The law is crystal clear: servicemembers can terminate residential leases early when they receive PCS or deployment orders.

No fees. No penalties. No negotiation required.

Yet every year, property management companies charge military families thousands of dollars in illegal fees—betting that servicemembers won't know their rights or won't have time to fight back during a PCS move.

Here are the landlords who got caught.

Greystar Real Estate Partners

Settlement: $1.4 million (January 2025)

Greystar manages over 857,000 apartment units nationwide. When military families tried to terminate leases under SCRA, Greystar's response was to deny requests and charge early termination fees.

Their defense? The property management software wasn't configured to handle SCRA requests.

The DOJ didn't accept "our computer said no" as an excuse. Greystar paid $1.4 million and agreed to overhaul their entire SCRA compliance program.

FPI Management

Settlement: $300,000+ (2020)

FPI Management operates apartment communities across the western United States, including many in military-heavy markets like San Diego, Colorado Springs, and the Pacific Northwest.

The DOJ found that FPI:

  • Charged early termination fees to military tenants
  • Required servicemembers to pay rent beyond the SCRA-mandated 30-day period
  • Failed to train staff on military tenant rights
  • Did not have procedures to process SCRA requests

FPI paid restitution to affected servicemembers and agreed to implement compliance measures.

Lincoln Military Housing

Settlement: $750,000+ (2014)

The irony is not lost: a company with "Military" in its name violated military housing protections.

Lincoln Military Housing provides privatized housing on and near military bases. The DOJ found that they:

  • Overcharged servicemembers on lease terminations
  • Failed to properly process SCRA requests
  • Collected fees they weren't entitled to

The settlement required Lincoln to pay restitution and reform their practices.

JWB Real Estate Companies

Under Investigation (2024)

JWB Real Estate Companies operates in Jacksonville, Florida—home to Naval Station Mayport, NAS Jacksonville, and thousands of military families.

The company is under DOJ scrutiny for potential SCRA violations related to lease terminations and fees charged to military tenants. Investigation ongoing.

RedSail Technologies

Under Investigation (2024)

RedSail Technologies, a property management software provider, is being examined for how their systems handle SCRA requests. When property managers blame "the system," regulators are now looking at the system providers themselves.

The Pattern

These aren't isolated cases. They represent a systemic problem in the property management industry:

1. Profit Incentive

Early termination fees are profit. A typical fee of 2-3 months' rent on a $1,500/month apartment is $3,000-4,500. Multiply by thousands of military tenants, and you're looking at millions in revenue.

Some property managers have decided that revenue is worth the risk of getting caught.

2. Military Market Concentration

Property management companies know where military families live. They buy and manage properties near bases specifically because:

  • Guaranteed tenant pool (military has to live somewhere)
  • BAH provides reliable rent payment
  • High turnover means more fees and rent increases

But high turnover also means more SCRA lease terminations—which cuts into profits. Some companies try to discourage or deny these terminations.

3. Assumption of Ignorance

Property managers bet that:

  • Servicemembers don't know their rights
  • PCS stress means families will pay rather than fight
  • JAG offices are overwhelmed
  • Small amounts aren't worth pursuing legally

They're often right. But when they're wrong—when a servicemember fights back or reports to the DOJ—the consequences are severe.

What the Law Actually Says

Under 50 U.S.C. § 3955, you can terminate a residential lease if:

You receive orders for:

  • PCS to a location at least 35 miles from the residence
  • Deployment for 90+ days
  • Change of station orders

To terminate:

  1. Deliver written notice to the landlord
  2. Provide a copy of your military orders
  3. Termination effective 30 days after next rent due date

You owe:

  • Rent through the 30-day period
  • Nothing else

You do NOT owe:

  • Early termination fees
  • Remaining lease balance
  • "Liquidated damages"
  • Administrative fees
  • Cleaning fees beyond normal move-out
  • Anything not specifically allowed by state law

Red Flags to Watch For

"Our policy requires a fee"

Policy doesn't override federal law. If they claim you must pay a fee to terminate, they're violating SCRA.

"We need to verify your orders"

They can verify your orders are legitimate military orders. They cannot "approve" or "deny" them. If they're taking weeks to "process" your termination, they're stalling.

"You need to pay through your original lease end date"

Wrong. Your obligation ends 30 days after the next rent due date following proper notice. Not one day longer.

"This clause in your lease says..."

SCRA preempts lease terms. Any clause requiring fees or extended payment is unenforceable against servicemembers with valid orders.

"We'll report this to your chain of command"

Some landlords threaten to contact your commander. While they can certainly call the base, this is often a scare tactic. Your commander will likely support your exercise of legal rights.

How to Protect Yourself

Before You Sign

  1. Read the SCRA clause. Most military-area leases include an SCRA clause. Read it carefully. It should match the law—if it adds requirements (like fees), that's a red flag.
  2. Ask about their SCRA process. How do they handle military lease terminations? If they can't answer clearly, consider it a warning sign.
  3. Document the condition. Photos of the unit at move-in protect you at move-out.

When You Get Orders

  1. Submit proper written notice immediately. Don't wait. The sooner you notify, the sooner your 30-day clock starts.
  2. Include your orders. A copy of your PCS, deployment, or change of station orders.
  3. Send certified mail AND email. Create a paper trail. Get delivery confirmation.
  4. State the law. Reference 50 U.S.C. § 3955 explicitly.

If They Push Back

  1. Get it in writing. Ask them to put their denial or fee requirement in writing.
  2. Contact your JAG office. Base legal assistance can often resolve issues with a single phone call.
  3. File a CFPB complaint. The Consumer Financial Protection Bureau tracks complaints and forwards to appropriate agencies.
  4. Report to the DOJ. The DOJ SCRA enforcement page accepts complaints.
  5. Contact your state AG. Many states have additional protections and enforcement mechanisms.

The Tide Is Turning

DOJ enforcement is increasing. The Greystar settlement in 2025 sends a clear message: property management companies will be held accountable.

If your landlord is fighting your SCRA lease termination, you may be helping build the next federal case.

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