You may have heard of a military clause in a lease, but what about a reverse military clause? Is it the right move for military landlords, or a risky strategy to avoid?
What Is a Reverse Military Clause?
A "reverse military clause" is a lease provision that allows a landlord to terminate a lease early if they receive permanent change of station (PCS) orders and want to move back into the property. While the Servicemembers Civil Relief Act (SCRA) provides service members with a right to terminate a lease under qualifying military orders, a reverse military clause gives landlords a parallel right to end the lease with orders. This clause has become a topic of debate in military communities.
Whether military landlords should include a reverse military clause in the lease depends on a number of legal, ethical, practical, and market considerations. Understanding the potential benefits and risks can help landlords decide whether this clause aligns with their goals and their market environment.
Military landlords are often tempted to include a reverse military clause if there’s any chance they will get orders back to the home’s location. This prevents them having to find alternate housing in an area where they already own a home.
Legal Considerations: Is It Enforceable?
Reverse military clauses are not recognized under federal law in the same way that the SCRA protects tenants. There is no federal statute that allows a landlord to require a military tenant to vacate early, simply because the landlord receives new orders. It’s possible that a clause could be deemed unenforceable or discriminatory under certain state landlord-tenant laws.
Ethical and Practical Concerns
Even if the clause is legally permitted, it may create unintended consequences in landlord-tenant relationships. Tenants rely on housing arrangements as part of their family’s stability. Knowing that their landlord could terminate the lease early might discourage them from renting the property in the first place. While a landlord may think of the clause as a prudent business decision, tenants might view it as an unfair or unpredictable condition that makes the rental less attractive.
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Impact on Rental Property Competitiveness
Additionally, a reverse military clause can make a rental property less competitive. If other landlords in the area do not include such a clause, prospective tenants may favor those properties instead.
Real estate professionals may recommend against including such clauses for this reason.
Transparency and Fairness as a Landlord
On the other hand, some landlords argue that the reverse military clause in the lease can be written in a fair and mutually respectful way. For example, you could write your lease to give both parties the right to terminate the lease with certain concessions and adequate notice. For example, perhaps either party can terminate the lease with 60 days' notice to the other party, by paying a fee of two months rent. If written transparently, this can provide an out for either party.From a reputational standpoint, landlords should be mindful of how such clauses may be perceived within the community. In a military community, families may share housing experiences through informal networks, social media, and base relocation groups. A landlord known for enforcing a reverse military clause—especially in a way that causes hardship—may find it harder to attract tenants in the future.
Weighing the Pros and Cons of a Reverse Military Clause
While a reverse military clause may seem like a practical solution to mitigate risk to the landlord who may receive orders to the area, consider the practical, ethical, and legal questions. In areas with low vacancy rates and high demand, landlords may be able to secure tenants even with a reverse military clause. In less competitive markets, a reverse military clause may make it harder to find a tenant for the property. Either way, clarity, fairness, and legal compliance are essential.
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