Tenancy at will is based on an oral agreement between the landlord (who rents out the property) and the tenants (who wish to reside there), where either party can end the arrangement at any time by giving immediate notice. It’s the simplest and most informal lease agreement, as it doesn't require a written agreement outlining a fixed lease term or specific rent amount.
Now, let's explore the tenancy at will definition and different types of tenancy in more detail so you can understand it fully and feel confident when entering this arrangement.
What Is a Tenancy at Will?
Tenancy at will is a flexible lease arrangement where the exact duration and terms—such as the leased property, lease conditions, and the parties' rights and responsibilities—are not strictly defined.
This arrangement allows the landlord and tenant to agree on basic terms, such as monthly rent and due date, on a verbal basis, without a written contract. The key feature of a tenancy at will is its flexibility, as it doesn't impose a strict timeline for how long the tenant can occupy the property, nor does it establish any terms for either party.
This type of lease is ideal for situations where both parties are comfortable with a more informal and adaptable arrangement. The landlord receives rental payments, while the tenant can occupy the space for as long as it suits their needs.
Importantly, either party has the right to terminate the lease at any time simply by providing notice to the other party.
How Does Tenancy at Will Work?
Tenancy at will works in a simple way, which is why it’s often considered the ideal rental arrangement for cousins and friends. In these cases, the tenant may stay on the property with the landlord's consent but without a formal agreement that defines detailed rights, obligations, or the duration of the lease.
Typically, tenants under a tenancy-at-will arrangement will occupy the property for a short time, and the terms may be less formal or specific than in a traditional lease. Another tenancy at will example is when a previously written lease with set terms has expired, but the tenant and landlord continue the arrangement informally.
In other words, even though the original lease term has ended, the parties continue to operate as before—the tenant stays in the property, and the landlord receives the payments. However, either party can now end the ongoing agreement with no predetermined end date.
This flexibility benefits both landlords and tenants, as it allows for a seamless transition from a fixed-term lease to a more open-ended, adaptable rental arrangement.
Other Types of Tenancies
In addition to tenancy at will, there are other types of tenancy arrangements recognized by law, each carrying unique legal implications:
Tenancy at Sufferance
A tenancy at sufferance occurs when a tenant continues to occupy the property after the lease agreement has expired without explicit consent from the landlords. This term “by sufferance” means that the tenant remains solely because the landlord has not yet taken action to evict.
This situation commonly occurs with leases set for a fixed time, in which tenants may overstay without a formal renewal or new agreement. In this case, the landlord can initiate eviction proceedings or establish a new tenancy agreement with the tenant.
Holdover Tenancy
A holdover tenant is similar to a tenant at sufferance in that they remain in the property after the lease expires. However, the main difference is that the tenant continues to pay rent in a holdover situation, and the landlord accepts it. This act of collecting rent can be seen as an informal agreement to extend the lease.
Rent agreements are often set for a fixed term, typically six months or one year, which gives both parties a sense of security if they wish for a more extended rental arrangement.
However, these fixed terms are often chosen out of convenience rather than necessity, and both parties may be comfortable with the tenant staying beyond the expiration without initiating a formal renewal or signing a new lease agreement.
Tenancy at Will vs. Fixed-Term Lease
Tenancy at will vs. periodic lease (fixed-term lease) are two common lease types, each with distinct advantages. To help you decide which option best suits your needs, let’s explore a comprehensive comparison of these two options.
Flexibility vs. Security
One of the biggest differences between tenancy at will and fixed-term lease is the level of flexibility and stability each offers.
Tenancy at will provides significant flexibility, allowing either the tenant or the landlord to end the lease at any time, often with just a 30-day notice. This arrangement is ideal for those who may need a temporary living situation, like someone who is relocating for work on a short-term basis.
However, tenancy at will is less secure, as there is no guarantee of housing beyond the next 30 days if the landlord decides to terminate the tenancy.
On the other hand, a fixed-term lease lays on security by establishing a defined term (six months, one year, or longer) during which the tenant has the right to stay in the rental property. With this lease type, both parties are obligated to honor the agreement until the end date, making it more difficult to terminate without cause.
Legal Protection
A tenancy at will, being informal, generally offers fewer legal protections than formal leases. So, while tenants and landlords retain their rights, there may be no appropriate notice periods or eviction procedure regulations.
In contrast, a fixed-term lease is typically characterized by a written contract that outlines rights, duties, and specific terms about each element of the lease. So, it offers comprehensive legal protection for both parties, which can help prevent misunderstandings and disputes between landlord and tenant.
Cost Consideration
With a tenancy at will, rent arrangements are often more flexible. This means landlords can increase the rent on shorter notice, especially if there’s no written agreement that limits these changes. This can be beneficial for some tenants but may also be challenging for those who prefer stable costs.
In contrast, fixed-term leases usually lock in a set rent for the entire lease period, protecting tenants from sudden rent raises. This stability makes it easier to budget and manage their finances, as tenants know exactly how much they’ll be paying each month.
How Does Vacating Tenancy at Will Work?
As previously mentioned, in a tenancy at will, either the tenant or landlord can end the agreement at any time. This is usually done by giving a tenancy-at-will notice period of around 30 days, though this can vary by state.
