A periodic lease is an agreement between a landlord and tenant for an indefinite term, with rent paid on a weekly, monthly, or yearly basis. Termination requires adequate notice, and can occur in cases of implied or expressly specified periodic leases. At-will leases can be terminated without notice, and fixed-term leases end on a specified date.
In real estate law, a periodic lease refers to an agreement between a landlord and a tenant in which the tenant occupies a property on a periodic basis. The rent can be set on a weekly, monthly or yearly basis. Alternatively, although less common, the landlord and tenant can agree on another time frame. Usually, no formal termination date has been set and the lease is for an indefinite term.
Periodic leasing can occur for both commercial and residential properties and mainly arises in a couple of different cases. Most commonly, it occurs when a tenant continues to live in a property after a formal written lease has ended. This is considered an implied periodic lease. In other situations, landlord and tenant may enter into a written agreement expressly specifying the periodic lease period. These lease agreements can be beneficial because they provide landlords and tenants with the ability to terminate leases on relatively short notice.
Termination of a periodic lease normally occurs when one party gives the other adequate notice. Normally, the notice must be for a full period, unless otherwise provided by law or agreed in writing between the parties. For example, if the periodic rent is monthly, the cancellation should be communicated one month in advance. If adequate notice is not provided, the tenancy may be terminated with the agreement of the landlord and tenant or with a court order. As a rule, cancellations must be made in writing.
A term lease is different from an at will lease, which is an arrangement in which a landlord or tenant can terminate a lease without giving notice to the other party. An at will lease is often formed if the parties have not entered into a formal lease agreement. It can also occur if the tenant has not offered consideration, such as a rent payment, for the rent. For example, an at-will tenancy may be created if a person allows a relative to live in their home without entering into a formal agreement.
Many jurisdictions also distinguish between periodic leases and fixed-term leases. When the term is set, the parties usually enter into a written agreement specifying a date on which the lease ends. Neither the landlord nor the tenant are required to give notice of withdrawal. The lease simply ends on the date stipulated in the contract.
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