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General Landlording & Rental Properties

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Michael Dombrowski
  • Milwaukee, WI
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Need help on these two issues: SCRA related and Potential Tenant Inquiry

Michael Dombrowski
  • Milwaukee, WI
Posted Jul 29 2013, 07:40

Hey gang,

I am in a predicament. I have a tenant whom singed an 18 month lease and due to circumstances he could not control, he had no choice but to join the armed services to help provide strong healthcare for cheap for his growing family. He is trying to give his notice and used the buzz phrase SCRA AKA Service Members Civil Relief Act. He is leaving for basic in September, but is trying to use the basic training as full time deployment which I dont by. I have agreed to help them out and try to find a new quality tenant for that location. They have also agreed to personally show the property to applicants to help me out and that gives them incentive to make this a smooth transition. I told them that I fully expect them to cover rent for any extended period of time that the house is not rented out. I will not rent out to just anyone until I find a quality tenant. He needs out September 1st, but I need them to cover rent until we someone in there. Is that too much to ask or will the military protect him from his obligations?

Now on the screening process. I had a person contact me and ask if I accept rent assistance. How do I respond to that without getting in trouble? I'd prefer to accept someone whom does not have rent assistance and I know that I will find someone that is more stable to move in, but I am unsure how to respond to that. I told this person that I am unfamiliar with rent assistance and would need to look into it. Thoughts?

The property is in a middle income neighborhood. Not sure why someone whom needs rent assistance would be willing to pay rent at what I want?

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Joel Owens
  • Real Estate Broker
  • Canton, GA
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Joel Owens
  • Real Estate Broker
  • Canton, GA
ModeratorReplied Jul 29 2013, 08:58

Are you talking section 8 for rent assistance??

If so section 8 isn't a protected class in the sense that you have to accept them as a tenant. Sometimes the full rent amount isn't covered with the voucher and the section 8 tenant has a tough time giving you the difference.

I wouldn't push the SCRA issue with the tenant too much until you know what your obligations are (if any) under that act. People say things (tenants) all the time. You have to validate what they say direct at the source to make sure you have the correct information. Tenants will spin all kinds of crazy stories into their favor to get out of paying rent.

Might want to take an eviction attorney to lunch on your dime to learn the local ropes more.

No legal advice.

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Michael Dombrowski
  • Milwaukee, WI
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Michael Dombrowski
  • Milwaukee, WI
Replied Jul 29 2013, 09:02

Thanks for the quick replay Joel. I am trying to determine when he is considered active duty. He is about to go through basic training. That hardly seems like active duty to me.

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Jason Minnich
  • Investor
  • Milpitas, CA
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Jason Minnich
  • Investor
  • Milpitas, CA
Replied Jul 29 2013, 13:17

When he goes to basic that officially starts his active duty commitment and he can legally break the lease, see here for your source - http://usmilitary.about.com/cs/sscra/a/scra2.htm. You have some recourse if the people he is living with are not his legal dependants and are on the lease but since he is doing it to get health benefits that is almost surely not the case. What this means is while it is great he is trying to fill the vacancy he doesn't have to and as long as he fulfils all his other lease terms you must honor the lease just as if it were expiring due to time. My advice, try to fill the spot but don't hold him to it because if someone finds out you played chicken with federal guidelines that's a bad day for you. Yes it sucks, but you have to realize that he is sacrificing a lot to go into the military and that is why these relief acts are in place. Good luck filling your vacancy.