If you’ve ever run a rental property business, you have probably come across the terms tenants at will and tenants at sufferance. One (at will) is a relatively common scenario, while the other (at sufferance) is a more complex condition that landlords need to know how to navigate. So, what is a tenant at sufferance in real estate? According to Texas law, the term “tenant at sufferance” refers to the legal status of a tenant with an expired or terminated lease who continues to occupy the rental property without the property owner’s consent. Still a bit confusing? Continue reading and let me explain how a tenant at sufferance works in real estate and how it affects you as a landlord and property owner.
Key Takeaways
- A tenant at sufferance refers to the status a tenant holds when they stay in the property after their lease ends or without the landlord’s consent.
- The key difference between a tenant at sufferance and a tenant at will is landlord permission.
- State law requires landlords to go through the legal process to formally evict a tenant at sufferance and regain possession of the property.
What Does Tenant at Sufferance Mean?
Even if you go through the list of property management companies near me and ask about a tenant at sufferance, they will probably say the same thing – that it is one of the most difficult scenarios that any landlord or property manager has to deal with. But what is it exactly?
As we’ve mentioned earlier, a tenant at sufferance is the status or legal category a tenant holds when they continue to live in a property with a terminated or expired lease. How this works is that you have a tenant with a lease agreement that has ended (naturally or via termination). However, they refuse to vacate your rental property and continue to live there even without a new lease and without your permission.
During this unusual period, the tenant “suffers” a lack of or limited contractual rights, since they are residing in the property illegally. At this point, landlords have the option to negotiate a new lease or have the tenant legally evicted to regain possession of the property.
Tenant at Sufferance vs Tenant at Will
Now you may be wondering, what about a tenancy at will? What is it, and how do they differ from those categorized as a tenant at sufferance?
To start, a tenant at will is the same in the sense that they have an expired or terminated lease, but they do not vacate the rental property. However, a key element of tenancies at will is that they have the permission of the landlord to do so. Meaning, they have expressed their plan to continue residing in your rental property, even with an ended contract, and you agree and allow them to.
This is a temporary condition that usually happens when you’re negotiating the terms of the lease during renewal, converting the lease to a month-to-month agreement, and the like. In some cases, the tenant simply asks for a bit of extension while they wait for their move-in date or look for a new place.
The kicker here is your consent. Tenants at will have your full permission to stay without a lease because you’re comfortable enough to let them do so. Furthermore, you have an agreement and an understanding of their legal status and rights while they stay in your rental property, setting the expectations for both parties.
Legal Status of a Tenant at Sufferance
With this in mind, let’s look at what is a tenant at sufferance means when discussing a tenant’s legal status, rights, and expectations. First, let’s clear up one thing: a tenant at sufferance is generally not considered as a trespasser since they gained access to your property legally with their initial lease contract. But, now that they are staying in your rental unit against your wishes, they lack the protective rights that is indicated on the lease.
Despite this, tenants at sufferance are still covered by landlord-tenant regulations. This means that you cannot simply lock them out or force them to move out without going through the formal and legal eviction process, as indicated by the Texas Property Code. Specifically, you are not allowed to change the locks on the property, cut off their utilities, or intimidate them into leaving.
When it comes to rent, a tenant at sufferance is still liable for the payments (rent, utilities, and other fees) that accrue throughout their unlawful stay. However, some discourage landlords from accepting payments when an eviction is underway, as it can complicate the legal process. Particularly, it’s possible for the court to see the acceptance of rent payment (regardless of whether it is full or partial) as giving consent, which can delay or invalidate the filed eviction.
How Landlords Should Handle Tenant Sufferance Situations (How to Avoid in the Future)
So, how should landlords like you handle situations when a tenant with an expired or terminated lease refuses to vacate your property? With all things considered, one of the first tips we have to offer is to address the matter at hand calmly. We know how frustrating it can be to deal with such problems, especially if you already have a new tenant lined up, but don’t let your emotions get to you.
So, once you’ve noticed that your tenant has no plans to vacate the property, address the matter at hand immediately through legal procedures. Review your lease agreement and confirm that their contract has already expired. Then, verify if they communicated their desire to extend their lease or move out. It’s possible that they let other people know (your property manager, family member, or staff), and the message didn’t reach you.
Now, if the case is that they are, in fact, staying in your rental property unlawfully, you need to provide them with a formal Notice to Vacate. In Texas law, you only need to provide tenants at sufferance with at least three days of written notice to vacate before you proceed to file of a formal forcible detainer/eviction suit. From then on, the court will handle the case and enforce its ruling for you to legally regain possession of your property.
But how do you prevent this from happening in the future? Here are some tips:
- Pay close attention to tenants close to the end of their lease and consistently communicate about their plans (extend or vacate) a month or two before the lease ends.
- Consider including a holdover clause in your lease that will automatically convert an expired contract into a month-to-month lease at a significantly higher rent (typically 150%-200% increase).
- Avoid vague verbal agreements allowing tenants with an expired lease to stay in your property; instead, put everything in writing to avoid abuse or disputes.
- Sit down with your tenant and conduct a pre-move-out walkthrough to set the expectations for the proper turnover of the rental unit.
How Bay Property Management Can Help
As a landlord, you dream of having a seamless rental property business where you lease your property to tenants for a certain period of time and have them leave when their contract is up. However, there are cases where the process of turning over the property back to you doesn’t go as smoothly as you want it to. Tenants at sufferance puts your rental property business at a significant disadvantage and risk. That is why it’s important that you understand how tenancy at sufferance works and how landlords like you should navigate such situations.
Don’t want to deal with tenants at sufferance? Working with apartment companies that manage rental properties can help you avoid or resolve such situations. Professional property managers oversee your rental operations – from rent collection to monitoring lease expiration dates and handling eviction processes. Whatever the case may be, property management teams can lighten your load and protect your rental property business from liabilities and risks. Interested? Contact us today to learn more about our services.