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Type of Lease

Term Lease

When the landlord and tenant sign a lease, that lease may be for a set period of time, called the “term” of the lease. Most term leases last for one year, but there is no limit on how long a term lease can be. During the lease term, the lease can only end if the landlord and tenant mutually agree to terminate it early (see Mutual Termination), or if either the landlord or the tenant violates the lease in some way.

At the end of a lease term, the lease may terminate with notice, may become a month-to-month periodic lease, or may renew for another term if the lease specifically provides for that renewal. If a term lease of one year does not state what happens at the end of the lease term, it automatically becomes a month-to-month lease. Generally, a 30-day notice is required to end a lease at the end of its term; however, the lease may require a longer notice.

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