Owning rental property in San Diego is a
smart investment for local investors
as well as
those who might be outside of the area.
For members of the military, it’s especially wise.
Military landlords understand the unique rhythm and structure of military life. San Diego has a strong presence of active-duty military members, veterans, and their families. The market offers distinct opportunities and challenges.
As a military landlord, understanding Permanent Change of Station (PCS) moves, leveraging VA housing benefits, and respecting military tenant rights can significantly impact your success.
We’re a
San Diego property management company that works very closely with both
military rental property owners and military tenants. We are here to help military landlords navigate these key areas while maximizing rental property value in San Diego. Here are some of the strategies we keep top of mind.
Navigating PCS Moves as a Landlord
A Permanent Change of Station (PCS) is a reality of military life. Service members are often relocated with little notice, which directly impacts both military landlords and tenants. As a landlord, understanding how PCS orders work is crucial to managing turnover,
lease agreements, and expectations.
- Flexible Lease Clauses. Include a military clause in your lease agreement that allows for early termination due to PCS orders. This is not only practical but also aligns with the Servicemembers Civil Relief Act (SCRA), which protects active-duty service members.
- Plan for Turnover. Expect that tenants with military affiliations may leave mid-lease. Keep a reserve fund to handle gaps in rental income and consider month-to-month or shorter-term leases that offer both you and the tenant more flexibility.
- Market to New Arrivals. When a tenant receives PCS orders, it can create an opportunity. Use military relocation networks like AHRN.com (Automated Housing Referral Network) and local base housing offices to market your property to incoming service members.
- Partner with PCS Specialists. San Diego has a robust real estate network tailored to military families.
Collaborating with a team like ours at Onyx Property Management can help you keep your rental property occupied with reliable tenants.
Leveraging VA Loan and Housing Benefits as a Military Landlord
Many military landlords in San Diego purchased their properties using a VA loan. Understanding how to manage and leverage those benefits can make a big difference in financial planning.
For example, these loans come with owner-occupancy requirements. However, you only need to live in the home for about a year to meet this requirement. After that, you can legally convert the home into a rental property. It’s also an option to purchase a
multi-family building with your loan benefits (up to four units) and live in one of the units yourself while renting out the others.
If you receive PCS orders and want to keep your San Diego property as a rental while purchasing a new home with a VA loan at your new station, you may be eligible to use remaining entitlement for a second VA-backed loan. Check with your lender to understand how much entitlement you have left.
For owners who are thinking about refinancing, we recommend looking into the VA Interest Rate Reduction Refinance Loan (IRRRL) program to reduce your mortgage rate. This can
improve your cash flow from rental income, making the property more sustainable long term.
Understanding Military Tenant Rights in California
California has some of the most robust tenant protection laws in the country, and San Diego, with its significant military population, requires landlords to be particularly aware of how these laws intersect with federal protections for service members.
Key protections to know include:
- Servicemembers Civil Relief Act (SCRA)
The SCRA allows active-duty military members to terminate leases without penalty if they receive PCS orders or are deployed for more than 90 days. As a landlord, you are legally obligated to honor these terms and return security deposits in
compliance with California law.
- Military Anti-Discrimination Laws
Under both federal and California state law, it is illegal to discriminate against military personnel or veterans in housing. This includes refusing to rent or applying different terms due to their military status.
Active-duty tenants have added protection from eviction under the SCRA. You must obtain a court order to evict a military tenant if the rent is below a certain threshold (adjusted annually). Courts may also postpone eviction proceedings if military duty interferes with the tenant’s ability to pay rent or appear in court.
- Rent Control and Just Cause Eviction Laws
San Diego is subject to statewide rent control laws under AB 1482. If your property is over 15 years old and not exempt, you must have "just cause" to evict tenants. Military landlords must be cautious not to misapply exemptions or ignore these rules.
Building a Military-Friendly Property Management Strategy
Your background as a military member is a valuable asset when managing rental properties for fellow service members. It creates a foundation of trust and understanding that civilian landlords may lack.
Here are some of the military-friendly management practices we put into place as
San Diego property management experts:
- Clear Communication. Military tenants appreciate landlords who communicate professionally and respect chain-of-command styles. Use detailed lease agreements, provide maintenance protocols, and respond promptly to issues.
- Furnish the Unit. If you're targeting short-term military assignments or single service members, consider furnishing your rental. Many incoming military personnel are in San Diego on unaccompanied or temporary duty orders.
- Accept BAH as Income. Basic Allowance for Housing (BAH) is a predictable, government-guaranteed payment. Consider setting your rental rates competitively within local BAH ranges to attract military renters.
- Offer Online Services. Active-duty tenants often value the convenience of paying rent online and submitting maintenance requests digitally, especially if they're deployed or working irregular hours.
