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How a Call to Service May Impact Rights and Obligations Under a Lease
While the missiles have paused from North Korea and the bombings have slowed in Afghanistan, the world is still a dangerous place. As a result, at any time our military — made up of approximately two million men and women — may be called into action. If it is, the impact could be felt right here at home by our commercial landlords, especially those whose tenants are composed of businesses owned or operated by a sole proprietor, or an owner with one or two employees.
The Issues
When the owners of certain small businesses or their employees are called into service, many times there is no one left behind to operate the businesses, resulting in the tenant closing temporarily, or even permanently. When that occurs, can these military members be held accountable for the unpaid rent during the time that their businesses closes or, if the business permanently closes, for the duration of the lease term?
During periods of economic expansion, landlords may have less concern about filling the space and making up the lost rent. But in times of economic hardship, the empty space may create a personal hardship for the landlord in meeting the financial obligations related to the property.
The Experience in One State
Residential tenants in the State of Florida who are called to service can rely on Florida Statutes Section 83.682, which gives a service member the right to terminate his or her rental agreement 30 days after the landlord receives written notice, provided certain criteria enumerated in the statute are met. However, this statute only applies to residential tenancies and does not protect the service member who is bound by a commercial lease. Accordingly, the commercial landlord would still be able to hold those who serve in the military accountable for meeting the terms of their leases. But this does not mean that the issue is fully resolved.
State law is not the only consideration; commercial landlords may be called upon to address the federal Servicemembers Civil Relief Act (SCRA), 50 U.S.C.A. Section 3901, et.al. The SCRA was enacted to protect those who are called to serve and who, as a result, have been forced to drop their own affairs, whether personal or business-related.
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