When a PCS is in the works, finding a home is probably the most important part of the relocation process. For many military families, rental properties often fit their needs.
However, renters and landlords must consider a few things beyond searching online photos and ordering background checks. Both parties should know their legal obligations in the current lease and any potential lease in the future. The legal and monetary ramifications could be devastating if everyone isn't completely informed.
Before 2003, when the Servicemembers Civil Relief Act (SCRA) was created, a military clause was the most common term service members inserted into a housing lease. The tenant typically added a military clause in the rental agreement to exempt the service member from their signed lease if a PCS move was pending. Now, the SCRA covers most of those relocations, and a military clause can be added to a lease to simplify or further describe unique housing circumstances.
Whether you're a landlord or renter, the following information is everything you need to know about the military clause and its often confused cousin, the SCRA.
The SCRA is a federal law enacted to provide legal protections to active-duty service members. Regarding housing contracts, a clause in the SCRA guarantees military members, including certain groups of activated National Guard and Reserve components, the right to early lease termination if conditions are met.
When these qualifications are met, the tenant’s lease is terminated 30 days after the first date of the next monthly payment due.
Military members should also know the complete SCRA legislation covers more than real estate concerns. Protections and benefits are provided for in the following areas: interest rates, contracts, insurance, and tax rights, as well as during judicial proceedings. Military members often find significant savings by contacting their financial institutions and invoking their SCRA benefits, especially concerning credit card fees and APRs.
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 does not replace it.
This lease is executed with the express understanding by Landlord that Tenant is on active duty with United States Armed Forces. The lease may be terminated 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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Because relocation is inherently stressful, understanding the terms of the SCRA and a potential military clause is a proactive technique to alleviate undue angst about leaving a rental lease early.
Important points to note:
Honoring the request for a military clause may seem like a burden, especially if the landlord worries about an unnecessary vacancy. A tenant and landlord create a military clause to explain how and why it should be invoked.
The classic example of a military clause refers to any military region with multiple military installations nearby, but heavy traffic and intense commute times are daunting. Although the orders state the change in installation, the distance may not be far enough to warrant a true PCS, and the SCRA could not be activated. A military clause allowing termination due to a change in installation, regardless of PCS orders, is an option if both landlord and tenant agree.
Another popular military clause concerns an on-base housing waitlist. Tenants can include a military clause exempting them from the lease’s terms if a home on base becomes available. Landlords need to be aware that there are circumstances when each branch dictates that certain service members are mandated to live on post when housing becomes available.
State laws sometimes come into play regarding this issue. The state may interject that the service member needs only to provide the landlord with the documentation from housing stating a home is available to be removed from their lease.
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No. The SCRA is a federal law that protects service members from adverse actions resulting from exiting a lease early. It must be adhered to.
A military clause is a clause mutually agreed upon in the lease that describes a circumstance for termination, such as the desire to live on base when a house becomes available.
No. Individual state laws may override a military clause. For example, this military clause explanation document prepared by the Navy Legal Assistance Department in San Diego, California, describes the state’s laws regarding the enforcement of a military clause:
“In California, military clauses providing protection beyond the SCRA are NOT statutory (i.e. automatic). They must be negotiated by you (the lessee) and the landlord (the lessor), preferably in writing. The landlord has the right not to agree to a military clause.”
No. 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.
Knowing your specific rights as the landlord or renter is crucial to achieving a successful lease term, whether 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 documents and 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 if you have specific questions.