Military personnel protect the country, so it should be an honor for a landlord to lease their rental property to these selfless individuals and have them as military tenants.
Renting to service members has many wonderful advantages as a property landlord because they are provided with special local and state laws when it comes to lease terms, given the nature of their jobs.
They offer unique protections, including provisions related to their basic allowance for housing (BAH) and off-base housing options, that benefit both landlords and military renters throughout the lease period.
In this post, we will share the wonderful things military tenants bring to your investment when renting to military tenants and families. Service members often have reliable rental payment due to government-backed gains, which ensures timely payment of monthly rent fees.
Additionally, they are protected under specific rental laws, providing landlords with assurance that pay will continue during their service commitments.
Many military families also prefer housing of of military bases, making renting to military tenants an excellent long-term strategy for landlords who value stability and well-maintained properties. Keep reading to learn more!
Advantages of Renting to Military Families
Depsite the positives of renting to military tenants, you'll still want to conduct a tenant screening before accepting any military tenant's application. That being said,
these are some of the common benefits when accepting military personnel as tenants.
1. Stable Income
Prospective military tenants have reliable wages and allotted military funds that can help cover their rent fees. Their military revenue is protected by local housing protections and state laws, as well as the Fair Housing Act, and does not depend on the conditional success of an employer who may lay off workers anytime. A stable income means a stable tenant who can cover consistent rent payments, ensuring you earn steady monthly returns on your property.
2. Sense of Responsibility
Given the nature of their work, military tenants are generally very hardworking. These military tenants are also tasked with knowing and upholding the law. This means that when active military members sign the leasing agreements, they’re very likely to comply with and honor the rules and conditions set in the contract.
3. Solid Support System
The military creates a strong support network for its military members. If financial hardships occur, military members can easily seek help and lean on several groups or other military families for assistance. This support helps them pay rent on time, making them more reliable tenants. Thus, compared to other tenants, military tenants are a more dependable set of military tenants for a landlord's property, ensuring they will consistently pay rent.
4. Attentive to Cleanliness
Discipline is deeply instilled in service members. Military families are used to inspections and ensuring their uniforms are well pressed, as well as keeping their work, living spaces, and property clean.
As a result, this attention to detail can extend to their property. For landlords, this generally means less stress about maintenance or property damages when renting to military tenants.
Additionally, offering a military discount can attract these responsible prospective tenants, and providing a military discount can help foster a positive relationship, encouraging long-term renting arrangements.
5. Promote Your Property
If military families have a positive experience in your rental property, service members can refer you and your units to other military families. They can make use of their expansive supportive network, which can generate new reliable tenants who may also benefit from their housing allowance to help cover rent. A good recommendation from trusted tenants is the best marketing landlords could ask for!
Servicemembers Civil Relief Act (SCRA)
Being a landlord, you must be familiar with the Servicemembers Civil Relief Act when renting to military tenants. These are laws designed to ease military tenants’ financial burdens. It acts as a rental partnership program while renting to military rentants. Due to their military status, military members are deployed and move more frequently than the average tenant. As such, the SCRA rental partnership program provides military families with the following protections:
- Foreclosures can’t be performed to military members without issuance of a court order.
- Vehicle repossessions can’t occur when the deposit was done prior to participating in the military service.
- Belongings can’t be sold off to make up for overdues unless a court order is issued.
- Active duty service members also benefit from a reduced 6% interest rate from debts such as credit card payables, car loans, student loans, professional loans and mortgage loans. Note that the latter has set conditions.
- Military members can also take advantage of deferred taxes eliminating penalties.
- Eviction is also delayed for active military status. Military tenants are given 90 days to pay their rent and settle their security deposit when they apply at the court.
- Prevents eviction if your rent is less that $4, 089.26 per month for the year of 2021. This number is subject to change every year.
- Civil proceedings can also be postponed to up to 90-days when on active duty.
The SCRA protection program starts the day someone joins active duty and terminates within 30-90 days after they leave active duty. The SCRA also applies to national guard members, reservists and coast guard members.
One of the most important conditions of the program deals with leasing agreement termination. Active military members are given an option for breaking the lease early with no penalty.
As long as a service member is on a minimum of 90 days duty, they can do so. They just need to provide landlords with a written notice of lease termination and a copy of military orders. They can either hand it in personally to landlords or deliver it by mail. Understanding this provision can help attract military families, ensuring landlords offer a flexible and supportive rental environment for service members.
SCRA Waivers
In some states, landlords can request military tenants to sign a waiver that can relieve them of the SCRA benefits. It’s helpful to check local Virginia laws before drafting any kind of waiver. So ensure that you comply before handing out a lease to military families. Always be alert to the updates to local laws to prevent any problems.
Waiver of Rights Procedure
Guidelines must be followed when military tenants decide to waive their rights under the SCRA:
- A written document is needed to waive the rights
- The signing of the waiver must be within and after the period of military service. Otherwise, if the signing was done prior to joining the military, it’s void.
It’s essential that the waiver is reviewed by a legal attorney to ensure full understanding of the conditions contained in the waiver.
Bottom Line
A landlord may feel that renting to military tenants and military families can result in income loss, however, the benefits far outweigh the potential loss. Most savvy landlords, especially landlords who are deployed, prefer to attract military tenants to their rental property considering the large pool of prospects. This means you don’t have to worry about vacancies and you’ll have more consistent cash for the maintenance fees of your property.
What’s more, by renting to military personnel and complying with the SCRA, you’re showing your support to active service men and women who risk their lives for your everyday safety. Supporting military families, especially those stationed near military installations, is not only patriotic but also a great way to establish a lasting rental relationship with dependable tenants.
Contact Rent Easy today for more information!
