Depending on your situation, you may want a lease to end on a specific date or automatically renew after a certain amount of time. These options are known as fixed-term and periodic leases. Both types of leases carry their own advantages and disadvantages.
Fixed-Term Lease
A fixed-term lease has a predetermined end date. This type of lease specifies the start and end dates of the lease. Sometimes, a fixed-term lease can automatically convert into a periodic one at the end of the term. Alternatively, a landlord and tenant can create and sign a new lease with updated dates and information at the end of a lease term, or the tenant can move out. Generally, fixed-term leases are more rigid and require more commitment from both parties.
Periodic or Month-to-Month Lease
A periodic lease does not have a set end date and automatically renews after a certain duration. The most common example of a periodic lease is month-to-month. With this type of lease, the tenancy remains until either the landlord or tenant provides the other with appropriate notice signifying they want the lease to end. Periodic leases provide landlords and tenants with more flexibility to end tenancies as needed.