When PCS orders arrive, work in order: decide whether to keep, rent or sell; check your loan and insurance; set up management and signing authority; then lease the home and close out the tax items. No law sets how many weeks each step takes, but several rules attach to specific dates, such as the January 1 lien date for California's homeowners' exemption and the up-to-10-year suspension of the home sale exclusion's 5-year period under IRC § 121(d)(9).

The short version

  • Decide keep, rent or sell first. Every later step depends on it.
  • If the home has a VA loan, the occupancy certification was about your intent and move-in timing at closing. The statute and VA's handbook do not set a minimum number of months you must live there before renting.
  • Tell your insurer the home will be rented. The NAIC says a rented house becomes a place of business, which changes the insurance requirements.
  • End the homeowners' exemption once the home is no longer your principal residence. December 10 is the last day to do so without penalty.
  • Track your move-out date. It drives the home sale exclusion, and military owners can suspend the 5-year period while on qualified official extended duty.

The PCS calendar

Treat these stages as a sequence, not a schedule; how long each takes depends on your orders and the market.

StageWhat to doRule or source behind it
Orders receivedNote your report date and whether you expect to return.Your orders; see PCS orders: keep and rent or sell
DecidingPrice rent against your costs. Check the home sale exclusion timeline for when your window closes.IRC § 121(a), § 121(d)(9)
VA loan checkReview what you certified at closing.38 U.S.C. § 3704(c)
HOA checkIf there is an association, confirm rental rules and give it the required information before renting.Civil Code §§ 4740, 4741
InsuranceCall your insurer about a landlord or dwelling policy.NAIC consumer guidance
Management and authorityChoose who runs the home. Sign a management agreement and, if needed, a power of attorney.Bus. & Prof. Code § 10131(b); 10 U.S.C. § 1044b
ListingAdvertise the home without any preference based on a protected class.Gov. Code § 12955
Lease startSign the lease, collect a deposit within the cap, take move-in photos.Civil Code § 1950.5
After move-outThe home is "placed in service" as a rental when it is ready and available for rent.IRS Pub 527
January 1The homeowners' exemption requires the home to be your principal residence on this lien date.BOE; county assessor
By December 10Last day to terminate the homeowners' exemption without penalty.BOE
Tax seasonReport rent on Schedule E. If you are now a California nonresident, California still taxes the rent.Pub 527; FTB Pub 1032

Decision points along the way

Keep, rent or sell

The biggest tax rule in this decision is the home sale exclusion. Normally you can exclude up to $250,000 of gain, or $500,000 for joint filers who meet the conditions, if you owned and used the home as your principal residence for at least 2 of the 5 years ending on the sale date (IRC § 121). Under § 121(d)(9), you can elect to suspend that 5-year period while you or your spouse are on qualified official extended duty: a duty station at least 50 miles from the home, or living in government quarters under government orders, on orders for more than 90 days or for an indefinite period. The suspension cannot extend the 5-year period by more than 10 years. Gain equal to depreciation allowed or allowable on the rental cannot be excluded (§ 121(d)(6)).

The VA loan

Federal law asks you to certify that you intend to occupy the home, and VA's Lenders Handbook defines a "reasonable time" to move in as within 60 days after closing. Those rules look at intent and timing at closing. The statute and handbook do not set a minimum number of months you must keep living there before you rent. Never certify an intent you do not have. The full rules are on VA loan occupancy and renting out your home.

The 2025 VA Partial Claim Program for borrowers in default (Pub. L. 119-31) is limited to a loan "regarding the primary residence of the borrower," so a rented home may not qualify. Ask your servicer.

Buying again at your next station? Read buying again with a VA loan.

Insurance

The National Association of Insurance Commissioners says a house that becomes a rental "has gone from being a residence to a place of business," which changes the insurance requirements. A landlord policy, sometimes called a dwelling fire policy, can cover the house, your possessions left for tenants, lost rent if the home becomes uninhabitable, and some liability. Tenant possessions are not covered by a landlord policy. Tell your insurer if the home will sit empty before the lease starts.

