Here is our summary of the guide on Legalo’s Tenancy at Will template which a landlord can use for letting its commercial property on a relatively informal, short-term basis. The template is not as detailed as a lease would be – the tenancy at will is designed to be a much briefer agreement than a lease.
This is not a substitute for a proper lease where (a) a longer-term letting is wanted, (b) where the premises will be exclusively occupied by the tenant or (c) if greater protection is sought by the landlord. Legalo have a template for a Lease available if you need one.
You may also consider using a Licence to Occupy instead if the premises are being shared with others, e.g. the landlord, and used not exclusively by the tenant and are expected to be let for a fairly short term (say, up to 12 months).
Clauses in the Tenancy at Will
Date – Fill in only the year right now. The rest can be completed when signed by the parties.
Party clauses – Fill in the names of the parties and their addresses here.
Numbered clauses of this Tenancy at Will
1. Interpretation – In this clause we have defined the terms used.
- Permitted Use – Fill in what the tenant is permitted to use the property for. You can link this to the planning law classifications of use, but, if not, delete the rest of the definition.
- Permitted Hours – The details of the hours the tenant can use the property should be filled in here.
- Property – Identify the building and its address here. A scale plan may help.
- Rent – The amount of the rent should be filled in here. This is the “basic” rent payable under the tenancy at will. Set it high enough to cover:
a. service charges charged on shared areas of the property;
b. non-domestic rates and water rates (but not other utilities charges); and
c. buildings insurance.
2. Grant of tenancy – This provides for an indefinite period of rental – it can be terminated by either party immediately on notice. (If either party seeks a longer period of notice or a more definite period of occupation, perhaps a lease would suit the parties better.)
3. Tenant’s obligations – In clause 3.1.1 state when the monthly rent falls due. Clause 3 lists what the tenant must do or must not do and that the tenant is responsible for a fair share of the utilities costs.