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What
is a Tenancy at Will Agreement?
Estate at Will Definition and Facts
Do you want
short term tenants or a lease you can end painlessly? Then a
tenancy at will agreement (also known as an estate at will) may just be
what you are looking for.
Learn all about this type of tenancy and how to manage a tenant at will
like a pro.
What
is a Tenancy at Will / Estate at Will and How does it Arise?
An at-will
tenancy tends to be a more informal type of rental arrangement since
there is no signed rental agreement between the landlord and tenant.
Although there are no formal legal documents involved, sometimes the
landlord and tenant will prepare a written note with the rent
amount and basic rules of the tenancy. In other cases, this type of
tenancy is simply a pure verbal agreement with zero paperwork.
There is no fixed time period for this type of tenancy as well. There
is no end date and the tenancy will continue as long as both you and
your
tenant at will wants it to go on.
What
are the Reasons for Having a Tenancy at Will / Estate at Will?
If you are
planning to sell your rental property soon or move in
to stay there yourself, this type of tenancy allows you to have a short
term lease that you can end your lease agreement quick and easy with no
penalty costs.
If you are looking for a more formal written type of rental agreement
that can be ended almost as easily, you may want to consider a periodic tenancy / month to
month lease.
Sometimes a this tenancy is formed because the landlord or
tenant is busy does not have the time or chance to finalise a formal
rental contract yet.
For example you are overseas when your tenant moves in and you can't
meet him face to face to sign the rental agreement. In this case, a
tenancy at will agreement is useful for as a temporary solution until
you return
home. This tenancy will end once your written lease agreement is signed.
Some landlords also prefer to make use of this type of tenancy to avoid
paperwork when they are renting out their property to trusted family
members. In this case, the landlord may ask for a token rent amount to
be paid by the tenant at will.
How
do You End a Tenancy at Will / Estate at Will with Your Renter?
Due to its
more informal and unbinding nature, it is highly quick and painless to
end this
type of tenancy.
If you want to discontinue your lease, you will just have to inform
your tenant 30 days before the due date of the next rent payment. While
you can do it verbally, we always recommend that you send your tenant a
written 30 day
notice to vacate to avoid
any potential problems.
Both you or your tenant have the right to end the tenancy without the
consent of the other party as long as you let the other party know in
advance.
An estate at will can also end once you sell your rental property or
rent it out to another person. However some areas have recently
enforced laws that require landlords to give their tenants a written
notice in advance so do double check just to be sure.
Want to learn MORE practical must-know facts on the
right tenancy type for you?
Return from
this Tenancy at Will Agreement / Estate at Will page to our Types
of Tenancy guide
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