Tenant Rights Without a Lease

Updated 10/24/24

Renting to tenants without a formal, signed lease is more common than many landlords may realize. Whether it’s a temporary arrangement, a verbal agreement, or a simple oversight, tenants who occupy a rental unit without a lease—often referred to as at-will tenants—still have legal rights. As a landlord, understanding tenant rights without a lease is essential for maintaining compliance with the law and fostering a positive landlord-tenant relationship.

In this article, we’ll explore the rights of tenants without a lease in California, common pitfalls for landlords, and what to expect in situations where a tenant refuses to sign a lease or the agreement is verbal.

What Are Tenant Rights Without a Lease?

Tenants who occupy a rental property without a formal, written lease are often classified as at-will tenants. This type of tenancy is typically month-to-month and governed by the same basic legal principles as other tenancies, even in the absence of a lease agreement. While the lack of a lease might suggest fewer protections for tenants, California law ensures that tenants still enjoy many rights that landlords must respect.

Here are some of the key tenant rights without a lease that landlords need to be aware of:

Right to Written Notice for Termination

One of the most important rights tenants have is the right to proper notice before termination. Landlords cannot simply demand that an at-will tenant leave immediately. California law mandates specific notice periods based on the length of tenancy:

If the tenant has lived in the unit for less than one year, the landlord must provide at least 30 days’ notice before terminating the tenancy.
If the tenant has lived in the unit for more than one year, the landlord must provide at least 60 days’ notice.

This applies whether or not there is a written lease. These notice requirements give tenants reasonable time to make alternative housing arrangements, ensuring they are not left in a vulnerable position when it comes to housing.

Quiet Enjoyment of the Property

Even when renting without a lease, tenants are entitled to “quiet enjoyment” of the property. This legal principle ensures that tenants can live in their rental unit without undue interference from the landlord. In practical terms, this means that landlords cannot harass, intimidate, or unnecessarily disrupt the tenant’s life in the unit.

For example, a landlord cannot repeatedly enter the tenant’s space without notice or permission. In California, landlords are required to provide at least 24 hours’ notice before entering the unit, except in emergencies. Violating this right could expose the landlord to legal action, even in cases where the tenant does not have a formal lease.

Rent Payment and Rent Increases

In a month-to-month arrangement, the tenant is responsible for paying rent on time, even without a formal lease agreement. However, rent increases are subject to specific notice requirements under California law. The rules for rent increases in a renting without a lease situation are the same as for tenants with a formal agreement:

For rent increases of less than 10%, landlords must provide at least 30 days’ notice.
For rent increases of 10% or more, landlords must provide 60 days’ notice.

These protections prevent sudden and drastic rent hikes, ensuring tenants can plan and budget accordingly.

Security Deposit Rights

Even if a tenant moves in without a lease, landlords are still required to follow California’s laws regarding security deposits. The maximum amount a landlord can charge for a security deposit is two months’ rent for an unfurnished rental and three months’ rent for a furnished unit. When the tenant moves out, the landlord must return the security deposit or provide an itemized statement of any deductions within 21 days.

If there is no forwarding address provided by the tenant, landlords must send the itemized statement to the last known address—typically the recently vacated rental unit. If the tenant has submitted a change of address with the post office, the letter should be forwarded.

Tenant Responsibilities

Though tenants may not have a written lease, they are still expected to comply with certain responsibilities. Primarily, tenants must:

Pay rent on time, as agreed.
Maintain the unit in a reasonable condition.
Avoid causing damage beyond normal wear and tear.

Failure to meet these obligations can result in eviction proceedings, even for an at-will tenant. In California, tenants are entitled to receive proper notice and go through a legal eviction process if they fail to fulfill these responsibilities.

Converting an At-Will Tenancy to a Fixed-Term Lease

In some cases, landlords and tenants may choose to convert a month-to-month tenancy into a formal lease. This can offer benefits to both parties. A fixed-term lease provides landlords with more certainty, as it guarantees tenancy for a set period (often one year), and gives tenants the assurance of stable rent and tenancy terms.

If you’re considering converting an at-will tenant to a fixed-term lease, ensure that all the terms are clearly outlined in writing. This can prevent misunderstandings and disputes down the road. A lease agreement should cover essential points like rent amount, due dates, rules regarding property use, and the process for requesting repairs.

When a Tenant Refuses to Sign a Lease

Occasionally, a tenant may refuse to sign a formal lease, preferring to continue on a month-to-month basis. As a landlord, it’s important to weigh the pros and cons of this arrangement. While a month-to-month agreement offers flexibility, it also comes with risks, such as the tenant leaving with little notice or disputes over verbal agreements.

If a tenant refuses to sign a lease, consider discussing the reasons behind their hesitation. Open communication can sometimes resolve concerns and help transition to a more formal agreement. However, if you are not comfortable continuing with a month-to-month tenancy, you have the right to terminate the tenancy by providing proper notice in accordance with California law.

Pitfalls to Avoid When Renting Without a Lease

Renting to a tenant without a lease can lead to several potential issues if not managed carefully:

Verbal Agreements: Verbal agreements can be difficult to enforce if a dispute arises. It’s always better to have clear, written documentation of any agreements made, even in a month-to-month tenancy.
Inconsistent Payment Terms: Without a lease, there’s a higher chance of confusion regarding payment dates or late fees. Ensure that any expectations around rent payment are clearly communicated and documented.
Eviction Challenges: While month-to-month tenancies allow for flexibility, they can also make it harder to remove problem tenants. Ensure you follow California’s legal process for evictions and give proper notice before taking any action.

Understanding Tenant Rights Without a Lease

Even when a tenant rents without a lease, they are entitled to important legal protections. As a landlord, it’s crucial to understand these tenant rights without a lease, such as notice requirements for termination, quiet enjoyment, and rules surrounding rent increases. Staying informed of the legal framework surrounding at-will tenants ensures that you remain compliant and can avoid potential disputes.

If you’re managing a rental property and have concerns about tenants renting without a lease, it may be time to consider formalizing the arrangement with a fixed-term lease. However, if you prefer the flexibility of a month-to-month agreement, ensure that both you and the tenant are clear on the terms and that all legal requirements are met.