Tenancy at Will: Uses and Risks
Written by Scott Jones, founder of CommercialPropertyKiln · Last updated
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A tenancy at will is a flexible, precarious arrangement that either party can end at any time. It has genuine uses, but also traps for the unwary landlord.
What it is
A tenancy at will lets a tenant occupy with the landlord's consent on the basis that either party can end it at any time. It has no fixed term and, importantly, no security of tenure under the 1954 Act, which is why it is used as a stopgap.
When it is used
The common use is a bridge: letting a tenant into occupation while a formal lease is negotiated, or holding over at the end of a lease while terms are agreed, without creating a protected tenancy. It keeps things flexible for both sides.
The risks
The danger is that a tenancy at will can turn into a protected periodic tenancy if it is allowed to run on and rent is paid and accepted on a regular basis in a way that looks like a term certain. If that happens, the tenant may acquire security of tenure you never intended to grant. So a tenancy at will should be genuinely temporary and properly documented.
Do it properly
Use a short written tenancy at will agreement, keep it genuinely temporary, and move to a proper contracted-out lease if the occupation is to continue. Take advice, because the line between a tenancy at will and a protected tenancy is where landlords come unstuck. See licences vs leases.
What is a tenancy at will?
An arrangement either party can end at any time, with no fixed term and no security of tenure, used as a bridge while a lease is negotiated.
What is the risk of a tenancy at will?
It can turn into a protected periodic tenancy if it runs on and rent is accepted regularly, so keep it genuinely temporary.