Tenancy-at-Will Australia 2025: Rights, Risks & What Changed

Tenancy-at-will is a little-known but sometimes crucial arrangement in the world of Australian property rentals. If you’re a renter, landlord, or property manager, understanding this flexible (but risky) form of lease is essential—especially as 2025 brings new legal clarity to the table. Here’s what you need to know about tenancy-at-will, how it works in Australia, and why it’s suddenly back in the spotlight.

What Is Tenancy-at-Will—and Why Does It Matter?

At its core, a tenancy-at-will is an informal, open-ended rental agreement. Unlike fixed-term or periodic tenancies, a tenancy-at-will doesn’t have a set end date or regular renewal cycle. Instead, it continues as long as both the landlord and tenant are happy for it to do so. Either party can end the agreement at any time, usually with very short notice.

• No fixed term: The lease can be ended by either side at will, often with as little as seven days’ notice.

• Minimal paperwork: Sometimes, tenancy-at-will arises when there’s no formal lease, or after a fixed-term lease expires but no new agreement is signed.

• Limited legal protections: Rights and responsibilities can be unclear, so both parties face risks.

While tenancy-at-will is rare—especially in regulated markets like NSW and Victoria—it sometimes emerges in unique situations, such as when tenants stay on after a lease expires, or during a property sale.

Tenancy-at-Will in 2025: New Legal Clarity

Recent changes to state-based rental laws in 2025 have brought new attention to tenancy-at-will. Here’s what’s changed:

• Victoria: The Residential Tenancies Amendment (Clarity for Tenancy-at-Will) Act 2025 now requires written notice for any at-will tenancy, with a minimum of 14 days’ notice to vacate—up from the previous 7.

• NSW: The Fair Trading (Residential Tenancies) Update 2025 has clarified that tenants at will must be given at least 21 days’ written notice, unless both parties agree otherwise.

• Queensland and WA: No major legislative change in 2025, but tenancy-at-will remains a legal grey area—often defaulting to periodic tenancy rules if rent is paid regularly.

This push for clarity is a response to increased rental market pressures, with more Australians facing uncertain lease extensions and landlords seeking flexible options in a shifting economy.

Risks and Benefits: Should You Ever Agree to a Tenancy-at-Will?

While the flexibility of tenancy-at-will can be appealing, it’s not without its downsides. Here’s what to consider:

• For tenants: There’s almost no security. Your living situation can change at very short notice, making it hard to plan or settle in.

• For landlords: The ability to end a lease quickly can be useful—say, if you want to sell the property—but you may also face sudden vacancies and lost rental income.

Tenancy-at-will may make sense in situations such as:

• Short-term rental needs (e.g., a tenant waiting for a home to settle, or a landlord planning a renovation)

• Transition periods between fixed-term leases

• Family or informal arrangements

However, most experts recommend formalising your rental agreement wherever possible. The new 2025 rules are designed to reduce ambiguity, but at-will arrangements still lack the protections of standard leases.

Real-World Example: Navigating Tenancy-at-Will in a Tight Market

Consider Jane, a Melbourne tenant whose 12-month lease ended in February 2025. With the landlord unsure about selling, Jane agreed to remain on a tenancy-at-will basis. When the property sold unexpectedly, she was given 14 days’ notice—just enough time to find a new place, but far less security than a periodic lease would provide. Jane’s story highlights the trade-offs: flexibility, but with substantial risk.

How to Protect Yourself in a Tenancy-at-Will Arrangement

• Get it in writing: Even if not required, a written agreement clarifies notice periods and responsibilities.

• Understand your notice period: Check your state’s 2025 requirements to avoid surprises.

• Communicate regularly: Stay in touch about any plans to end the tenancy or make changes.