December 4, 2022

Moo Trade

Finance Blog

What Are The Benefits Of Entering A Tenancy At Will Agreement? Find Out Here

When you are renting a CRE or putting your property at rent, there are a number of agreement types that you can choose to get into with your tenant or landlord. Tenant at will is one such agreement, which technically is not an agreement at all. It is not a lease or contract that has any specific details mentioned on them to signify the start and the potential end of the contract. A tenant at will is a type of agreement which, put simply, just means you are allowed to stay as long as you like as long as you keep paying the rent. However, this agreement can be terminated at any point by any of the parties.

A tenant at will agreement is considered a verbal agreement, however, in some cases, there can be a written accord of the agreement where the rent and its due date are mentioned, but that agreement is not considered a lease. So, given that you have to trust the word of your landlord or tenant, where is the security? And how is it going to be beneficial for you? Let’s find out!

3 Benefits Of Entering A Tenancy At Will Agreement

For Landlords, It’s Great If You Want To Sell The Property

As a landlord, having no legal obligation/binding that stops you from selling or renovating the property at your wish can be a great choice. A tenancy at will agreement will allow you to enter into a temporary agreement with your tenant while providing them with the knowledge that you intend to sell or renovate the property shortly. If the tenant agrees to your verbal deal, congratulations, you now have a tenant at will without any legal obligation looming over you.

For Tenants, It’s Great If You Want A Temporary Stay

As a tenant, if you are in need of a constant movement or if you want a temporary stay that’s less than a year, it’s beneficial for you to actually go for a tenant at will agreement rather than a leasehold agreement. In this way, you will be able to be free from legal obligations and leave the property when you need to without any prerequisites. The flexibility can be an excellent way for you to save some money and ensure you are quick with your movement.

Saves A Lot Of Extra Costs For Both Landlords & Tenants

When you enter a lease agreement, the process of terminating the contract is long and arduous. As a landlord, you have to go through exit inspections and refund security deposits. As a tenant, too, you have to go through a complicated process to ensure your agreement is terminated correctly. So, it’s much easier to just enter into a tenancy at will agreement as it helps you save extra investments like security deposits.

Conclusion

As good as it sounds to be in agreement with someone without legal obligations, it is scary too because, as mentioned, the agreement can be terminated at any point based on the wish of only one party. So make sure you do due diligence about the person with whom you are about to enter the agreement. And to learn more about the tenancy at will agreement and its nuances, click here.