Landlord’s Guide to Renting to Military Tenants

More than one million active-duty military members defend our country from threats domestically and abroad. Our military members offer their lives to safeguard our flag, and when they return from the grueling work, it’s a landlord’s job to provide them with the type of home they’ve sworn to protect.

It’s an honor to host active-duty tenants on your property. Yet, while there are numerous benefits to renting to military members, there are several drawbacks to note before you finalize a lease. Renting to active-duty tenants is different from renting to non-military tenants. It is vital to understand how these differences may affect your property before you choose to rent to a military member.

How is Renting to Military Tenants Different from Renting to Non-Military Tenants?

Although renting to military members is similar to renting to non-military members, there are some key differences. The main distinction between military tenants lies in their protection with the:

• Servicemembers Civil Relief Act (SCRA) - According to the Consumer Financial Protection Bureau, the SCRA is “a law created to provide extra protection for servicemembers in the event that legal or financial transactions adversely affect their rights during military or uniformed service. These protections enable service members to devote their entire energy to the defensive needs of the Nation.”
• Basic Allowance for Housing (BAH) - is an allowance awarded twice monthly to active-duty military members to help with their housing expenses. Military members receive a BAH in addition to their salary pay.

While the BAH supports a military tenant’s ability to pay rent, the SCRA protects active-duty members if they cannot fulfill their financial responsibilities as a tenant.

How Does the BAH Help Military Tenants Pay Rent?

A military member’s geographic location, pay grade, and dependency status determine the amount of BAH they receive. The amount awarded varies depending on the tenant. For example, a tenured service member living in Wisconsin may earn more than a newly recruited service member in Wisconsin. A freshly recruited military member living in California may earn more BAH than the two members in Wisconsin, and a tenured, married service member living in Alabama may earn more than them all. The BAH is designed to aid, but not fully cover, most military tenants’ housing expenses. Although it only covers a portion of all housing-related costs, it promises consistent income to help offset a service member’s expenses.

How does the SCRA Protect Military Members?

The Servicemembers Civil Relief Act provides legal and financial protection to active-duty military members materially affected by their military service. Though the SCRA’s protections are extensive, it most commonly protects military members in the following ways:

1. Reduces the interest rate on any pre-service loans to a maximum of 6 percent – If military members incurred automobile, home, or student loan debt before becoming a service member, they could have their interest rate reduced to a maximum of 6 percent per year.
2. Protects against default judgment in civil cases – If a service member cannot appear in court, it is prohibited for the court to rule a default judgment in favor of the plaintiff suing the military member. The court cannot make a default judgment until it appoints an attorney to represent the servicemember.
3. Protects against foreclosure on their home – If a military member takes out a mortgage before entering active-duty service, they cannot be foreclosed on without a court order unless they waived their rights in the original mortgage contract. This protection applies while the member is on active duty and one additional year after leaving active duty.
4. Protects against repossession of their property and storage liens – the SCRA prohibits creditors from repossessing personal property, including a vehicle, without a court order. Suppose a military member violates their lease by failing to make a monthly payment. In that case, the creditor must first file a lawsuit and obtain a court order from a judge before they can repossess any property. Also, if a service member cannot pay their monthly dues for their storage unit, storage unit owners must obtain a court order to sue before they may sell or dispose of the military member’s belongings.
5. Allows military members to terminate residential housing and automobile leases without penalty - servicemembers may terminate their residential leases of property. If they signed a lease for housing before active-duty service, military members should be able to terminate their housing lease without penalty. Likewise, if they receive either deployment or Permanent Change of Station orders for at least 90 days, military members should be able to terminate their housing lease without penalty. This protection also allows servicemembers to cancel or terminate an auto lease without paying early termination fees.
6. Protects against evictions – If a military tenant cannot pay their monthly rent, a landlord must obtain a court order before they may evict the tenant. This SCRA protection is only granted to military tenants whose rent falls below an annual maximum. If the rent exceeds the maximum rate, the military tenant cannot benefit from the SCRA’s protections. The maximum rent varies from year to year. As of 2022, the maximum rent rate protected under the SCRA is $4,214.28. If the military member’s service affects their ability to pay rent, and their rent falls below the annual maximum, a court can block an eviction for three months. In some scenarios, courts may block an eviction for more than three months.

The government designed the SCRA to protect military members legally and financially affected by their military service. Before leasing to a military tenant, it is essential to understand how their protections under the SCRA may affect their tenancy.

