[quote=paramount]There is a back story to all of this:
In early July I decided to terminate the management contract on my property; for a number of reasons but mainly b/c I no longer trusted them.
Then I noticed the management company had not disbursed the rental income to my account. So I call them and they state that since I had cancelled my contract, they would need to hold the rent money until they determined that I did not owe them money.
Then that same day, I get the email notice from my tenant.
Specifically that the lease was being terminated under the SCRA (Service Members Relief Act).[/quote]
Under the SCRA, the tenant needs to show you one of three things in order to legally “jump” his/her lease and not be liable for the remainder of it:
1. Permanent Change of Station (PCS) orders which show the (imminent) reporting date to the new duty station which is more than 50 miles from your rental unit.
2. A Form DD-214 showing the tenant has separated from the service and thus is losing his/her housing allowance and moving/retiring elsewhere.
3. A processed and accepted military housing voucher from a Navy/MC Family Housing Office showing the move-in date of a servicemember and his/her family who have been wait-listed.
If he/she can’t come up with any of these, you have the right to the unpaid rental proceeds. Handle everything professionally like the other posters mentioned and then send your servicemember a letter detailing the disposition of their security deposit (and check, if applicable). You can’t take unpaid forward rent out of it. Then file a small claim for the duration of the lease and serve it on him or his local command if he is still stationed there. Meanwhile, clean it up and advertise it for rent again. If you re-rent it to a qualified tenant before the expiration of the servicemember’s lease, then you won’t be able to collect “double rent” for the weeks/months your new tenant is in there. But don’t dismiss the small claim. Go into court and reduce it by the amount collected (and to be collected) by the new tenant (who might be paying less rent). The judge will send you both outside to try to settle the case.
