An unexpected email arrives from your military landlord, and it officially states that you and your family have 60 days to vacate the house. Not only do you have to leave the house, but you’re required to fulfill the cleaning and walk-through obligations.
What?! In your mind, you have two more years left on the lease! You’ve been paying rent diligently, and there haven’t been any issues whatsoever. After a scramble to find the rental lease, you read each and every line to understand what exactly is going on.
And there it is.
The military homeowner has added to the contract that if they receive orders (whether expected or unexpected) to return to the duty station their house is located near, they will return home, and the occupying tenants must vacate.
The actual words in the contract are probably written in confusing legalese, but they all mean the same thing. You have to leave. Why? Because you signed a rental agreement with a reverse military clause.
Definition of a Reverse Military Clause
A reverse military clause is a clause inserted into a rental lease by the homeowner stating they will return to their house if the military assigns them orders to come home. They can amend the details, including but not limited to, how much notice they give their renters and how the security deposit is returned.
Generally, it’s all legal if you've signed on the dotted line and didn’t come back with any of your own amendments to the lease. The legal sticking point may be if your state has something to say about reverse military clauses. As with most rental housing agreements, the laws vary from state to state, so becoming familiar with them is imperative.
The reverse military clause derives its name from its predecessor, the regular military clause, used in years before the Servicemembers Civil Relief Act (SCRA) existed. Tenants included a military clause in lease to alleviate financial ramifications for renters who had to move before their lease was up.
The military clause now lays out details about the renter’s specific needs to break the lease early—needs that the SCRA doesn’t already cover. For example, some renters may prefer to live on base, but base housing wasn’t available at the time of the PCS.
Some people view the SCRA as protection for renters and a reverse military clause protection for landlords.
The Tenant’s Perspective and Concerns
- A reverse military clause in lease is a term that isn't regularly heard of, especially for renters new to the scene. There’s a good chance they’ll misinterpret the clause if it is not explicitly pointed out.
- Even if adequate time is given to find a new home, the renters must come up with what is likely thousands of dollars for another security deposit and first and last months' rent for the new house. The previous security deposit doesn’t have to be repaid by the owner until the time referenced in the lease.
- Because the move is not part of an official PCS, the tenants are on the hook for moving costs, whether DIY or through a company, adding even more cost to the move.
- There’s a good chance one of the spouses will either be deployed or unavailable to help relocate the family after the reverse military clause is invoked.
- Tenants do not see a reverse military clause as equal protection for homeowners. The homeowner doesn’t incur nearly as much financial burden or other ramifications as the tenants.
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The Landlord’s Perspective and Concerns
- Most military landlords empathize with their military tenants and hope to provide them enough time to prepare for the displacement. However, there’s a possibility the homeowner didn’t anticipate the return home, so the renter’s frustration is acknowledged, but the lease terms are in place.
- The homeowner is not responsible for educating, reading, or explaining the contents of the lease to the prospective tenants.
- Owning a rental home is a business. And because of this, homeowners view a reverse military clause as insurance for the well-being of their personal and business activities.
- Homeowners consider a reverse military clause equal to the protections the SCRA offers military tenants.
How to Deal with Bad Tenants: Understanding Your Options may offer solutions to your tenant troubles.
Alternatives to the Reverse Military Clause
If a reverse military clause was not part of the initial signed agreement and the owner has received orders to return home, some alternatives could benefit both the tenant and the owner.
- After the owners have let the renters know they will not renew the lease, they could offer the tenants the option to leave early. This may make sense for the renter’s timeline.
- The owner could offer a monetary incentive for the renters to move before the lease term expires. Money to pay movers or supply the next home’s security deposit is an option.
- Owners can make use of temporary and furnished housing until the lease expires.
- Although likely not ideal, the homeowner could investigate renting or buying another property near their owned home.
Lease Clauses to Understand for the Future
For lease agreements in the future, both the landlord and the renter should be aware of additional clauses related to early relocation. These clauses can be negotiated or tailored to suit the needs of the homeowner and/or the tenant.
- A Buyout Clause is written to offer the option for the owner or the seller to buy out the lease before the agreed-upon lease terms have occurred. This could help renters if their SCRA military protections are not valid.
- A Break Lease Clause allows the owner or the renter to exit the lease under agreed terms. For example, 90 days’ notice is given with an additional break lease fee equal to three months’ rent.
- A Sale Clause allows the owner to give the renter a specified amount of time, such as 90 days, before selling the house. The owner could add this clause to the lease to avoid a penalty for breaking the lease terms.
Before signing or including any custom clause in a lease, it is strongly advised that you review the contents with a legal professional, as state laws regarding rental homes vary significantly.
In conclusion, there are a couple of big takeaways to remember regarding a reverse military clause. The clause must be written into the lease for it to be enacted. Renters—if you are uncomfortable about potentially being surprised by having to leave the house early, then don’t sign the lease!
Renters and owners, be good and fair to each other, and always read the lease! If you need a legal document resource, we recommend checking out the options from U.S. Legal Forms.
