Protect Your Credit When Terminating a Rental Lease (ETS)
This valuable information may be overlooked by transitioning Servicemembers
The Servicemembers Civil Relief Act provides relief to Soldiers when dealing with the termination of real property leases. Specifically, if an active duty Soldier receives military orders for a permanent change of station or deployment orders for 90 days or more, they may terminate their lease without penalty. To do so, the Soldier must deliver 30 days written notice of the termination to the landlord with a copy of the military orders.
The SCRA only mentions a permanent change of station (PCS) or deployment as grounds for a penalty free termination of the lease. But what about when a Soldier reaches the Expiration of Term of Service (ETS)? The Army will pay to move the Soldier back to his or her home of record and there are orders involved. So, does the SCRA provide for a penalty free termination of the lease in the case of ETS as well?
The answer is yes.
An ETS counts as a permanent change of station for the purposes of the SCRA. The Joint Federal Travel Regulation (JFTR) Ch. 5 U5000 B. regulates PCS travel and discusses the “PCS Travel Covered.” In this chapter, it lists out the different types of PCS and number four is separation or retirement. This is defined as travel from the last Permanent Duty Station to home (home of record) upon a discharge, resignation, or separation from the Service under honorable conditions; retirement; or temporary disability retirement. Clearly, the JFTR defines ETS as a subcategory of PCS. The same 30-day notice and a copy of the orders would need to be given to the landlord, but the Soldier would be covered under the SCRA when he or she needs to terminate a lease because they have reached their expiration of the term of service and are returning to their home of record.
Editorial Note: Capt. Victoria Salibi, Office of the Staff Judge Advocate authored this article for The Fort Campbell Courier (December 12th, 2014)
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United States Department of Justice ( Great Q & A on what exactly SCRA will do for you…the servicemember or veteran