Renting to the military community means, you are renting to an all-volunteer force serving to protect our way of life in jobs that not many of us are willing to do. But, service members are more than a mobile fighting force; they are leaders, humanitarians and your fellow American families.
Renting to military tenants may be one of the best business decisions a landlord or property owner can make.
Here are our top 5 reasons why renting to a military family can be a tremendous financial success for all landlords and property managers.
5 Reasons Why You Should Be Renting To Military Members
1. You Own a Rental in a Less Populated Area
Managing rental properties can be a challenge, especially if the community your rental is in doesn’t have a high volume of likely renters, such as a college town or major shopping center. Fortunately, many military installations are located in these rural or less populated areas and transfers in thousands of military families in need of off-base housing for a 2-4 year time period.
2. Military Members Receive a Monthly Housing Allowance
Active military members receive a monthly Basic Allowance for Housing (BAH) that will cover roughly 95% of the cost of living in an off base house. So unless they transition out of the service or are discharged they have a guaranteed source of income intended to cover their rent payment.
3. They Make Good Tenants
You’re a professional. You know that choosing good tenants is a top priority for successful landlords and has requirements to make a data-driven choice when renting to military members.
An ideal tenant has:
- A steady income and security deposit to cover potential damage
- Good references from previous landlords and a record of following rental policies
- A favorable credit report with a history of on-time payments
- Polite and respectful communication skills
And when renting to military members, a quality tenant may be good for your business even after they leave. Outgoing military members giving you an excellent reference to incoming military families in this niche market is priceless!
Did you know that military families move every two or three years on average, and most of the DOD’s 4 million personnel and their family members live off base?
Pro Tip: Be sure to check out our latest blog 5 Tips For Better iPhone Real Estate Photos to create your rental listing.
4. You Love Using Data for Making Decisions
You’re in business to make money, and you do the work to look for great tenants. Tenant screening is about building trust through impartial fact-finding.The military makes the screening process a bit easier. Any federal employee, including the DoD, has passed a background check, and income verification plus a housing allowance is provided by the federal government.
Set Income Requirements
A rent-to-income ratio calculation can help eliminate unqualified applicants before a landlord goes through a comprehensive screening process.
The industry follows a 30 percent standard: rent doesn’t equal more than 30 percent of the renter’s income. For example, $1,500 rent should be a good fit for a tenant grossing at least $4,500 a month.
Since the military pays the basic housing allowance to service members to cover rent in the local community, a comparison of their BAH to monthly rent will identify those who are potentially overextended as renters.
Will this tenant be reliable in paying rent on time? Every property owner and landlord wants to feel confident about their renters’ ability to pay. Service members have a steady income from the federal government.
Ensuring that you can trust your tenants is essential. Background checks help property owners steer clear of problem renters. Landlords can usually pass this cost onto the renters interested in applying.
All federal employees go through a basic background check to make sure you’re reliable, trustworthy, and suitable for the job. Many service members pass the more rigorous background check required to gain security clearances.
With a credit report, you’ll get the insight you need from applicants’ payment history to choose tenants likely to allow you to earn rental income with less risk. Ensure you don’t let your applicants provide “a copy” of their report to guarantee accuracy.
5. You’re Supporting Those Who are Protecting You
“No man is entitled to the blessings of freedom unless he be vigilant in its preservation.” — Gen. Douglas MacArthur
Be a proud American. Never forget the significant personal risk and sacrifice of service members in protecting and defending our freedoms. Every American can play a role in supporting military families – not just their friends and neighbors. Landlords, employers, teachers, community leaders, government leaders, and health care professionals can help support military families in unique ways and positively impact the community.
Military families live a unique lifestyle to serve alongside their service members. And one of the things milfams learn to master is professional moves, which can be a massive benefit to landlords!
Are you now wondering, “What can I do to rent my home to military families?” Don’t just take our word on the benefits, hear it from someone who has grown their business from it!
“We chose to work with AHRN to help those who serve, or have served, in our country’s armed forces. So far, it’s been great! We’ve been able to target the military audience directly through AHRN, and supporting service members and their families through our own work has proven very successful for our business. If you’re considering AHRN, do it – it’s worth your while,” Josh Roy, NextHome Pikes Peak Realty Broker/Owner
U.S. Army Fort Carson – Colorado Springs, Colorado
On board to rent to the military community but wondering what happens if they suddenly are deployed and have to break their lease? Ease your concerns in our latest blog here and learn about Servicemembers Civil Relief Act (SCRA) laws and how to protect yourself.
Get serious about occupying your listings or growing your military marketing program and rent to military personnel! Become an AHRN Certified Military Agent to receive real-time inbound leads from our military audience plus real estate agent marketing resources. Learn more at AHRN.com.