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Tenancy At Will

Tenancy At Will is a type of tenancy agreement that can be especially pertinent for landlords and investors. This is a leasehold estate that either the landlord or the tenant can terminate at any time upon providing reasonable notice. No formal agreement exists stating the duration of the tenancy, and it’s not for a specific, predetermined period. Typically, rent is paid on a monthly basis, but the essential characteristic of a tenancy at will is that it can be terminated “at will” by either party. This is in contrast to fixed-term tenancies, where the lease agreement specifies a certain duration of time for which the lease will be in effect.

There are various reasons why this arrangement might be used in the real estate investment industry:

  1. Flexibility: For some landlords or investors, there may be uncertainty about long-term plans for a property. A tenancy at will arrangement allows them the flexibility to make decisions as circumstances evolve without being tied to a fixed lease term.
  2. Short-term Occupancy: It might be suitable for tenants who are unsure about their duration of stay or are awaiting the completion of their permanent residences.
  3. Test Period: Some landlords might use a tenancy at will as a kind of “trial period” before committing to a longer lease with a tenant.

However, it’s also worth noting that because of the inherent instability of this kind of agreement, it might not always be attractive for tenants who desire housing stability or for landlords who want assured occupancy. As with any real estate agreement, both parties should be clear about the terms and understand their rights and responsibilities.