What Is an Estate at Will?

An estate at will is a flexible rental arrangement that allows either the tenant or landlord to terminate the agreement at any time without the need for a long-term lease. This type of arrangement is helpful for individuals in search of short-term housing solutions or landlords looking for temporary tenants. An estate at will offers both parties flexibility and convenience, but a certain level of uncertainty, too. This means both landlords and tenants should fully understand the implications of entering into an estate at will before doing so.

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What Is an Estate at Will?

An estate at will, also known as a tenancy at will, is a rental agreement where the tenant occupies the property with the landlord’s consent but without a formal lease or specified duration. This type of arrangement allows either the landlord or tenant to end the tenancy at any time, with proper notice, usually 30 days.

This type of tenancy, or leasehold estate, can be beneficial for tenants who need temporary housing, such as someone relocating for work on a short-term basis or waiting for a home purchase to be finalized. Landlords who want to avoid the commitment of a long-term lease while still generating rental income may also want to take advantage of an estate at will.

Benefits of an Estate at Will

An estate at will offer several advantages for both landlords and tenants. These arrangements provide a level of flexibility that other types of rental agreements don’t. Benefits of an estate at will agreement include:

Making money on short-term arrangements: An estate at will allows landlords to earn income from the property on a short-term basis without committing to a long-term lease. This can be useful if the property is up for sale or if the landlord is unsure about their long-term plans for the property.
Profiting before a sale is finalized: If a landlord is in the process of selling a property, an estate at will provides a way to continue earning income until the sale is finalized. This short-term arrangement ensures that the property doesn’t sit empty, potentially reducing carrying costs associated with maintaining an unoccupied property.
Welcoming new tenants quickly: Landlords and tenants can establish an estate at will quickly and easily, making it an attractive option for landlords who want to fill a vacancy without taking the time to draft a formal lease. This efficiency can also benefit tenants who need to secure housing quickly, such as during a temporary work assignment or while waiting to close on a new home. This can help minimize periods of vacancy and maintain consistent rental income.
Ending a problematic tenancy immediately: For landlords, one of the most significant benefits of an estate at will is the ability to terminate the agreement without being bound by a long-term lease. If a tenant turns out to be problematic, the landlord can provide the required notice and end the tenancy, reducing the potential for long-term issues.
Assessing a new tenant’s behavior: For landlords who are unsure about a tenant’s reliability, an estate at will provide an opportunity to see how the tenant behaves in the property before committing to a long-term lease. This “trial period” can help landlords make more informed decisions about whether to offer a more permanent rental agreement.

Estate at Will Limitations

While an estate at will offers many benefits, there are also important limitations that both landlords and tenants should be aware of:

Landlord must give a 30-day notice before evicting a tenant: Although an estate at will allows for flexibility, landlords are still required to provide a 30-day notice before evicting a tenant. This requirement ensures that tenants have adequate time to find alternative housing, but it also means that landlords can’t immediately remove a tenant without proper notice.
Formal leases supersede estate-at-will arrangements: If a landlord and tenant sign a formal lease after an estate at will is established, the terms of the lease will supersede the original arrangement. This means that both parties must adhere to the new terms, and the flexibility of the estate at will doesn’t apply.
Standard protections for tenant and landlord still apply: Despite the informal nature of an estate at will, standard legal protections still apply to both the tenant and landlord. This includes rules around eviction, property maintenance and tenant rights. Both parties should be aware of these protections and comply with local laws.

Other Types of Leasehold Estates

Estate at-will agreements are only one type of leasehold estate. Other agreements may make more sense in certain situations, including:

Estate for years: This common type of tenancy involves an agreement that outlines a start and end date for a tenant occupying a property.
Estate from period to period: This type of agreement has no end date. For example, this could be a month-to-month lease. Like an estate at will, one party has to give notice to end this type of agreement.
Estate at sufferance: This tenancy involves the tenant occupying the property after the lease ends, so there’s no written contract.

Is an Estate at Will a Good Idea?

An estate at will has clear advantages for both landlord and tenant, but there are disadvantages, too. This type of agreement can be a good idea in some, but not all, situations.

An estate at will could be a good idea if you’re a landlord or tenant who’s prioritizing flexibility. Maybe you’re a landlord considering selling your property or you’re a tenant trying out a new neighborhood. An estate-at-will agreement can provide housing for the tenant and income for the landlord without needing to plan for the long term. These arrangements can also work well for friends or family members who already have trust in one another before getting into a landlord-tenant relationship.

On the other hand, if you’re looking for stability and a more formal agreement, an estate at will may not be best. If you’re a tenant looking for a long-term rental or a landlord wanting guaranteed income for some time, consider another type of lease agreement.

Bottom Line

An estate at will is a flexible and convenient option for both landlords and tenants who need a short-term or temporary housing arrangement. While it offers many advantages including quick occupancy and the ability to end the tenancy at any time, it also comes with certain limitations. Consider these pros and cons before entering into an estate-at-will agreement, and consult a real estate advisor if you’re serious about making the most of your real estate investments.

Tips for Real Estate Investing

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If you’re just getting started on your journey, consider our guide on how to invest in real estate.