When a PCS move is coming up, securing housing is one of the most important parts of the relocation process. For many military families, renting is the most practical option. However, both renters and landlords need to understand how the military clause and the Servicemembers Civil Relief Act (SCRA) affect the termination of a lease when PCS orders require a service member to move before the lease term ends.
Whether you're a landlord or renter, the following information explains what you need to know about the military clause and its often-confused cousin, the Servicemembers Civil Relief Act (SCRA).
What Is the Servicemembers Civil Relief Act?
The SCRA is a federal law enacted to provide legal protections to active-duty service members. Under the SCRA, a stipulation exists that allows military service members, including certain activated National Guard and Reserve units, to break their rental leases early if specific circumstances apply.
The SCRA allows early termination of a lease if:
- The member entered military service during the lease.
- The member started a lease during military service and received orders to deploy for at least 90 days.
- The member received Permanent Change of Station orders.
AND - The tenant provides written notice of intention to move.
- The tenant delivers the landlord a copy of official military orders.
- The tenant satisfies rent payments for both the month the notice is given and the following month.
When these qualifications are met, the tenant’s lease is terminated 30 days after the next monthly payment due date.
For military members, the complete SCRA legislation covers more than real estate concerns. Protections and benefits are provided in the following areas: interest rates, termination of phone service, insurance, tax rights, and even judicial proceedings.
What Is a Military Clause?
A military clause is not part of the SCRA. It is a customized agreement inserted into a lease. The tenant and the landlord formulate and uphold it. A military clause often enhances the SCRA, but it doesn't replace it.
A typical example of a military clause might be similar to the following:
This lease is executed with the express understanding by Landlord that Tenant is on active duty with the United States Armed Forces. The lease may be ended thirty (30) days after Tenant has notified the Landlord, in writing, that the Tenant has received notice from the Housing Office that government quarters are available under either of the following conditions: (1) Tenant has been ordered by their command to reside in government quarters; or (2) tenant informed Landlord prior to commencement of the lease that Tenant has requested government housing and is awaiting government quarters.
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What Renters Need to Know About the SCRA and Military Clause
Understanding the SCRA and any military clause in your lease is a practical way to prepare for situations where a lease may need to end early.
Important Points Regarding Tenants' Rights
Questions about the SCRA, military clause, and tenants' rights can be resolved by contacting your installation's U.S. Armed Forces Legal Assistance. They can also help prepare an SCRA lease-termination letter, although sample letters are available online.
Keeping clear communication with your landlord about possible PCS moves is helpful, but remember that SCRA protections apply whether or not your lease includes a military clause. Regardless of what the lease dictates or if it includes a military clause, the SCRA prevents the renter from paying the remainder of the lease or a termination fee if the lease has to be broken within SCRA protections.
The SCRA also outlines how lease termination dates work. A lease ends 30 days after the first day of the next full month of rent. For example, if orders arrive on October 10, then full payment is due November 1. The lease then ends on November 30.
If only the spouse's name is on the lease, SCRA protections may still apply, depending on state laws and whether the housing was intended for the service member's use. However, the simplest approach is to include the military member's name on the lease or ensure the spouse has a housing-specific power of attorney to submit notice if needed.
Tenants may also legally waive their SCRA rights, though this is uncommon. In tight rental markets, some military renters choose this option to secure housing quickly. Any waiver must be clearly written into the lease and signed by both parties.
What Landlords Need to Know About the SCRA and Military Clause
Some landlords are hesitant to include a military clause due to concerns about it leading to unexpected vacancies. A military clause can be created by a landlord and tenant to outline specific situations.
One common example of a military clause involves areas with multiple military installations. A service member may receive orders to a different installation in the region, but the move may not be far enough to qualify as a true PCS. In these cases, SCRA protections may not apply. A military clause can address this by allowing termination of the lease due to a change in installation, even without PCS orders, if both the landlord and tenant agree.
Another frequently used military clause relates to on-base housing waitlists. Tenants can include a military clause exempting them from the lease’s terms if a home on base becomes available. Landlords should be aware that service branches can mandate on-base housing for certain service members when space opens.
State laws may influence how these on-base housing situations are handled. In some states, the service member needs only to provide the landlord with documentation from the housing office confirming availability to be removed from their current lease.
Important Points for Landlords
Tenants cannot be penalized for utilizing the SCRA in appropriate situations. Although managing an early lease break can be inconvenient, landlords must, by law, return a full security deposit. This excludes the previously agreed-upon damage assessments, often determined in the lease as "normal wear and tear."
Service members who rent sometimes have the luxury of a couple of months’ notice of transfer. If the tenant submits the written notice before the required 30 days, the landlord cannot evict the tenant early. The landlord must also refund any prepaid monthly rent fees until the termination date.
It’s also important for landlords to note that the SCRA isn’t restricted to service members only. It also covers the family, meaning the spouse is not responsible for the lease, even if their name is on the document.
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3 Common SCRA and Military Clause Misconceptions
Misconception #1: The SCRA and a military clause are the same.
No, they are not the same. The SCRA is a federal law that protects service members from adverse actions resulting from prematurely exiting a lease. It must be adhered to.
Before 2003, when the Servicemembers Civil Relief Act was created, a military clause was the most common term service members inserted into a housing lease. But the military clause is simply a clause mutually agreed upon in the lease that describes a circumstance for termination of the lease, such as the desire to live on base when a house becomes available.
Misconception #2: Every state has the same landlord/tenant laws pertaining to the military clause.
Individual state laws may override a military clause. For example, in California, military clauses extending SCRA protections are not standard. These stipulations must be negotiated by the tenant and landlord within the lease. The landlord retains the right to omit a military clause.
Misconception #3: A military clause is a tenant’s tool for automatically nullifying a lease.
The SCRA is the only law that allows service members to end a housing lease early if the tenant meets the correct conditions: military service starts during the lease, orders to deploy for at least 90 days are received, or PCS orders are written. The tenant also must provide written notice and a copy of the orders.
When it comes to rental agreements and a military clause, remember that each state has different laws that affect a military clause, and each tenant/landlord rental agreement is unique. Knowing your specific rights as a landlord or renter is crucial to achieving a successful lease term, whether it's completed in its entirety or shortened by military duty.
To start in the right legal direction, consider using the services offered by MilitaryByOwner partner, U.S. Legal Forms. The company has 85,000 state-specific legal forms covering many categories, including a Landlord-Tenant package.
Note: This article is not intended as legal advice but is for informational purposes only. Check your state's laws and consult with an attorney for your specific situation.
