What does oral lease mean?

An oral/verbal lease exists when there is no written lease to serve as a contract between a landlord and his or her tenants. An oral lease agreement is one of the most informal ways that a landlord can rent a property to another person.

Can a landlord give a tenant an oral lease?

While a tenant and landlord can orally agree to a lease, there are some limits to how long an oral lease can last. Michigan law requires contracts for longer than one year to be in writing. If a tenant and landlord try making an oral lease for any time longer than one year, a judge may decide it is not valid. Tenancy at Will Top

What are the advantages of an oral lease?

Know the laws specific to your area before you agree to an oral lease. One of the biggest advantages to an oral agreement is that can be easy to modify and change terms on short notice. If it’s a month-to-month lease, the renter could reach out to the landlord directly over the phone to give 30-days notice if they intend to move.

How to protect yourself from disputes with oral leases?

The best way to protect yourself from disputes with oral leases is to have a written lease drawn up and signed by your existing tenants and any future ones. Our lawyers can help you produce written leases that protect all of your interests, and you can learn more when you contact us for a consultation.

Do you need to give notice of termination of oral tenancy?

It is also vital that you factor enough time into your plans to allow effective notice to be given. It is worth noting that an oral periodic tenancy can also attract protection under the security of tenure provisions of the Landlord and Tenant Act 1954.

Why do landlords need a written rental agreement?

Most rental agreements are written because oral agreements can be subject to misunderstandings and are difficult to prove if there’s a dispute. A written rental agreement can be a formal contract or simply a copy of a letter stating the rights and obligations of both the landlord and tenant.