In the landlording business, there’s nothing quite as exciting as filling a vacant unit. When that 1, 2, or 3 year Lease gets signed, you sigh in relief at the thought of guaranteed revenue coming in for the next 12+ months, right?
That’s probably why it’s equally, if not more disheartening when you find out that your Tenant wants to break their Lease. Suddenly, you don’t have that security and frustration tends to take over.
I think we can all agree, that our first instinct in this situation is to fight back. Raise your hand if you’ve ever said or thought something along the lines of…"I don’t care what the reason is, they signed a contract!"
Unfortunately for us Landlords and Property Managers, Leases aren’t always the end all, be all.
In previous blogs, we’ve discussed several scenarios where Tenants may have the right to legally and freely break their Lease agreement, such as domestic violence disputes or when a Landlord fails to perform certain obligations.
Well, not to be the bearer of more bad news, but there’s yet another scenario that allows your Tenant to get out of a Lease without penalty, and it’s thanks to a little piece of legislation called the Servicemembers Civil Relief Act or the SCRA.
This is a very complex, and important law for you to be aware of. Since it’s Federal, it will affect you wherever you own rental properties in the United States.