What Landlords Should Know About Renting to Military Families: Ensuring Fair and Flexible Leases
Landlords renting to military families can expect many perks of being an army renter. But it imposes limitations on a soldier’s service. As a landlord, understanding military renters rights and creating flexible lease agreements are crucial in successfully adjusting to this niche market.
This guide helps landlords create fair and accommodating lease terms for military tenants. We will explore the critical elements of creating flexible lease agreements suitable for military tenants. Finally, we will give you essential information on communicating well so there are as few disruptions as possible.
These tips lead landlords toward having a better experience for all involved in the military tenant rental process.
Legal Foundations
Rented for military families rests squarely on the Servicemembers Civil Relief Act (SCRA), a federal law that significantly saves active duty military. With such an important act having far-reaching implications on housing arrangements, landlords must familiarize themselves with its provisions.
SCRA Overview
If a military tenant receives orders for a Permanent Change of Station (PCS) or will deploy for at least 90 days, they may terminate their lease early without penalty under the SCRA. Evictions of active-duty military members also require a court order, and courts can stall eviction proceedings for up to 90 days.
Military Clause
A military clause in your lease agreement protects your interests and respects these rights without crossing a line. Your lease clause should explicitly state when a service member can go ahead and terminate their lease early for military orders. Set requirements for written notice of termination, copying of official military orders, and effective termination date.
Lease Flexibility
Beyond the bare minimum requirements that the SCRA entails, allowing additional flexibility can help you market your property to those military tenants. Consider reducing the lease term to a month, perhaps a lease term, or whatever variable line might help with scheduling. You might also permit subletting or lease assignment.
Financial Clarity
What You Should Know About Security Deposits And Rent Proration: When drafting your lease, be clear about security deposit and rent proration policies. Be explicit that security deposits will be returned if a tenant is terminated early by being ordered to leave by the military. That rent will be prorated to reflect the times a tenant occupied a given period.
Tenant Verification
It is very important to check military status during the application process. Check to ensure that people you are contemplating using from the military are doing so on active duty rather than reserve or part-time, and demand proof of active duty status, such as a military ID or orders, to ensure SCRA protections are being requested.
Open Communication
When you rent to military families, open communication is key. Discuss with tenants during the first phone call of orders received so that you can discuss potential deployment or relocation scenarios with them.
Local Knowledge
Learn about military installations close to your area and typical deployment cycles. This will help you know when to expect tenant turnover and plan accordingly.
Fair Treatment
Military applicants must always be treated fairly and evenly based on standard application criteria such as credit history and income. Don’t assume the likelihood of deployment or relocation.
Risk Mitigation
Of key importance is taking measures to mitigate the risks that may arise from early terminations; therefore, you might wish to limit initial leases to 12 months and not provide large discounts on longer lease terms. If possible, try to have the lease duration match the tenant’s order duration.
Efficient Termination
Be able to handle military tenants who need to terminate the lease to go on orders quickly and compassionately. Check the provided military orders promptly, conduct a move-out inspection quickly, and return the security deposit as quickly as possible.
Legal Compliance
Learn about federal, state, and local laws regarding military tenants. Perhaps consider consulting with a local real estate attorney with experience in military housing issues who can help you peel back those policies, outside of simply swiping at the power from within the concession.
Final Thoughts
If you are willing to put some extra effort toward learning how to rent to military families, it can be a positive experience for you, much like any other tenant. If you experience a shortage of tenants, this is your cue to provide military-friendly lease agreements for fair lease negotiations so that you can get a surplus of the same steady stream of reliable tenants.
Remember that military families will face obstacles, and your understanding and support go a long way toward helping them. Finding the right balance between your business interests and compassion for their service will help create a win-win situation between landlord and tenant. This approach ensures you keep an outstanding rental property and promotes one person’s well-being at a time, and it’s our country doing the serving. Additionally, considering the unique circumstances of military families, there may be times when they need flexibility in their living arrangements. Offering lease options or shorter-term rental agreements can be a beneficial option for both parties. It’s also important to acknowledge the potential financial constraints that military families may face, which could make renting vs buying vacation homes a more feasible and practical choice for them. By understanding and accommodating these needs, you can build a strong and mutually beneficial relationship with your military tenants.
