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Tenancy for Years

DEFINITION

Lease that terminates after a fixed period of time. The lease does not automatically renew unless all parties agree to the extension.

EXPLANATION

A tenancy for years — also known as an “estate for years” or a “fixed-term lease” — is a lease with a clear beginning and end date. They are typically used for short-term or seasonal leasing.

A tenant will pay rent to a landlord on a specified payment schedule. Following the end of the lease period, the landlord controls the power to renew the agreement. If the landlord chooses not to renew, the lease ends automatically and no formal written agreement is required.

This type of lease is typically a month to month lease and is also referred to as a periodic tenancy. This type of tenancy is commonly confused with another common type of lease called a tenancy at will.

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