When your house is more like a home, and you’ve come to love your neighborhood, local school district, and the other suburban comforts that Northern Virginia has to offer, receiving Permanent Change of Station (PCS) orders can bring a whirlwind of emotions.
Unlike shorter, temporary duty assignments, PCS orders are…well, more permanent. It is not uncommon for these assignments to last at least 2-4 years, meaning that you will have to leave your home and your life in Northern Virginia behind.
While moving around to different parts of the country and even the world might be the adventure of a lifetime and one of the main reasons why you joined the military in the first place, it can leave you feeling equal parts excited and nervous.
On top of stressors like wondering how your family will adjust to a new place, you will also have to figure out what you are going to do with your old one.
You don’t want to just leave it vacant. Not only will that attract crime and vandalism to the area and open your property up to costly maintenance issues over time, but it will also cause you to pay two mortgage payments.
However, selling your property is not necessarily the best option, either. With rising economic uncertainty, many people who serve in the military panic and sell their homes after receiving PCS orders, saving themselves from paying two mortgages, but severely limiting their return on investment.
So what should you do with your home after you receive PCS orders?
If you want the opportunity to maintain your property, prevent yourself from losing out on your investment potential, and make a profit each month, you should hire a property management company to rent out your home.
Here are four main reasons why renting out your property is the best choice you can make after you get a Permanent Change of Station Order:
Timing the market
Renting out your property is a great way to stay flexible and wait for the right time to sell your home.
Oftentimes, homeowners who have to move for work get nervous about the potential of paying more than one mortgage payment while they are trying to sell their home, so they panic and sell their home as soon as possible, regardless of the current market.
This can lead to them selling their home for less than it is worth in a buyer’s market, causing them to potentially lose thousands of dollars on their investment. The market is going to turn, and you will be upset with yourself if you sell your home for less than it could be worth in the few years it will take to become a seller’s market again.
That’s why renting out your home using a property management company is the perfect solution. You will keep mortgage payments from breaking the bank by receiving rental payments each month from your tenants, and you will prevent yourself from losing money on your home by waiting for the right time and the right market before you eventually sell.
If you feel a time crunch to sell your property because you will be stationed overseas or across the country, you could inadvertently risk losing a lot of potential income and the opportunity to build long-term wealth. By renting out your property, you allow yourself the time to wait until it is the perfect time to sell your home.
Best of all, your property management company will take care of finding trustworthy tenants and collecting rent for you, so you don’t have to be afraid about how holding on to your property in Northern Virginia will influence your wallet.
Rental rates are increasing
Another key reason why you should rent out your home in Northern Virginia even when you’re moving away for years is that rental rates are rising in Northern Virginia. As growing numbers of people are flocking to suburban areas with affordable housing and close commutes to major metropolitan cities like Washington, D.C., cities like Ashburn, McLean, Arlington, Gainesville, Fairfax, and other suburbs in Northern Virginia are seeing an influx in residents.
With countless renters looking for homes in Northern Virginia and a limited number of homes available for people to rent, rental rates are skyrocketing in the area.
The rent estimate for a one-bedroom rental property in Arlington increased from $2,250 to $2,320 over the past year. The average rent in Ashburn increased by 13% over the same period of time while McLean saw a 3% increase in rental prices. Reports show that Gainesville has experienced a 15% increase in rental rates since 2020.
As rental rates continue to increase, and your mortgage payment and associated homeowner fees stay roughly the same, you will boost your cash flow if you rent out your home.
If you charge $2,200 in rent each month, but your mortgage payment, HOA fees, and maintenance costs only add up to $1,700 per month, you will be pocketing $500 every single month in profit, especially if you work with a property management company that offers guaranteed rent.
Now imagine that each year you can charge more in rent. Your profits will increase year after year, and you will still be building equity in your home. That’s an opportunity you don’t want to miss.
Rental rates are on the rise, and this trend is expected to continue for the next several years. Don’t miss out on a source of steady, passive income each month by panic selling your home if you receive a Permanent Change of Station order.
