Lease or Tenant-at-Will Agreement: Which is Better?

We believe that a lease is much better as it keeps tenants in a legally binding contract for the full lease term, which can be up to a year or longer.

Each time a unit is rented, the landlord has to pay a fee, which generally ranges from one-half to a full month’s rent. Ideally, a tenant stays for at least one year, limiting the landlord turnover costs for cleaning, repairs, and the rental fee.

A Tenant-at-Will agreement is only for 30 days, so tenants are more likely to stay for a short period, increasing the frequency of turnover costs for the landlord.

If a tenant does need to break a formal lease, they are legally responsible for the unit until it is rented again. If they need to break the contract and the landlord is amenable to it, the tenant usually will pay the rental fee, which is often much less expensive overall than being on the hook for the rest of the original rental term.

From a seasonality standpoint, people usually find it is best not to end a lease in the winter months. You can alter the lease terms to ensure that it does not end in the winter if you are open to it.

In addition to the effect that seasonality has on lease agreements, we’ve also noticed that people with good credit usually stand by their word and commitment when signing a lease and honor their contract without defaulting on the lease to maintain their high credit scores.