Accommodation Policy – Overseas Rental Allowance (ORA)
Purpose
This policy outlines the entitlements, responsibilities, and procedures for Service Personnel (SP) posted to Canada who are eligible to claim the Overseas Rental Allowance (ORA). It also defines requirements for tenancy agreements and the approval process administered by BDLS.
1. Overseas Rental Allowance (ORA)
SP posted to Canada are entitled to the Overseas Rental Allowance (ORA), which is designed to assist with accommodation costs during overseas assignments.
- In some regions, accommodation equivalent to a Private Married Quarter (PMQ) is available through the Canadian Forces Housing Agency (CFHA), providing Residential Housing Units (RHUs).
- In most cases, SP must source accommodation on the open rental market.
- Where practicable, SPs are encouraged to take over their predecessor’s property; however, this is not mandatory.
- Duration: ORA is payable for the full duration of the overseas assignment.
- Policy Reference: Comprehensive regulations are contained within JSP 752.
- Personal Contribution: When in receipt of ORA, SP will still incur a deduction on their Statement of Earnings (SoE) equivalent to standard SFA (Service Family Accommodation) or SLA (Single Living Accommodation) charges.
- Accommodation Status: Properties rented under ORA are considered official accommodation (SFA/SLA) rather than private rentals.
- Rental Ceiling: The BDLS Finance Administrator (FA) will confirm the maximum rental amount permitted under ORA. You may choose to rent a property above this ceiling; however, you will be personally responsible for paying any amount that exceeds the approved limit, and you must confirm that you are willing to cover this additional cost.
2. Tenancy Agreements and Lease Requirements
Before signing any lease, SPs must submit the following to the BDLS Finance Administrator FA:
- A draft tenancy agreement
- The property listing or advertisement
BDLS FA will verify compliance with MOD standards and ensure required protection clauses are included.
- Language: A standard English-language lease must be used. Landlords must provide an English copy if the initial version is French.
- Name on the lease: The Service Person (SP) must be the only individual named on the lease. Neither spouses nor BDLS are to be listed, as they are not the liable party.
- Mandatory Clauses (provided by BDLS FA):
- An appropriate exit clause (Clause A) for short-tour postings. Clause A is required to protect the SP, as they remain personally liable for rental costs should they be short‑toured and no longer entitled to Overseas Rental Allowance (ORA).
- A mobility clause acknowledging the SP’s military status and potential requirement for early termination.
- Property Restrictions: The property must not include a swimming pool or outdoor hot tub.
- Advance Payments:
- First and last month’s rent is typically required upfront.
- BDLS FA can arrange this payment if the SP has not yet opened a Canadian bank account.
SP must obtain BDLS approval prior to signing any lease. This ensures the contract contains no unusual or unacceptable terms and complies with MOD policy.
3. Compliance
Failure to adhere to the requirements in this policy may result in delays in ORA approval or reimbursement. SP are strongly advised to engage BDLS early in the property search process.
4. Rental Increases
Rental increases must be submitted to the BDLS Finance Administrator (FA) for review. Service Personnel must provide a copy of the lease showing the updated rental amount and complete a new ORA Application Form reflecting the revised rent and effective date.
4.1 Process for Submitting Rental Increases
- Obtain a copy of your updated lease showing the new rental amount.
- Complete a new ORA Application Form, including the revised rent and effective date.
- Submit both the updated lease and the completed ORA Application Form to BDLS FA for review.
- ORA entitlement will be amended to reflect the revised rental amount, subject to the approved rental ceiling.
5. End of Tenancy
Prior to departure, inform BDLS FA and the Global Admin Unit (GAU) of your March-Out date. They will ensure that your ORA Allowance is ceased from the correct date to include any payments made at the beginning of the tenancy (usually the last month’s rent).
5.1 Step by Step March Out Process
- Notify BDLS FA of your intended March‑Out date.
- Inform the GAU of your confirmed departure date.
- Await confirmation from BDLS FA that ORA cessation has been scheduled.
- Verify that any prepaid rent (such as last month’s rent) aligns with your tenancy end date.
- Complete all required March‑Out inspections and handover tasks provided by your landlord.
- Retain confirmation of ORA cessation for your personal records.
5.2 Handing Over to a Successor
Where practicable, Service Personnel (SP) are encouraged to support a smooth and professional handover of accommodation to their successor. This process is intended to maintain MOD standards, protect the interests of all parties, and assist BDLS in continuity planning. Any handover remains optional and does not remove the requirement for full BDLS approval and a new tenancy agreement.
The handover process should include the following:
- Notification:
The outgoing SP should inform the BDLS Finance FA if the property may be suitable for a successor, including the anticipated March‑Out date. - Information Sharing:
The outgoing SP may provide the successor with non‑binding information such as:- Landlord or property management contact details
- Current rental amount and utilities overview
- General condition of the property and any known issues
This information is advisory only and does not commit the successor to taking over the property.
- Professional Cleaning Standard:
Prior to vacating the property, the outgoing SP must ensure the accommodation is professionally cleaned to a standard equivalent to that required for a UK Service Family Accommodation (SFA) or Single Living Accommodation (SLA) quarter. This includes, as a minimum:- Full internal clean of all rooms
- Kitchens and appliances cleaned to a professional standard
- Bathrooms and sanitary fittings thoroughly cleaned
- Floors, carpets, and fixtures cleaned in accordance with the tenancy agreement
Evidence of professional cleaning may be requested by the landlord or BDLS if required.
- Condition and Handover:
The outgoing SP remains fully responsible for the condition of the property until the tenancy legally ends and must complete all landlord inspections and handover requirements. Any damage or deficiencies identified remain the responsibility of the outgoing SP. - Successor Responsibilities:
The successor must independently submit a draft tenancy agreement for review and obtain BDLS approval before signing. The successor is under no obligation to accept a property previously occupied by another SP.
This process does not constitute a transfer of tenancy and does not override MOD policy, JSP 752 requirements, or BDLS approval procedures.
