Wednesday, April 4, 2012

Your PCS and Terminating Your Lease


My family is getting ready to PCS at the end of June so I thought I would spend a little time this month with some tips for a smooth PCS as well as ways to save money during your PCS.  I would love to hear tips and tricks you have as well!  You can share your ideas by commenting on these posts, posting on the Facebook page, or by sending me an email.  Today I thought I would start with breaking your lease agreement because I know many, many people misunderstand their military clause and end up paying an extra month's rent they could have avoided!

The Servicemember's Civil Relief Act provides many protections to active duty service members and one important provision is the right to terminate your lease early. As military families we don't have much choice about when or where we go so this is an important protection.  Under the act, a servicemember who receives permanent change of station orders or who is deployed to a new location for 90 days or more has the right to terminate a housing lease. But this does not necessarily mean you just walk up to your rental agency on your last day and say "see ya'." You will want to carefully read the clause in your lease because most require you to notify them a full month in advance of the last month you are going to be renting.  Note that even if your lease agreement does not have a military clause you may still be covered under the SCRA, but it is important to always ask for a clause to be added before signing your lease just to be safe and avoid unnecessary headache.

How to Terminate Your Lease

You must terminate your lease in writing with a copy of your orders. Personally I always bring two copies of both and ask the agency to sign one copy showing that they received the request for termination...you never know when you will need extra protection. If you rent on a month-to-month basis your termination will become effective 30 days after the first date on which your next rental payment is due. Confused? What that means is that if you pay rent on the first of each month you need to send your notice 2 months prior to your expected move date. If your lease is long-term (6 month, 12 month, 18 month, etc.,) your termination takes effect on the last day of the month following the month you deliver your notice.

Examples:

If you rent month-to-month and are moving out June 1st you would need to turn in your termination notice before May 1st. As long as you mail it before May 1st your next payment date would be May 1st and your lease will terminate 30 days after which would be June 1st. If you wait until May 2nd your next payment is due June 1st and your lease termination will not be effective until July 1st which means you'll have to pay for the month of June even though you won't be residing there.

If you  rent long-term and are moving out June 1st you'll need to give notice in April.  Then your lease termination will become effective May 30th. If you were to wait until May your termination would become effective June 30th and you would have to pay rent for the month of June despite not living there!

Note that the SCRA provision only covers active duty service members and it also is only valid on leases signed after entering the service.  

Other lease Related tips:

Locate your lease now and make sure you keep a copy with you after you move.  Most agencies will forward you your security deposit so if you'll want to have your "condition at move-in" handy in case they try to charge you for something that was already there.

Make sure to read over your move out requirements early and make a list of everything you have to do. You don't want to forget something easy that may cost you a lot if your company has to take care of it for you. (I know the charges for things on my lease are ridiculous -- $20 for a nail hole, really?!?!?)

Also, take inventory of things you'll need to fix!  I will definitely be using more command hangers and less nails at our next home if we rent again...

Keep receipts of any work you have done before move out.  Carpet Cleaning, Move Out Cleaning Services, etc.,  Some of these may be required, but others you will want in case they are dissatisfied with the job!

If you have an issue with a rental company at or after move out, contact your local JAG office to see if they can help you.  Unfortunately, military families are often targeted by unfair practices.  If they can't depending on the situation you may want to consider off-post legal assistance.

Do you have any other lease tips?  Share them here!


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