Becoming a military landlord offers unique opportunities but comes with its own set of challenges. Whether you’re a military member renting out your home during deployment or someone looking to lease to military tenants, understanding the nuances can help you succeed. Here are eight key things you should know:
1. Understand the Servicemembers Civil Relief Act (SCRA)
The Servicemembers Civil Relief Act (SCRA) provides legal protections for active-duty military members. One of the most significant provisions is the ability for military tenants to terminate a lease without penalty under certain conditions, such as receiving deployment orders or PCS (Permanent Change of Station) orders. This law exists to reduce financial stress on service members, but it can catch landlords off guard if they’re not prepared.
To stay compliant, include language in your lease agreements acknowledging the SCRA. While this may feel like a risk, understanding and respecting these protections will help you build trust with your tenants and avoid legal issues.
2. Provide Flexible Leasing Terms
Military tenants often face unpredictable schedules due to deployments, training, or PCS moves. Offering flexible leasing options, such as month-to-month leases or shorter lease terms, can make your property more appealing. Additionally, consider including a military clause in your lease agreement. This clause should outline how early lease terminations due to PCS or deployment will be handled.
Flexible terms not only attract military tenants but also help establish a reputation as a landlord who understands their unique needs.
3. Screen Tenants Carefully but Fairly
While military tenants are generally dependable, tenant screening remains a critical step. Use a veteran-founded, comprehensive platform like RentRisk to review credit history, rental history, and employment stability. For military personnel, additional documents like military orders can verify their active-duty status.
It’s important to remain compliant with fair housing laws during the screening process. Avoid making decisions based on stereotypes or assumptions about military tenants and focus solely on their qualifications as renters.
4. Market Your Property to Military Families
To attract military tenants, list your property on websites tailored to their needs, such as AHRN.com (Automated Housing Referral Network) or MilitaryByOwner.com. These platforms are specifically designed for service members searching for housing near military bases.
When creating your listing, highlight features that cater to military families, such as proximity to military installations, reputable schools, public transportation, and amenities like fenced yards or garages. Including keywords like “military-friendly housing” can also improve your search visibility.
5. Set Clear Expectations About Property Care
Military tenants may face unique challenges in maintaining your property due to deployments or extended periods away. To address this, outline clear responsibilities for property upkeep in your lease agreement. For example, you might specify how lawn care or snow removal will be managed during their absence.
Consider offering optional property management services, which can ease the burden on tenants and ensure your property remains in excellent condition. This is especially valuable for landlords who don’t live near the rental property.
6. Be Prepared for PCS Moves
A Permanent Change of Station (PCS) move can happen unexpectedly, often with little advance notice. This means your military tenant may need to terminate their lease early. To minimize disruption, maintain a plan for quickly re-leasing the property.
Building relationships with local real estate agents or property management companies can help you fill vacancies faster. Additionally, having a waitlist of potential tenants can reduce downtime between leases.
7. Offer Military Discounts or Incentives
Providing incentives for military tenants is a great way to show appreciation for their service while making your property more competitive. Examples include waiving application fees, offering a small monthly discount, or providing a move-in bonus.
These gestures not only help attract military tenants but also foster goodwill and loyalty, which can lead to long-term tenant relationships or referrals within the military community.
8. Maintain Open and Respectful Communication
Clear and respectful communication is crucial when working with military tenants. Their unique circumstances, such as deployments, long working hours, or frequent relocations, require understanding and flexibility.
Establish multiple ways to stay in touch, such as email, phone, or secure online portals. Platforms like RentRisk can help streamline communication and document all interactions, reducing the risk of misunderstandings. Being proactive and approachable can help resolve issues quickly and maintain a positive relationship with your tenants.
Final Thoughts
Managing a rental property for military tenants comes with both opportunities and challenges. By understanding the unique aspects of military life and tailoring your approach, you can create a positive experience for both you and your tenants.
Leveraging tools like RentRisk can simplify tenant screening, property management, and communication, allowing you to focus on growing your rental business. With the right strategies in place, becoming a military landlord can be a rewarding and successful venture.
