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One of the challenging points of landlord life is understanding tenants’ rights. Not only are landlords required to comply with federal fair housing laws, but state and local regulations apply, too. And, if the rental markets to military members, a solid understanding of how military clauses affect lease terms is essential.
Confusion Between the Military Clause and the SCRA
First, understand that the clause is no longer necessary for service members. Sometimes, landlords feel confused about military clauses because of their past uses. Before the Servicemembers Civil Relief Act (SCRA) enactment in 2003, a military clause added to a residential lease was the most efficient way military tenants could break their lease if duty called.
Thanks to the federal SCRA laws, service members (and their families) DO NOT need a military clause to break their lease for a permanent change of station or if they were issued orders for a deployment or temporary duty for more than 90 days. The SCRA also applies to military members activated or reactivated into service. It’s important to note that since the SCRA, it’s less common for landlords and property managers to include a military clause in a lease.
Learn more about the confusion between SCRA and military clauses in Should I Have a Military Clause in My Lease?
Military Clause and SCRA Payment Facts
Landlords unfamiliar with the process may worry about the SCRA and military clauses, assuming their tenants reserve the right to leave without paying rent. Thankfully, this isn't true. The SCRA provides explicit details regarding payment. However, it's up to the landlord to hammer out payment details with their tenants when placing a military clause in the lease.
Here's a quick look at the SCRA and your tenants' rent obligations.
With written notice (usually orders are included), a military family can terminate a lease no sooner than 30 days following the next due rental payment. For example, if the tenant receives orders on October 10, they must pay rent on November 1 and can terminate the lease as of November 30.
Read Everything Renters and Landlords Should Know About the SCRA and the Military Clause for more understanding of the Servicemembers Civil Relief Act.
What Exactly Is a Military Clause?
Landlords and tenants include military clauses to help each party negotiate and understand the flexibility military life necessitates.
It's a good idea to contact a local real estate attorney with experience working with military members, a military housing office, or JAG services for those seeking help crafting a military clause.
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Common Military Clauses in a Lease
1. Distance
A distance clause is helpful for military families in dense traffic-congested areas, such as the National Capital Region. For example, military families with orders to the Pentagon who think they’ll later receive orders to Fort Meade, Maryland, could benefit from a military clause.
The commute distance between the Pentagon and Fort Meade doesn’t mandate PCS orders that activate the SCRA permissions to terminate a lease, but the daily commute would be tough. So, in this case, a military clause that permits a lease termination in the event of reassignment to another installation significantly improves the service member’s quality of life.
2. On-Base Housing
Suppose a tenant wanted to move into military housing when they arrived at their new duty station, but it wasn’t available. They prefer to live there when space is open, but it could take more than a year. In this case, the two parties can negotiate a military clause centered around base housing availability.
Be aware that sometimes the homeowner is obligated to release a service member from a lease if they’re officially ordered by the command (like a senior leader who must live in a specific house on base). Each state has laws dictating how these terms apply. In some states, a military housing acceptance letter is enough to release a member from their civilian lease to move into base housing.
3. Medical Care
Military families with ongoing or sudden medical issues may ask to include a military clause concerning the possibility of moving closer to medical facilities that accommodate their needs.
4. The Reverse Military Clause
A reverse military clause helps in cases where the landlord is also a service member. It allows them to legally ask their tenants to vacate before the lease expires so they can return to their homes. A reverse military clause states that the landlord will move into their military rental if they receive orders back to the area. The details are negotiable, of course. But it's helpful to know that some states automatically side with the military landlord if they want to move home.
Why Are Landlords Concerned About Military Clauses?
Before the SCRA, military clauses helped service members break their leases. However, many lacked the terms that mitigated the problems landlords faced after the tenants left.
Unless it's written that the renters bear some financial responsibility, a military clause can present a potential problem for landlords. Suppose the tenants use a military clause to terminate their lease outside the military’s traditional summer moving season. In this case, a landlord might struggle to find qualified applicants in the off-season.
Vacancy could linger until another military moving cycle comes back around. Or, one might have to sign a one-year lease with tenants instead of a more financially stable two- or three-year lease. With professional help, landlords and tenants can design a legal military clause that protects and benefits both parties, ensuring everyone rests easier.
Although landlords might be hesitant to agree to military clauses in their tenant’s lease, know that military renters are some of the most responsible and reliable tenants among all renters. Yes, they’re guaranteed BAH each month and have responsibility and discipline drilled into their lifestyle, but an escalating bad landlord/tenant relationship could harm their careers.
By Dawn M. Smith
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