If you're preparing for a Permanent Change of Station (PCS) from Offutt Air Force Base, one important decision is what to do with your current home.
Should you sell it before leaving the Omaha area, or keep it and rent it out?
There isn't one answer that works for every service member. Your decision depends on your financial situation, how long you expect to be away, your available home equity, rental demand, and whether you're comfortable managing a property from another location.
When PCSing out of Offutt, it's worth comparing both options before making a decision. Selling may provide financial flexibility for your next assignment, while renting could allow you to retain ownership of your Omaha-area property.
Here's what to consider.
Option One: Sell Your Omaha-Area Home Before Your PCS
Selling may make sense if you want a clean financial transition before reporting to your next duty station.
Once the transaction closes, you can use your net proceeds according to your financial plans and avoid managing a property from a distance.
Potential advantages include:
Access to your home's equity after closing expenses and mortgage payoff
No ongoing landlord responsibilities
No need to coordinate repairs or tenant issues from another state
Fewer property-related expenses after leaving
More flexibility when purchasing or renting at your next duty station
Selling may be particularly worth considering if you need the proceeds to support your next home purchase or if you do not want the responsibilities of long-distance property ownership.
However, remember to account for mortgage payoff, selling expenses, repairs, preparation costs, and any applicable taxes.
Option Two: Keep Your Home and Rent It Out
Keeping your Omaha-area home may be worth considering if the property can generate sustainable rental income and you are comfortable being a landlord.
For some homeowners, renting offers an opportunity to retain real estate in the Omaha market while serving elsewhere.
Potential advantages include:
Keeping ownership of your property
Potential rental income
Maintaining a long-term real estate asset
Potential future appreciation, although this is never guaranteed
The possibility of returning to the area later
But rental income is not the same as profit.
You need to account for the full cost of owning and maintaining the property.
Calculate the True Cost of Keeping the Property
Before deciding to rent, estimate what it would cost to keep your home for at least the period you expect to be away.
Include:
Mortgage principal and interest
Property taxes
Homeowners or landlord insurance
HOA fees, if applicable
Property management fees
Routine maintenance
Emergency repairs
Vacancy periods
Utilities you may remain responsible for
Potential legal and accounting expenses
For example, a property that rents for more than its mortgage payment may still produce a negative monthly cash flow after other expenses are included.
Build your estimate using realistic rental figures rather than assuming the property will always have a tenant.
Research Rental Demand Near Offutt AFB
Location can influence your rental strategy.
Some homeowners may want to research rental demand in Bellevue, Papillion, La Vista, and other communities within commuting distance of Offutt.
However, do not assume that every property in these areas will attract the same rental price or tenant interest.
Compare properties with similar:
Bedrooms and bathrooms
Square footage
Property condition
Parking and garage space
Location
Lease terms
Included amenities
The Offutt Air Force Base Housing Management Office also provides housing information and assistance for service members.
Offutt AFB Housing Information
Consider Hiring a Property Manager
If you decide to rent your property while stationed elsewhere, determine who will handle the day-to-day responsibilities.
A property manager may help with:
Marketing the rental
Screening prospective tenants
Preparing and managing leases
Collecting rent
Coordinating maintenance
Responding to tenant concerns
Conducting property inspections
Property management comes with a cost, so include the fee in your rental calculations.
Also, ask about the management agreement, repair authorization limits, tenant placement fees, and how emergencies are handled.
If you plan to manage the property yourself, consider whether you will have enough time and reliable local support while serving at another installation.
Review Your Mortgage and Insurance
Before converting your primary residence into a rental, review your mortgage documents and speak with your lender or loan servicer if you have questions about occupancy requirements.
You should also contact your insurance provider.
A standard homeowners insurance policy may not provide the appropriate coverage once the property becomes a rental.
Ask about landlord insurance, liability protection, and coverage for potential property damage or loss of rental income.
Do not assume your existing policy automatically covers a tenant-occupied home.
Understand the Tax Considerations
Renting out a property can create tax responsibilities.
Rental income is generally reportable, and certain expenses may be deductible under applicable IRS rules.
You may also need to consider depreciation, recordkeeping, and the tax implications of eventually selling a property that was previously your primary residence.
If you sell after renting the home, the rules surrounding the primary residence capital gains exclusion may become important.
Because tax treatment depends on your circumstances, speak with a qualified tax professional before making a decision.
IRS Publication 527: Residential Rental Property
Think About Your Next Assignment
Your expected time away can influence whether keeping the property makes sense.
Consider:
How long you expect to be stationed elsewhere
Whether you may return to the Omaha area
Whether you expect another PCS within a few years
Whether you will purchase a home at your next duty station
Whether carrying two housing obligations is financially manageable
Whether you have someone reliable to oversee the property
A shorter assignment may make a different strategy appropriate than a long-term move with no expected return to Nebraska.
Compare Your Expected Net Proceeds With Rental Cash Flow
Before deciding, compare two realistic financial scenarios.
If you sell:
Estimate your expected selling price, mortgage payoff, closing expenses, preparation costs, and potential net proceeds.
If you rent:
Estimate monthly rent, operating expenses, vacancy allowance, maintenance reserves, management fees, and remaining mortgage costs.
This comparison can help you understand what you are gaining or giving up with each option.
Remember that selling provides a one-time financial result, while renting involves ongoing income, expenses, responsibilities, and risks.
When Selling May Make More Sense
Selling may be worth considering if:
You need your home equity for your next move.
You do not want to manage a rental from a distance.
The expected rental income does not comfortably cover expenses.
You do not plan to return to Omaha.
You want to reduce financial obligations during your next assignment.
When Renting May Make More Sense
Keeping the property may be worth exploring if:
You have enough financial reserves for vacancies and repairs.
The rental income supports the property's ongoing expenses.
You have reliable property management.
You are comfortable with the responsibilities of being a landlord.
You have a long-term ownership strategy.
Neither option guarantees a better financial outcome. The decision should be based on your numbers and personal circumstances.
Final Thoughts
PCSing out of Offutt comes with plenty of moving parts, and deciding what to do with your Omaha-area home is one of the biggest.
Selling may give you a fresh start and access to your equity. Renting may allow you to retain an investment property, but it also comes with ongoing responsibilities and financial risks.
Before making your decision, compare the costs, understand your options, and build a plan around your next assignment.
Sarah and Bradley are both Army veterans, and The Pierce Group understands that military moves often come with unique real estate decisions. If you're preparing to PCS from Offutt, we can help you evaluate your home's market position and explore the selling side of your options.
Disclaimer:
This article is for general informational purposes and is not legal, tax, financial, insurance, or lending advice. Rental property ownership and tax treatment depend on individual circumstances. Consult qualified professionals before making decisions about your property.