Who runs the home and who signs

Managing a rental for someone else for pay requires a California real estate license, held by a broker or a salesperson working under one (Bus. & Prof. Code § 10131(b)), so check the license of anyone you hire. A management agreement and a power of attorney are different documents. If someone will sign a deed, refinance or sale papers for you, read power of attorney for military homeowners and talk to your legal assistance office before you leave.

Leasing the home

  1. Check HOA rules. An association may not cap rentals at less than 25% of homes, but it may prohibit rentals of 30 days or less (Civil Code § 4741). Before renting, give the association proof of your title date and the tenant's name and contact information (§ 4740).
  2. Advertise fairly. California bars housing discrimination based on veteran or military status, source of income, familial status, disability and other protected traits, and bars discriminatory ads (Gov. Code § 12955(a), (c)). Apply the same written criteria to every applicant.
  3. List where renters look. HOMES.mil, the Defense Department's rental listing site, states that "Property Managers can list their properties at no cost," and service members can create an account and list their own rental. Sales listings are not allowed there.
  4. Set the deposit. California caps security at one month's rent for security collected on or after July 1, 2024 (Civil Code § 1950.5(c)(1)). The small-landlord exception that allows up to two months does not apply when the prospective tenant is a service member (§ 1950.5(c)(5)(B)). See the security deposit calculator.
  5. Document condition. For tenancies beginning on or after July 1, 2025, take photos immediately before or at the start of the tenancy (§ 1950.5(g)). The move-in and move-out checklist helps.

If your tenant is a service member, the federal SCRA may let them end the lease on qualifying PCS or deployment orders. See when a military tenant gets PCS orders and military tenants and the SCRA.

Taxes after you move

  • Depreciation starts when the home is ready for rent. In IRS Pub 527's example, a former home listed for rent October 1 and rented December 1 is placed in service October 1. For a converted home, the depreciation basis is the lesser of fair market value or adjusted basis on the date of conversion. See rental property depreciation.
  • California still taxes the rent. FTB Pub 1032 (2025) says California-domiciled members who leave on PCS orders become nonresidents, and after departure only California-source income is taxed by California. Income from real property in California is California-source.
  • Withholding through a manager. Rent paid to nonresident owners through a property manager is generally subject to 7% withholding (FTB Pub 1017, rev. 02/2026). See California taxes for military homeowners.
  • Property tax. Renting your home does not by itself trigger a Prop 13 reassessment, but it does end the homeowners' exemption.

For owners

  • Record your move-out date and keep copies of your orders and VA closing documents.
  • Run a rental cash flow estimate before deciding.
  • Put a repair approval limit and an emergency contact in writing before you leave.

McKee Properties manages rentals from its Coronado office; contact us with questions about your property.

Help on base

Your installation housing office can point you to off-base rental resources, and your installation legal assistance office can help with a power of attorney and other personal legal matters. Military OneSource's Legal Services Locator, or 800-342-9647, can point you to a legal office.

Frequently asked questions

How long before my report date should I start?

No law sets a lead time. Start the keep, rent or sell decision as soon as you have orders and work down the calendar above.

Do I have to live in my VA-financed home for a year before renting it?

Neither 38 U.S.C. § 3704(c) nor VA's Lenders Handbook sets a minimum number of months you must live in the home before renting. They focus on your intent to occupy and on moving in within a reasonable time after closing, which the handbook defines as 60 days. Ask your lender or legal assistance office about your own loan.

When does my homeowners' exemption end?

It applies only if the home is your principal residence on the January 1 lien date. The owner is responsible for terminating it once no longer eligible, and the Board of Equalization says December 10 is the last day to do so without penalty.

Can I list my home on HOMES.mil myself?

HOMES.mil says service members can create an account and list their own rental property, and that property manager accounts can post listings free of charge once approved. It does not allow sales listings.

This is general information, not legal or tax advice. Rules change; confirm your situation with your installation legal assistance office, a California attorney or a tax professional.

Sources

Verified October 19, 2026.

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