Renting Without a Lease

By Robert Griswold

Question: I share an apartment with friends. In the past, the owners of the building have asked for only one person to be on the lease and the others to informally sublet. I came in as a subletter. The leaseholder moved recently and I spoke to the landlord about signing the lease. He said he would get it to me, but now, two months later, I still haven't signed anything. From what I understand, my roommates and I are essentially squatters without a lease. What are the ramifications? Also, recently the landlord has been making improvements to the building. Should I worry that my rent will increase? Should I ask for a lease to prevent the rent from increasing?

Landlords' attorney McKinley replies:

Assuming you and your roommates are now paying the rent directly to the landlord, you are not squatters. You have, in effect, created an oral, month-to-month rental agreement between you and the landlord. This is sometimes referred to as a tenancy at will. A tenancy is a consensual arrangement for occupancy of the premises. Because the landlord is accepting your rent, it is implied that he has consented to your occupancy of the premises. An express, formal written rental agreement is not required to create a tenancy. Therefore, you have all the rights and responsibilities of a tenant under virtually all state tenant-landlord laws.

As a tenant at will, the landlord could terminate your tenancy by giving you proper written notice of termination of tenancy. In addition, the landlord could change the terms of your tenancy, i.e., raise your rent upon proper written notice.

It would probably benefit both you and your landlord to enter into a written rental contract. This would specify exactly what the rent is, any late fees, house rules, parking rules, and any other responsibilities or obligations of both parties. A fixed-term lease would specify the rent for the term of the lease, and would prevent rent increases during the term of the lease. However, be aware, that if your landlord chooses to offer you a lease, it may be at a higher rental rate than what you are currently paying.

Copyright 2006 Inman News.