6 Common Mistakes First-Time Military Landlords Make and How to Avoid Them

Transitioning from homeowner to landlord while on active duty is a great way to keep a property in your investment portfolio (especially if you bought at a good interest rate). However, there are some very distinct mistakes we’ve seen happen with military landlords that are worth addressing.

If you read nothing else, the short version is: you must shift your mindset from “homeowner” to “investor” and trust both the process and your property manager. 

We’ve worked with many military landlords since we started our property management business. Our locations are near Eglin Air Force Base and Whiting Field, and we get a lot of airmen and sailors looking for help with their homes. We’ve seen all six of the problems listed below happen in real life. 

1. Being a “Helicopter Landlord”

Just like “helicopter parents” hover over their children, a “helicopter landlord” attempts to micromanage every detail of their rental property, even from a distance.

This often manifests as demanding an excessive number of estimates for repairs (sometimes eight or more, when one or two are really needed), or trying to conduct inspections and check-ins yourself. This constant oversight is a huge distraction for both you and the property manager you hired. 

▶ How to Avoid: Trust your property manager. You’ve hired them for their expertise and network of contractors. Once you’ve established a level of trust, let them do their job. Your property manager is there to serve you while you serve the country.

RELATED: Advantages of Having a Property Manager

2. Leaving the Home Unprepared for a Quality Tenant

Many military members simply move out and then decide to rent the property “as-is.” While any property can be rented, the question is: is it ready to be rented to a good tenant?

Not preparing the home to a high standard can deter the most responsible tenants (which are the tenants that will bring you the best long-term value). A property that shows evidence of deferred maintenance (like sloppy paint jobs) signals to a prospective tenant that they, too, can be irresponsible.

▶ How to Avoid: Perform all necessary maintenance and cleaning before listing. Show a responsible tenant that the house has been maintained responsibly, and they are more likely to treat it the same way.
RELATED: Owner’s Checklist of Rental Property Readiness Standards (Printable)
RELATED: Tips for Maintaining a Rental Property

3. Expecting Perfect Maintenance and Landscaping

This is the opposite of the previous mistake. Once the property is an investment, you must adjust your expectations for its ongoing upkeep.

Expecting a tenant to maintain the home, especially the landscaping, to the standard of a meticulous owner is unrealistic. If your grass is manicured and your flowerbeds are perfectly weeded, you will be disappointed when brown spots show up in your yard. A tenant will not maintain your property in the same way a Type-A military member will treat his or her own home.

How to Avoid: View the house as an investment, not your home. Avoid features that require high maintenance, like extensive flowerbeds or delicate bushes (like azalea bushes here in northwest Florida). Tenants generally won’t pull weeds or trim them to your standards. Make sure the property looks nice, but not so perfect that it needs constant, high-level attention.

4. Failing to Maintain Cash Reserves

Unexpected repairs are an inevitable part of property ownership. You must be financially prepared for the “when,” not the “if.”

The mistake happens when an owner assumes that rental income will always be enough to cover a major unexpected expense. If you own rental properties, air conditioners and water heaters will break at some point. A lack of cash reserves forces owners to delay repairs or choose cheap solutions…which leads to unhappy tenants who won’t renew next cycle.

Actual Example: One of our owners was so strapped for cash that when the oven broke, they rejected all the professional estimates and instead installed a portable oven, which was essentially a glorified countertop appliance. This infuriated the tenant and ultimately led to Rob Brooks Realty property management having to drop the owner because of the poor tenant treatment.

▶ How to Avoid: Keep a separate bank account with adequate cash reserves specifically for the investment property. Don’t touch this for anything other than large expenditures on the property. 

5. Having an Unrealistic Cash Flow Expectation

An investment property’s cash flow is often measured across a year, not just month-to-month.

Expecting your investment to generate positive cash flow every single month is not realistic. Turnovers, tenant vacancies, and major repairs (even with cash reserves) can easily lead to a negative cash flow month or two. This is expected and normal. 

▶ How to Avoid: Understand that the return on your investment comes not just from monthly cash flow, but from long-term appreciation and equity build-up. Having a negative month is normal and should be viewed as part of the overall real estate investment. 

6. Choosing to Sell a Property with a Low Interest Rate

This is often the single biggest financial mistake a military member makes, especially those who purchased a home between 2020-2022.

The temptation is to “cash out” by selling the house and using the equity to buy a new car, go on vacation, or deploy it into a larger home. If the owner has a low-interest mortgage (3% or lower), they are selling one of the best investments they can hold.

▶ How to Avoid: Recognize the “gold” you own in a low-interest mortgage. Other investors would love to acquire a property at that rate. Selling it is often a long-term mistake because the low-risk, high-return nature of the investment will almost certainly beat any reasonable, safe stock purchase over the years. If you have a 3% interest rate or less, it is often wise to hold onto that investment.

Do any of these mistakes resonate with your experience, or are you currently facing a dilemma about selling or renting your home? Reach out to us to ask any questions or get a free rental property analysis!