For landlords and tenants who seek flexibility, periodic lease agreements that automatically renew every month or every week offer the freedom for both parties to part ways at their discretion. In other words, they won’t need to wait a year for a lease to end to move. In these rental situations, the party occupying the property is called a “tenant-at-will.”
They’re considered tenants-at-will because the tenancy is indefinite; they can terminate it anytime with adequate notice, as defined by their state’s landlord-tenant laws. Typical long-term lease agreements do not offer this flexibility. For people who need temporary housing due to a job relocation, frequent travel, or extended family visits, these periodic leases can help bridge the gap.
The same flexibility extends to landlords. At-will-tenancies provide landlords with more opportunities to use the property, renovate it, or adjust rent more freely to market conditions. Depending on the level of leeway they want for their property, landlords can leverage month-to-month or week-to-week agreements.
In-Depth: What is a Tenant-at-Will?
A tenant-at-will is an occupant of a rental property, typically on a month-to-month lease agreement with no definitive end date. Unlike tenants on fixed-term leases, tenants-at-will can leave the property at any time, so long as they provide the required notice, which is 30 days in most jurisdictions.
However, it’s important to understand that every state is different, and the notice period could be shorter or longer, depending on where you live.
Most often, tenants-at-will occur when a fixed-term lease expires, and the tenant remains on the property with the owner’s consent in exchange for continued rent payments. Other examples of at-will-tenancies occur when an oral lease agreement dictates the rental relationship.
For example, a family member or friend may move into the property without signing a formal agreement or paying rent. They’re considered at-will-tenants because they have the property owner’s consent to stay there. The laws regulating this relationship apply just as they would for more traditional long-term tenancies.
Pros and Cons of a Tenancy-at-Will
As noted, the key benefit of a tenancy-at-will is flexibility. However, that’s not the only positive. Of course, landlords and tenants should always understand the cons before entering into a tenancy-at-will agreement.
Pros
Easy termination: Depending on the state, either party can end the agreement with notice. As a result, tenants who need to move suddenly or landlords who want to reclaim their property can do so quickly.
No long-term obligations: Tenants who are unsure of their future plans can rest easy knowing they won’t need to wait a year or longer to make a move.
Potential for negotiation: Since tenancy terms are often more informal, there may be room to negotiate rent adjustments, property rules, or move-out timelines.
Cons
Lack of stability: Because either party in a tenancy-at-will can terminate the agreement at any time, tenants or landlords do not have the security of a long-term lease. For landlords, that could mean dealing with more vacancies than they might otherwise.
Rent adjustment uncertainty: In many cases, landlords are free to increase rent with minimal notice. As a result, at-will-tenants might face financial unpredictability.
Short-notice evictions: Be mindful of local laws, but landlords typically only need to provide short notice to terminate the lease, which can be stressful for tenants.
Tenant Rights in a Tenancy-at-Will Agreement
Depending on the nature of the relationship, typically, tenants-at-will have many of the same rights and responsibilities as other tenants. We’ll review the most common here.
Habitable premises: Landlords must provide safe and habitable housing even without a formal lease agreement. Requirements include running water, heat, and a structurally sound dwelling.
Privacy: Generally, tenants must provide reasonable notice before entering the dwelling. State-specific landlord-tenant laws define these requirements.
Quiet enjoyment: Tenants, whether at-will or not, have the right to peaceful enjoyment of their dwelling free from unreasonable disturbances.
Discrimination protection: Fair housing laws apply to all tenants. Landlords cannot discriminate against tenants based on protected classes like race, religion, or disability.
Tenant-at-Will Responsibilities
Again, many of these responsibilities apply to all tenants, but tenancies-at-will can differ if the tenant is not responsible for rent payments. For our purposes, we’ll assume a tenant held over following the natural termination of a fixed-term lease. These are their responsibilities.
Rent payment: Tenants-at-will are still obligated to pay rent on time. The amount and payment schedule may be agreed upon verbally or based on the previous lease agreement.
Property maintenance: Tenants are generally responsible for maintaining their living spaces and preventing damage that exceeds normal wear and tear.
Respect for property and other residents: Tenants must avoid activities, illegal or not, that could damage the property or encroach on other tenants’ rights to the quiet enjoyment of it.
Termination notice: Before moving out, tenants-at-will must provide notice as defined by state laws.
Landlord Rights
As in other tenancies, landlords have the right to certain aspects of the rental agreement relating to the property and tenant actions.
Rent collection: Landlords have the right to receive on-time rent payments.
Property access: Depending on the state, landlords can access a property with the required notice for inspections or repairs. Most states allow immediate access in emergencies.
Termination notice: Landlords have the right to receive adequate notice from an at-will-tenant if they seek to move out of the dwelling.
Landlord Responsibilities
Landlords have specific responsibilities to keep the living situation fair and honest. We’ll cover the basics.
Provide a habitable unit: Landlords must maintain a safe and habitable living environment, including essential utility services.
Respecting tenant privacy: Landlords must give reasonable notice before entering the tenant’s space, except in emergencies.
Understand just-cause evictions: In some states, simply supplying the required notice to the at-will tenant won’t suffice to end the rental agreement. The landlord must have just cause to end the tenancy. Reasons include habitually late rent payments, non-payment of rent, illegal activities on the property, the landlord or their family moving into the unit, or substantial renovations.
Final Words: Tenant-At-Will
Ultimately, a tenancy-at-will offers a unique balance of freedom and flexibility for both landlords and tenants. However, this arrangement also comes with a level of uncertainty not typically found in traditional fixed-term leases.
Before entering a tenancy-at-will agreement, landlords and tenants must carefully consider the pros and cons as well as their legal rights and responsibilities. Also, remember that having an agreement in writing is always a good idea.
When deciding whether a tenancy-at-will is right for you, be sure to account for your individual needs and circumstances. This arrangement could work for you if flexibility is a priority and stability isn’t a significant concern. However, those seeking more security might prefer to sign a fixed-term lease agreement.
