Direct Deposit from Military?

Question

I am renting out a nice house and there is a couple that has applied-the husband has been in the military for over 15 years. They have pretty bad credit credit (590;620) between them. The wife says that the military does direct deposit into a landlord's account for off-base housing. I have never heard of this. Is this correct?

Thanks for your help!

Loc R. · Answer

I would do 2 things:

1.  The husband should have some proof of automatic deposit.  Verify this vs. their other expenses.

2.  Have them agree to enroll in electronic rent collection (and have them pay for it).  It's automatic, easier for you to collect, and IT IMPROVES THEIR CREDIT.  Josh/BP has an agreement with an electronic rent collection service, so give them a look!

Chris L. · Answer

Hi Mary,
This is not a big deal.  They go to military pay and set up an allotment.  Although it is easy to set up, it is also easy for them to cancel.
The more important issue is to ensure that you get a phone number to their supervisor.  I would also call the supervisor before renting.  Should they ever fall behind, the supervisor should ensure that they catch up. 
Financial responsibility is part of maintaing a military members security clearance.
I would not hesitate to rent to another  military member.
Good Luck
Chris

Mary M. · Answer

Thanks Steve and Chris for you first hand experience. I think a call to Ft Lewis is a great idea!

Chris Hutton · Answer

Hi Mary,
I served as an Army Officer for a few years but got out in 2003 so my information may be a little outdated.

If a soldier was late on rent payment we would receive calls from the landlord.  We would take it from there (I won't bore you with the details) and the landlord would get paid.  Generally that soldier was never late on payments again.

When I was living in off base housing, the base had a list of "approved" housing that was already inspected by the housing office on base.  For soldiers relocating they are required to report to the housing office before signing a lease with any landlord.

I did deploy oversees for a short period and legally I could have cut my lease without any penalties, although I choose not too as I didn't want the hassle of moving stuff into storage, but most of my soldiers did cut there lease at the time.

I would call the base housing office which I'm guessing is Fort Lewis or check out there website.  The office should have a webpage and it will help you understand the process for soldiers looking for off base housing.  Some of the base sites have information for landlords as well.

Good luck

Chris

Steve L. · Answer

I think renting to the military members is a good thing.  You can call the higher up officer if they don't pay.

A couple things to keep in mind:
- I believe there is some laws if they get transferred you have to allow them out of the lease (at least in California)
- Chances are you're going to get paid, but they can still trash your house.  It might be smart to call their existing landlord and get some feedback.

Good luck!

Mary M. · Answer

Thanks for your incite, Chris!

Chris L. · Answer

Mary,
The member being stationed in Germany will make it somewhat more difficult but not out of the question.
I am guessing that this is an Army soldier that will be stationed at Ft Lewis.
I would recommend that you get phone numbers and an e-mail address to his supervisor.
If you have an issue and lose track of the supervisor, you can contact Post housing at Fort Lewis for assistance.
In the Air Force, we do not tolerate our members not paying their obligations and I am confident that you will get the same support from the Army.
If I were in your position, I would try to make this happen because you are likely to get a long term tenant if he is re-stationing there after his 2 yrs in Germany.
Chris

Mary M. · Answer

Thanks everyone. One issue I forgot to mention is that they are relocating from California to Washington, but the husband is then being stationed in Germany for 2 years (leaving the wife and child behind for this time) until he is re-stationed here. If he is out of the country, will it be difficult to speak with his supervisor (I imagine he will be in Germany too)? I am definitely seeing that automatic rent collection is key here.

Ralph S. · Answer

I agree with Chris, and a friend of mine loves renting to the military, but, some points to consider:
Their military affiliation hasn't prevented their 600 credit score.
With 15 years in, it's probably less of a concern, but I'd make sure the enlistment isn't ending before the lease.
My friend whines that in order to rent to the military, they have someone inspect and determine what they believe fair rent is, and they negotiate the rent down, and the service member gets a housing allowance based upon their determination of rent.  Now, that was a few years ago, and Navy.  Things may have changed.  Point being, find out how it all works before jumping in.

Jay Feldman · Answer

No idea on the direct deposit and I do not have any tenants that are military. Others here I am sure can tell us if this is correct but I would jump at getting a military family in one of my rentals. I would make sure that the person who is in the military is at least one of the people signing the lease. I have been told if you have any problem with rent you can call there commanding officer and it will get resolved. You also should know if they are transfered and have to move they can break the lease and there is nothing you can do about it. Personally I do not have a problem with that.  That's my 2 cents. Good luck.

Direct Deposit from Military?

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