What are the Cons for Renting to Military Tenants?

The cons of renting to military tenants directly correlate to the benefits awarded to them. Under the protections of the SCRA, active-duty military members enjoy immunities that may negatively impact a landlord’s business. The cons of renting to military tenants include:

• Their protection against default judgement in civil cases
• Their ability to terminate a lease early without penalty
• Their protection against evictions

If your military tenant must relocate due to deployment or PCS orders, they can legally terminate their lease with little notice and without penalty. In this scenario, landlords must return security deposits and release their tenants from lease obligations. Likewise, if tenants cannot pay rent due to their service, landlords cannot evict them or sue them. These protections could leave a landlord without the income they expected. They also erase the landlord’s option to seek new tenants to supplement the lost income. This may force the landlord to seek other ways to pay for the mortgage for the rental property.

Can I Deny a Military Tenant’s Application to Rent?

Military status is not protected federally. Therefore, if you fear losing income due to a military member’s deployment, PCS orders, or SCRA protections, you may deny a military tenant’s application to rent your property.

However, some states have fair housing protections based on military or veteran status. Before refusing a military tenant, check with your local state laws to ensure you have the legal right to refuse a tenant.

What are the Pros for Renting to Military Tenants?

Although the cons are important to consider, the positives of renting to military tenants are just as significant. Military tenants can positively impact your rental property because of their:

• Basic Allowance for Housing (BAH) - Because of the BAH, military members have a reliable source of income. This increases the probability that your tenant will pay their rent on time.
• Extensive network of renters - Active-duty members know a large network of potential renters. Because of their connections, military tenants can recommend and refer your unit to other potential tenants.
• Extensive background checks - Military members undergo extensive background checks to enroll in the armed forces. Renting to military tenants alleviates the hassle of screening a tenant’s criminal background before signing a lease.

With the promise of a steady income, a clean criminal record, and an extensive network of referable tenants, renting to military tenants offers numerous advantages. Before signing a lease with a military tenant, consider how these positives compare with the protections provided under the SCRA.

How Can I Advertise My Property to Military Tenants?

If you’re considering renting to active-duty servicemembers, certain features may attract them to your property. To effectively advertise your rental to military tenants:

• Consider including furniture in the rental – Since many military members are short-term renters, offering a furnished rental may incite them to choose your property. With the convenience of included furniture, active-duty members can easily settle into your property
• Consider making it kid-friendly - Many military tenants move with dependents. Making your apartment kid-friendly helps advertise your property as a space where families can thrive. Consider adding a fence around your property or highlighting if your property has multiple bedrooms and bathrooms.
• Highlight your proximity to military bases and important military locations - Location is key for military tenants and their families. Military members need housing close to their work locations on military bases. If your property is located near a military base, highlight this in your listing description.
• Be flexible with lease terms - Many military jobs require members to relocate often. Thus, military members greatly appreciate flexible lease terms. Highlight your property’s flexibility and communicate with all potential tenants to determine what lease term would work best.
• Offer Military Perks – Offering military discounts, such as waived move-in or amenity fees, may help servicemembers feel valued and respected. Advertising specific perks for military members may attract them and their network to your rental property.

Advertise your Rental with Apartments.com

Military tenants are unique to non-military tenants because of the government’s protections and the opportunities they can offer landlords. For every downside to renting to military tenants, there’s a benefit to match. For many landlords, these positives—along with the honor of renting to military tenants—outweighs any negative.

Regardless of if you wish to offer your short-term rental to relocating military members or take advantage of their reliable income with the BAH, the best way to showcase your rental to military tenants is with Apartments.com. With our online platform, you can highlight special offers to military renters, such as discounted amenity fees, and showcase your property’s proximity to important military locations. Once you find tenants interested in leasing your property, screen their credit and criminal history with ease. We offer a website that connects your property with the tenants you prefer. Whether you decide to rent to military tenants or not, showcase all your property offers to the people that matter most with Apartments.com.

Frequently Asked Questions

Are military tenants good?

Military tenants are great tenants regarding the benefits that they offer landlords. However, since each person is unique, landlords should properly screen each potential tenant to ensure they’ll be an excellent fit for your property.

Can military personnel rent a house while in the military?

Yes. Military personnel can rent a house while in the military.

Is rent free in the military?

Rent is not free in the military. The Basic Allowance for Housing covers most of the costs associated with housing for military tenants. However, military members are responsible for paying all housing costs—even if the BAH does not cover everything.