Avoid SCRA Fines: Military Tenant Compliance Guide

Avoid SCRA Fines: Military Tenant Compliance Guide

Florida Landlord Pays $64K for SCRA Violations: Case Breakdown

In June 2025, JWB Property Management LLC—a major Florida landlord—agreed to pay over $64,000 and reform its lease policies after the U.S. Department of Justice accused it of violating the Servicemembers Civil Relief Act (SCRA). The government alleged JWB unlawfully charged early termination fees to active-duty military tenants who had a legal right to break their leases. Whether you manage 10 units or 10,000, this case is a wake-up call: SCRA compliance is not optional, and mistakes can be costly.

4 Costly SCRA Mistakes That Triggered DOJ Action

According to the DOJ, JWB:

  • Charged early termination fees to at least six servicemembers who ended leases due to military orders.
  • Denied valid termination requests due to technicalities (like “by direction” signatures).
  • Enforced Florida’s 35-mile PCS limitation, which is preempted by federal law.
  • Lacked proper internal policies to identify and protect SCRA-eligible tenants.

JWB denied any wrongdoing but agreed to settle to avoid litigation. The settlement included:

  • $39,168.50 in direct payments to affected servicemembers
  • $25,000 civil penalty to the U.S. Treasury
  • A four-year consent agreement requiring new policies, employee training, and regular DOJ oversight

Military Lease Termination Rights Under SCRA Law

Under 50 U.S.C. § 3955, servicemembers can terminate a lease early without penalty if, after signing, they receive:

  • Deployment orders for 90+ days
  • A permanent change of station (PCS)
  • Certain stop-movement or emergency orders

The law applies to the servicemember and their dependents.

6 Essential SCRA Compliance Steps for Florida Landlords

1. Never Charge Military Termination Fees

The most critical takeaway: no penalties, liquidated damages, or “lease incentive clawbacks” are allowed if a tenant properly terminates under the SCRA. Refund prorated rent and any prepaid rent after the effective termination date.

2. Federal Law Trumps Florida’s 35-Mile Rule

JWB tried to enforce Florida’s 35-mile PCS limit, but federal law controls. If a servicemember’s PCS or deployment orders qualify under the SCRA, landlords must allow termination regardless of distance.

3. Accept “By Direction” Signatures

Military orders or certifications signed “by direction” are still valid. Rejecting them on that basis violates the SCRA.

4. Implement Mandatory SCRA Training

The settlement now requires annual SCRA training for all JWB employees and onboarding training for new hires. Your staff needs to understand when and how servicemembers can terminate leases and what documentation is sufficient.

5. Update Lease Agreements & Notices

JWB is required to revise all lease forms to comply with the SCRA and include a written notice to servicemembers about their rights and a point of contact for SCRA issues.

6. Verify Military Status Before Evictions

If you’re pursuing eviction or collection, you must check the Department of Defense Manpower Data Center (DMDC) for the tenant’s military status and file an SCRA affidavit with the court. Failure to do so can void your case and result in penalties.

SCRA Compliance Checklist for Florida Landlords

  • Include a SCRA compliance clause in all leases
  • Train your leasing and legal staff on SCRA notice and verification procedures
  • Maintain documentation of all military-related lease terminations and communications
  • Build a process to search the DMDC and track service status before filing suit

Protect Your Business: SCRA Compliance Is Non-Negotiable

This case reinforces that good intentions aren’t enough. SCRA compliance must be built into your leasing, operations, and legal processes. The consequences for noncompliance are real: public settlements, financial penalties, and damaged reputation. If you lease to military tenants, even occasionally, it’s time to review your leases, policies, and training. Because when the Department of Justice comes knocking, “we didn’t know” won’t cut it.

Need help developing SCRA-compliant leases or training your team?

Visit LandlordHotline.net to access attorney-reviewed resources built specifically for landlords.

Categories