually”)

• Equity access: Selling allows you to unlock built-up equity for your next duty station—often enabling a stronger down payment or reduced debt.
• True rental math: While rent may cover the mortgage, many owners underestimate:
  • Property management fees
  • Repairs and capital expenses
  • Vacancy periods
  • Legal compliance costs
• Market timing: In stable or appreciating markets, selling converts paper equity into real capital—without exposure to future regulatory or market shifts.

➡️ For many PCS families, liquidity and certainty outweigh speculative long-term appreciation.

2. PCS Uncertainty & Lifestyle Reality

• Unpredictable timelines: Orders change. Extensions happen. Returning “soon” often becomes years.
• Remote ownership stress: Managing a property across time zones—especially during deployments—adds risk and distraction.
• Simplicity matters: Selling removes a major operational burden during an already stressful transition.

3. Renting Near JBLM: Demand Exists—But So Do Risks

Homes near JBLM often attract renters quickly. However, high demand does not equal low risk.

Washington State—and areas surrounding JBLM in particular—are:

• Highly tenant-friendly
• Strict on landlord compliance
• Aggressively enforced

Common landlord challenges include:

• Extended eviction timelines
• Mandatory relocation assistance in some cases
• Limits on rent increases
• Strong tenant legal protections for nonpayment or hardship

Even experienced landlords can find themselves cash-flow negative despite full occupancy.

4. Tax & Legal Factors (Often Overlooked)

• Rental income taxation: Net rental income is taxable and subject to detailed reporting.
• Depreciation recapture: When you eventually sell a rental, prior depreciation can increase your tax bill.
• Capital gains exclusion advantage:
  Selling a primary residence may allow you to exclude up to:
  • $250,000 (single)
  • $500,000 (married)
    if ownership and occupancy requirements are met.

⏳ Waiting too long to sell after PCS can reduce or eliminate this benefit.

Rent vs. Sell: A Clear Comparison

Renting – Pros & Risks

Pros

• Potential rental income
• Property appreciation

Cons

• Management complexity
• Tenant-friendly laws increase exposure
• Maintenance, vacancies, legal risk
• Tax complexity and future recapture

Selling – Pros & Tradeoffs

Pros

• Immediate equity access
• Removes landlord risk entirely
• Protects capital gains exclusion
• Simplifies PCS transition

Cons

• Loss of future appreciation
• Selling costs
• Emotional attachment

➡️ For many military families near JBLM, selling is the lower-risk, higher-clarity option.

A Simple Decision Framework

1. Run real numbers, not optimistic projections
2. Factor in legal and tenant-law risk, not just rent demand
3. Consider your stress tolerance, not just ROI
4. Protect tax advantages while you still qualify
5. Get advice from military-experienced professionals

Practical Tips for Military Homeowners

• Use your VA loan strategically: Selling often restores flexibility for your next purchase.
• Understand local regulations: JBLM-area laws heavily favor tenants.
• Avoid accidental landlord mistakes: Compliance errors can be costly—even unintentional ones.
• Plan for the long term: What works for civilians doesn’t always work for mobile military families.

Why Renting Near Joint Base Lewis-McChord Carries More Risk Than Many Homeowners Expect

While homes near JBLM often attract strong rental demand, the financial and legal realities of the area make renting far more complex than it appears on the surface. The JBLM region is both tax-heavy and highly tenant-friendly, which can significantly impact military homeowners who become landlords after a PCS.

Tax Considerations Near JBLM
Washington State does not collect a state income tax, which means local governments rely heavily on property taxes. As a result, homeowners near JBLM often face higher and steadily increasing property tax obligations compared to many other PCS markets. These taxes continue regardless of whether a home is occupied, vacant, or experiencing tenant issues.

When a home is converted into a rental:

• Property taxes directly reduce cash flow
• Rental income is fully taxable at the federal level
• Depreciation taken while renting is subject to recapture when the home is sold
• Delaying a sale can reduce or eliminate eligibility for the capital gains exclusion

For many military families, what looks like “breaking even” on paper can result in unexpected tax exposure over time.

Tenant-Friendly Laws Increase Landlord Risk
The JBLM area also operates under strong tenant-protection laws, which can limit a landlord’s flexibility. These protections may include:

• Longer eviction timelines
• Increased compliance requirements
• Higher legal and administrative costs

Even with reliable tenants, these laws increase financial risk—especially for military families managing a property from another duty station.

Why This Often Favors Selling
When property taxes, rental income taxes, depreciation recapture, and tenant-friendly regulations are considered together, many military homeowners find that selling preserves more equity and reduces long-term risk. For PCS families seeking simplicity, liquidity, and financial certainty, selling is often the more strategic option.

Conclusion

Deciding whether to rent or sell after PCS is not just a financial choice—it’s a risk-management decision. In today’s environment, especially around JBLM, many military homeowners find that selling provides clarity, protection, and flexibility that renting no longer guarantees.

The right decision is the one that supports your mission, your family, and your financial future.

Call to Action

If you’re facing a PCS and own a home near JBLM, our Veterans Agents team specializes in helping military homeowners evaluate whether selling or renting truly makes sense today. We provide clear guidance, local insight, and full-service support—so you can move forward with confidence.

Reach out today to plan your next move strategically.