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The thought of striking out into the world and finding a rental home can be as exhilarating as it is overwhelming. And if we’re being honest, the prospect can be a wee bit terrifying as you work to figure out all the ins and outs of what to do to land your first rental, especially navigating factors pertaining to military members and families.
Are there any secrets to success in finding your first rental, particularly as a military family? The answer is an enthusiastic yes! The secret formula is actually pretty simple once you know where to start.
1. Getting started: what are my housing options?
As you think of your first rental, you’ll want to consider your housing options, potential move-in fees, deposits, and available moving allowances.
Four Housing Options for Military:
When you’re a new renter, you have four primary options when searching for the right rental for you and your family.
- Live on base in military privatized housing.
- Live off base in a rental managed by a private landlord (such as another military family renting out their home).
- Live off base in a rental managed by a property management firm or realty company.
- Live off base in an apartment complex that best fits your needs.
The question is often asked, “Should I live on base or off?” There are several pros and cons to living on base as a renter.
Pros of Living on Base
- Living on base is a smart option if you’re a new renter with zero or bad credit.
- The daily commute will likely be much more pleasant, with short drive times to work, plus the added time-saver of not worrying about backed-up traffic at the gates.
- Transitions into and out of the installation may be smoother because base housing company's primary customers are military families.
Cons of Living on Base
- There’s likely a significant waitlist for on-base housing.
- Like property management firms, some housing companies are better run than others.
- Some families crave the separation between work and home in an environment where they will have a blend of neighbors versus every neighbor attached to the military.
2. How do I figure out how much rent I can afford?
Each duty location is assigned a housing allowance or BAH rate based on rank, dependents, and locale. The Defense Travel Management Office publishes these rates; you’ll only need the zip code of your installation to determine yours. A general rule of thumb is limit your housing expenses to no more than 30% of your monthly income.
TIP: Alaska and Hawaii duty stations are also entitled to an additional housing stipend, via an "overseas" Cost of Living Allowances (COLA), as these locales incur a higher cost of living for goods and services, to include housing.
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Incidentals and Utilities
Remember, BAH is the maximum housing allowance you will receive. Don’t forget to budget and include incidentals and utilities, such as gas and electricity bills, laundry (if coin-op), lawn care, snow removal, or any parking fees you’ll need to pay outside of your rent.
Save well in advance of your PCS date for move-in fees, security and pet deposits, and utility start-up costs. In addition to rent, new renters should budget for several other expenses, such as the equivalent of two to three months' rent due upon signing.
TIP: You may be entitled to a Dislocation Allowance (DLA), which partially reimburses a service member for moving expenses. DLA is a flat rate, and the amount paid will vary depending on the circumstances of the move (such as whether you moved yourself, in a ‘do-it-yourself’ move, or a DITY, personally procured move). You can apply for DLA before your move to help offset the moving costs.
3. Can I rent a home with bad credit?
A landlord looks for several things in a potential tenant, and an applicant’s credit score is one of the deciding factors.
If you’re contemplating your first rental, you’ll want to know and understand what is in your credit report and what your credit (or FICO) score is, as virtually every rental application will include running your credit and consumer reports.
What makes up a credit score? And who determines my score?
A FICO score consists of five areas: payment history, current level of indebtedness, types of credit used, length of credit history, and new accounts. There are three primary credit reporting agencies: Equifax, Experian, and TransUnion. Although calculations vary slightly between the three bureaus, each will produce a consumer report with a FICO score denoted.
Depending on the reporting agency, FICO scores range from 300 to 850, but generally, credit scores are reported as Very Poor/Bad, Bad, Fair, Good, and Excellent. Most landlords have a minimum score or target range for applicants. You’re entitled to know that screening criteria as an applicant.
Where does my score rank?
According to Experian (one of the primary credit reporting agencies),
“Most consumers have credit scores that fall between 600 and 750. In 2020, the average FICO score in the United States reached 710.”
If your credit score isn’t where you’d like it to be or below the given rental application’s minimum acceptable category, there are a couple of strategies you can take:
- Offer to add a co-signer to your lease or rental agreement.
- Offer a larger security deposit. Before you plunk down extra cash, check state laws because many states have legislated the maximum amount a landlord or property manager can collect and hold as a deposit.
If you know a negative credit history is going to pop up when you submit a screening questionnaire, you have two choices: keep mum and wait for the landlord to discover it, or come clean early and offer an explanation for a less-than-stellar report.
Depending on circumstances, such as a divorce that destroyed your credit, landlords can choose to work with you. However, upfront honesty is usually the best policy in these situations.
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4. Where do I search to find a rental home or apartment?
Looking for a new home can be stressful, especially if you’re beginning your search a thousand miles away before your PCS to the area. But there are a number of strategies to help narrow your focus and find the perfect rental home.
Virtually explore your new duty station and the surrounding area.