This short notice period gives tenants flexibility to move out without a lengthy commitment and allows landlords to regain control of their property without waiting for a fixed lease to expire.
When a tenant decides to leave, they simply provide the required eviction notice in writing, giving the landlord time to plan for renting to someone else. Similarly, if the landlord initiates a tenancy-at-will termination, they must give the tenant the same notice period. In this case, tenants should be prepared to find new housing on short notice.
After providing the eviction notice, both parties should ensure any final responsibilities are met, such as paying rent and fulfilling cleaning or repair requirements. In the end, landlords must return the deposit within the timeframe set by state law, minus any necessary deduction for repairs or unpaid rent.
When Is Tenancy at Will a Good Option?
Whether a tenancy at will is a good option depends on the tenant’s and landlord's specific needs and circumstances. Here's when it may be ideal:
Ideal Scenarios for Tenancy at Will
For tenants who:
Need the ability to move on short notice without being locked into a long-term lease
Are unsure how long they’ll stay in a specific location, such as those in temporary work assignments or between homes
Want to move quickly without committing to a fixed term
For landlords who:
Need to quickly regain control of the property, such as for personal use or selling
Are uncertain about how long they want to rent the property
However, both parties should be aware of the potential risks. For example, on one hand, tenants may face unexpected eviction with short notice. On the other hand, landlords may face higher turnover if they don't manage the arrangement well, such as by failing to set clear expectations, communicate effectively, or maintain the property.
Legal Considerations for Tenancy at Will
Even without a formal lease, a tenancy at will is legally binding. It gives both landlords and tenants enforceable rights and obligations and ensures legal protection for both sides. The following key legal considerations should be kept in mind in such arrangements:
Eviction Rules
In a tenancy at will, eviction procedures remain applicable even without a formal lease agreement. So, as mentioned before, either party—the landlord or tenant—may terminate the tenancy at any time, but they should provide proper notice beforehand.
While no specific reason for eviction is required in these arrangements, landlords are strictly prohibited by law from evicting tenants based on discriminatory, retaliatory, or otherwise unlawful grounds. In such cases, tenants can contest any eviction they believe violates legal protections or is unjust.
Notice Period Requirements
Tenancy-at-will arrangements are subject to statutory notice requirements even without a formal lease. Most state laws mandate a minimum notice period—typically 30 days—before the tenant must vacate the property.
However, this timeframe may vary depending on local regulations or specific circumstances, such as property damage cases, where shorter notice periods may apply.
Landlord-Tenant Rights and Responsibilities
Landlords and tenants in tenancy at will have clearly defined rights and responsibilities under general legal principles.
For landlords, this includes providing a safe and habitable living environment and maintaining the property in good condition. On the other hand, tenants are obligated to use the property responsibly, adhere to its intended purpose, and pay rent as agreed.
Although these rights and responsibilities are not explicitly outlined, as there is no formal contract, they are established under state and local law. As a result, violations of these duties by either party can lead to legal consequences.
How to Transition From Tenancy at Will to a Lease Agreement
Transferring a tenancy at will into a formal lease agreement is often a practical choice for both landlords and tenants.
For landlords, a lease agreement ensures a certain and predictable rental income by establishing a fixed term and agreed-upon rent payments. It also outlines other terms, such as rent adjustment policies, maintenance responsibilities, and property usage.
On the other hand, lease agreements offer tenants stability and legal protection. It ensures they can stay in the property for the agreed time and protects them from sudden rent increases or unexpected eviction.
However, the transition from tenancy at will to a lease agreement means drafting a formal document. Although it may seem complex, Contracts.net lease agreement builders can drastically simplify the process, which includes gathering key information, such as:
Essential Information for Drafting a Lease
Property address
Rent amount
Payment due date
Lease term
Each party’s rights and obligations
Required disclosures (lead-based paint disclosure or mold disclosure)
Security deposit terms
After gathering these details, follow the builder’s guided prompts to input the details. The tool automatically organizes this information into a professional, legally sound lease agreement. This means you’ll have a complete document ready for review and signing with zero hassle and in no time.
Final Thoughts
If you’re wondering, “is tenancy at will a lease?", the answer is no—it’s not a formal lease, as it doesn’t include the specific terms and conditions typical of a lease agreement.
However, this informal arrangement offers flexibility, allowing landlords and tenants to continue their rental relationship without being tied to fixed terms or duration.
Despite lacking a formal written contract, a tenancy at will is still legally enforceable, as both parties have rights and responsibilities under state law, such as the tenant’s obligation to pay rent and the landlord’s duty to maintain a habitable property.
Tenancy at Will FAQ
Without a lease, tenants have basic rights under state law, including the right to live in the rental property in a habitable condition.
A tenancy at will and a month-to-month lease are similar but not identical. The former can be terminated by either party with very short notice, while the latter typically requires a 30-day notice.
Yes, a landlord can increase rent in a tenancy at will, but they must give proper notice. Moreover, they can do so at any time, depending on the terms of the agreement and state laws.
Yes, tenants in a tenancy at will have legal protections such as protection from discrimination and the right to a habitable living space.
Yes, a landlord can evict a tenant without a lease as long as a proper eviction notice is given. In a tenancy at will, this typically requires a 30-day notice, but tenants must still be allowed time to vacate the property.