Your rent can be guaranteed
At first glance, it might seem incredibly risky for you to rent out your Northern Virginia property while you are stationed in a different state or country.
What if your tenants suddenly decide to stop paying rent? What if they pay their rent late? Now you’re stuck with a mortgage that you will have trouble paying, and you have to worry about paying eviction costs down the line.
Fortunately, when you work with a property management company, this does not have to be the case.
A top property management company will offer guaranteed rent. This is exactly what it sounds like. It means that they will make sure you receive all rent money owed if a tenant misses a rent payment so that you don’t have to worry about making ends meet.
Now, you’ll have rent money going into your pocket month after month regardless of the circumstances.
Furthermore, if you work with a property management company with an eviction guarantee, you can also rest easy knowing that they will handle any eviction costs and eviction-related issues that may arise.
Knowing that you will be able to have a guaranteed income each month while also being able to cash in on your property’s value when you are eventually ready to sell in the future is a key reason why you should hold on to your home after receiving a Permanent Change of Station order.
Long term wealth
Owning real estate is one of the most effective ways to create long-term wealth. In a 2018 Forbes report, experts claimed that real estate “builds wealth more consistently than other asset classes.”
This is largely due to property appreciation. If you own a $300,000 home, but it appreciates to $330,000 by the time you’re ready to sell it, you will have made a 10% return on your investment if you paid with your own money (and a 100% return on investment if you received a loan and put down a $30,000 down payment).
Forecasting models predict that owning real estate will continue to be profitable for years to come.
According to Fortune, even the most conservative predictions still estimate an appreciation rate of at least 2.7% for the next year with many real estate firms estimating 4% or more.
If you own a property in Northern Virginia, where property values are steadily increasing you could be missing out on a significant opportunity to make money if you sell your property before it has the chance to appreciate.
Northern Virginia is a short commute from Washington, D.C., home to some of the top school districts in the nation, and rich in culture and history. As such, homes in Northern Virginia suburbs are going to continue to increase in value in the coming years.
That’s why rather than selling your property when you receive PCS orders, you should rent out your property instead.
Say you bought your property for $400,000 5 years ago, and it appraises for $500,000 now, what will it appraise for in 3 or 5 years down the road? If you were to sell your property now, you would lose any appreciable gains However, if you were to rent it out for 5 years and then sell it, you would receive a handsome return on investment plus all of the money you gained from monthly rent payments over the years adn teh tax advantaes of being a landlord!
This is better than average market returns and practically any other investment that you could make right now.
If you want an investment that will yield great results in the long term, renting out your Northern Virginia home while you are stationed out of the state or out of the country is one of your best options.
The rental process is simple!
Well, it can be if you’re working with RentSimple. When you hire RentSimple, you can spend less time worrying about your property in Northern Virginia and more time focusing on adjusting to life in your new home.
RentSimple handles every aspect of the rental process:
- We hire professionals to take high-quality photos and videos of your property and market your property on over 50 websites.
- We use a thorough screening process to check out prospective tenants (and even their pets if you’ll allow them!) until we find tenants that will not only pass background and credit checks but also be the right fit for your home.
- We focus on rental properties in Northern Virginia, so we know exactly how much rent to charge your tenants.
- We draw up the lease and collect rent payments each month, offering you guaranteed rent if your tenant ever happens to miss a payment.
- We provide 24/7 property maintenance and service for your tenant so that they are 100% satisfied with their renting experience.
- We offer an eviction-free guarantee and a pet damage guarantee to help you save money and maintain the value of your property.
From our unparalleled service and expertise to our straightforward pricing and stress-relieving guarantees, it’s no surprise that we are considered the top property management company in Northern Virginia. Don’t believe us? Just take a look at our 5 star Google Rating and our stellar reviews.
If you receive a PCS order, don’t freak out and rush to sell your home. Work with us at RentSimple and allow us to help you achieve both short and long-term wealth by renting out your property.
Because we take care of everything for you, it won’t matter if you’re stationed halfway across the world. We will care for your property and allow you to collect money in rent while you continue to watch your property appreciate over time.