Use military-tailored resources, such as Military Town Advisor, your gaining installation’s housing office, and MilitaryByOwner’s home search feature. Once you’ve narrowed your search to a specific area, research local school district ratings and any crime activity there.
Gauge priorities and choose a home type.
Take the time to assess what priorities will be key to your family’s lifestyle. Considerations such as commute times, proximity to shopping and city centers or schools, or quick access to running trails and nature can be deciding factors in finding the right home.
Hire a real estate professional.
Combing through rental listings and comparing listings against your priorities is time-consuming. If you’re short on time or energy, consider hiring a real estate professional to assist you.
Although real estate brokers and property managers sometimes charge a fee for this service, they will often have the best pulse on homes becoming available in various areas and neighborhoods, which can significantly streamline your search.
5. Ask these key questions before signing a lease.
Whether you rent from a private landlord, an on-base housing provider, or a property management firm, there are several key questions to ask before signing your lease.
Maintenance Policies
Poor maintenance policies are one of the top complaints from renters. Ask what procedures are in place to report work orders.
Is there an internal maintenance team, or will a contractor need to be identified and called? Is there an emergency maintenance number, and is it 24/7?
General Policies
Can you read a resident’s handbook before signing your lease? Property management companies with well-defined resident policies tend to be highly responsive landlords when issues arise.
Lease Terms, Penalties, and Security Deposits
How long is the lease term? Once the original lease term ends, can you extend it? If so, in what increments, i.e., monthly, 6 months, or another year?
How much notice is required to vacate the unit? Is the security deposit refundable, and if so, under what terms? When is rent due, how will you pay it, and what penalties are incurred for late fees?
Utilities and Rent Inclusions
What is included in the rent, specifically utilities and parking? Are you expected to provide lawn and snow care? Or is this provided by the landlord, and if so, is there a fee? Ensure all inclusions and exclusions are in writing on your lease.
Pet Policies
What is the pet policy? Is there a number, size, or breed limit, and what is the deposit for each?
Is there any construction, renovation, or demolition planned over your lease term?
Maintenance and improvements are great—until they’re not. While there may not be a legal requirement to inform residents of planned construction, you would certainly appreciate knowing, as it could affect the peace and enjoyment of your rental experience in that location.
Guest Policies
The support of extended family can be crucial for military families during times of transition, such as the arrival of a new baby or other life milestones. Ensure your rental will allow guests for extended stays.
6. Consider details when it comes to military clauses and cohabitating.
Military life can be a whirlwind, particularly in the romance department. If you are ready for your first rental but not yet ready for marriage, there are a few considerations to keep in mind.
Carefully decide which parties should sign the lease. The Servicemembers Civil Relief Act and Military Clause (SCRA) are nuanced and offer protections to service members but don’t necessarily cover non-military individuals.
A military member will only receive “BAH with Dependents” rate if the member has provided proof of marriage to the military’s personnel systems or Defense Enrollment Eligibility Reporting System (DEERS). Additionally, PCS and moving expenses (including moving a non-military affiliated individual’s personal belongings) are authorized only for the service member.
Related: Cohabiting Can Ruin Your Military Relationship
7. Moving day is here! Don't forget to complete a move-in report.
Before you unpack your first box, take time to gauge the current condition of your new rental home and denote any repairs needed or damages present, no matter how small. Most companies offer a standard walk-through worksheet to be completed and returned within 15 days. Consider submitting pictures or video of any damages as supplemental documentation.
- Flooring and baseboards. Carefully examine the condition of the flooring and carpet, noting any stains, pulls, or scratches. Also, note the condition of the baseboards.
- Walls and paint. Note any scratches or dents, the condition of the walls, and any stains.
- Appliances and ceiling fans. The appliances provided should be in working order. If they aren’t, immediately place a work order for repair or replacement. Ensure ceiling fans are securely mounted, in good order, and clean.
- Windows, blinds, and doors. Make sure windows and doors open and close smoothly, report any torn screens, and request replacement. If blinds are provided, report any that are dirty or broken.
- Plumbing, toilets, and tubs. Check that there are no leaks, faucets are in good order, and tubs and toilets are caulked. Report any water leaks or if a toilet constantly runs immediately.
- Exterior and landscaping. Note the condition of grass, shrubbery, and trees. Is the property overgrown or in need of an initial mow? If so, document and report it.
TIP: Don’t let the excitement of move-in day overshadow this final bit of due diligence. Taking the time to painstakingly annotate what damages were present upon moving in could save you hundreds of dollars when moving out if any questions arise as to what damages were already in the home before your occupancy.
Welcome to this new, exciting chapter of your life!
Whether you’re a first-time, multi-time, or new tenant or landlord, MilitaryByOwner has your back. Our real estate experts provide thorough and sound information and guidance every step of the way to help with all of your housing questions and needs.
By Kristi Adams
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