Most residential leases also include a description of the type of tenancy provided by the lease. There are some basic tenancies you should be familiar with:
Periodic Tenancy: A periodic tenancy is the right to lease property for a set period of time. This can be month-to-month or year-to-year.
Month-to-Month Tenancy: With a month-to-month tenancy, the landlord agrees to lease his or her property for one month. Generally, the landlord and tenant automatically renew the terms of their agreement each month unless written notice is given. Depending on the state, tenants may be required to provide written notice up to 30 days before they wish to vacate.
With a month-to-month tenancy, both the tenant and the landlord have greater flexibility. A tenant can typically leave with one month's notice. On the flip side, the landlord may be able to increase the rent more frequently, subject to local rent control laws.
Year-to-Year Tenancy: A year-to-year tenancy is an agreement in which the landlord leases property to a tenant for up to a year. This tenancy offers less flexibility but more stability. For the landlord it may mean less turn-over, while for the tenant it means the rent is fixed for one year.
Term Tenancy: A term tenancy is an agreement in which the landlord leases property to a tenant for a set term. This tenancy offers almost no flexibility but a lot of stability. Typically, the only way out of this type of lease, apart from mutual agreement, is for one party to break the contract. For the landlord it means less turn-over, while for the tenant it means the rent is fixed for the entire term.