Veterans may get income from rental properties and still receive total disability based on individual unemployability (TDIU). However, you must consider whether your rental income is passive or earned.
If you own a property, rent it out, and receive a monthly rent check from a tenant, but do not actively manage and maintain it, the VA would consider this passive rental income.
If you own a property, receive monthly rent checks, and are the person the tenant calls to make a repair, the VA would consider this earned rental income. Another example of earned rental income would be if you go out to the property routinely to perform yardwork and basic maintenance.
To receive TDIU benefits from the VA, you must confirm you are unable to keep “substantially gainful employment” due to your service-connected conditions. Therefore, your earned income should not exceed the poverty threshold.
