Should You Rent or Sell Your Home When You PCS?
Receiving Permanent Change of Station (PCS) orders comes with many decisions, and one of the biggest is deciding whether to rent or sell your home. Both options have their advantages and challenges, so here’s how to determine the best choice for your situation.
Consider Your Financial Goals
- Selling can provide immediate cash that you can use for your next home or other investments. If your home has appreciated in value and market conditions are strong, selling might be the best way to maximize your return.
- Renting can generate passive income and help you build long-term wealth, especially if your mortgage is low and rental demand is high. However, managing a rental property from afar can come with challenges.
Evaluate the Local Real Estate Market
- If home values are rising and properties are selling quickly, it may be a good time to sell and take advantage of market conditions.
- If the rental market is strong and you can charge rent that covers your mortgage, renting may be a smart investment.
Are You Ready to Be a Landlord?
Renting out your home means taking on the responsibilities of a landlord, such as:
Finding and screening tenants
Handling maintenance and repairs
Managing lease agreements
If you’re not comfortable managing the property yourself, hiring a property management company can help—but it will come at a cost.
Tax Implications
Selling may allow you to benefit from the capital gains tax exemption if you’ve lived in the home for at least two of the last five years. On the other hand, renting can provide tax benefits such as deducting property expenses and depreciation.
Long-Term Plans
Consider whether you plan to return to the area. If you might move back, renting allows you to keep a home in a familiar location. If not, selling might be the better option to avoid dealing with an out-of-state property.
Final Thoughts
The decision to rent or sell depends on your financial situation, market conditions, and personal preferences. If you’re unsure, consulting a real estate expert can help you make the best decision for your PCS move.
Need guidance on selling or renting your home before your PCS? Let’s chat! 
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