Military personnel protect the nation therefore, it should be an honor to rent to these selfless men and women. Having them as tenants has many wonderful advantages as they are provided with special laws when it comes to leasing terms given the nature of their jobs.
In this post, we will share the wonderful things they bring to your rental business if you happen to have them as tenants.
Advantages of Renting to Military Personnel
Depsite the positives of renting to military personnel the tenant screening must still be a requisite before accepting any tenants application. That being said,
these are some of the common benefits when accepting military personnel as tenants.
1. Stable Income
Military personnel have reliable wages and basic housing allowances. Their income does not depend on the conditional success of a business or on a private employer who can layoff workers anytime. A stable income means they can make consistent rent payments and you earn a steady monthly returns.
2. Sense of Responsibility
Given the nature of their work, military personnel are very hardworking. They are also tasked with knowing and upholding the law. This means that when they 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. If financial hardships occur, service men and women can easily seek help and lean on several groups for assistance. Thus, compared to other tenants, they’re a more dependable set of renters.
4. Attentive to Cleanliness
Discipline is deeply instilled to military personnel. They’re used to inspections and ensuring their uniforms are well pressed and that their work and living spaces are kept clean. As a result, this attention to detail can extend to their home environments. As a landlord this generally means less stress about maintenance or damages.
5. Promote Your Rental
If they have a positive experience in your unit, they can refer you and your units to other military tenants. They can make use of their expansive supportive network which can generate new tenants. A good recommendation from trusted tenants is the best marketing you could ask for!
Servicemembers Civil Relief Act (SCRA)
Being a landlord, you must be familiar with the SCRA which are laws designed to ease military tenants’ financial burdens. Due to their job description, active duty military personnel are deployed and move more frequently than the average tenant. As such, the SCRA program provides service members with the following protections:
- Foreclosures can’t be performed 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 rental overdues unless a court order is issued.
- Active duty members also benefit from a reduced 6% interest rate from debts such as credit card payables, car loans, student loans, business 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 service members. They’re given 90 days to settle their rent 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 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 SCRA deals with leasing agreement termination. Active service members are given an option for breaking the lease early with no penalty. As long as a military service personnel is on a minimum of 90 days active 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 or deliver by mail.
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 a military personnel. 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.
A landlord may feel that renting out to military tenants can result in income loss however the benefits far outweigh the potential loss. Most savvy landlords prefer to attract military tenants considering the large pool of prospects. This means you don’t have to worry about rental vacancies and you’ll have more consistent cash for the maintenance expenses of your rental property.
What’s more, by renting to military personnel and complying with SCRA you’re showing your support to active service men and women who risk their lives for your everyday safety is patriotic.
Check out Rent Easy today for more information!