Contracted Out Tenancy at Will: A Brief Guide
A contracted out tenancy at will is a type of tenancy agreement that is commonly used in commercial property leases. It is a flexible arrangement that provides both the landlord and tenant with several benefits.
In a contracted out tenancy at will, the tenant occupies the property for a limited period of time, which is usually agreed upon by both parties. The tenant pays rent and other charges as agreed, and the landlord retains the right to terminate the tenancy at any time by giving reasonable notice.
One of the main advantages of this type of tenancy is the flexibility it provides to both parties. The tenant can use the property for a short-term project or event, without being tied down to a long-term lease agreement. The landlord, on the other hand, can use the property for other purposes or rent it out to other tenants once the agreed period of tenancy has ended.
Another benefit of a contracted out tenancy at will is that it is often cheaper to set up than a traditional lease agreement. There are usually no legal fees involved, and the agreement can be drawn up quickly and easily.
However, there are some considerations to bear in mind when entering into a contracted out tenancy at will. As the arrangement is not covered by the Landlord and Tenant Act 1954, the tenant has no automatic right to renew the tenancy once it has ended. It is therefore important for both parties to agree on the length of the tenancy and any renewal options before signing the agreement.
Additionally, the tenant may not have the same level of security of tenure as they would under a traditional lease agreement. This means that if the landlord decides to terminate the tenancy, the tenant will need to vacate the property.
In conclusion, contracted out tenancy at will can be a useful alternative to traditional lease agreements for short-term commercial property rentals. However, both landlords and tenants should be aware of the limitations and seek legal advice if necessary before entering into such an agreement.