A tenancy period is the amount of time designated on a lease agreement for real property. It is this duration of time that the lessee owes money and the time for which the lessor gives up possession of the property. The following are the most common tenancy periods utilized in lease agreements for residential or commercial property:
- Tenancy for a Term: A tenancy for a term arises when the parties have agreed on a termination date for the leasehold estate. If the term is for longer than one year, the Statute of Frauds usually requires that the agreement be in writing. Upon expiration of the term, the tenancy ends automatically.
- Periodic Tenancy: Periodic tenancy arises when the parties have agreed on a regular payment of rent but have not established any termination date. The period is automatically renewed when it expires unless either party has indicated they want to terminate the tenancy.
- Tenancy at Will: A tenancy at will exists when someone possesses another's land with her consent but without any agreement as to the termination or payment of rent. Either party may terminate it at any time, though most jurisdictions require some period of notice.
- Tenancy at Sufferance: A tenancy at sufferance arises when a tenant holds over after the expiration of his term without the landlord's consent. The landlord can elect to treat him as a trespasser or as a tenant for another period of time.
Do I Need a Real Estate Lawyer before Signing My Commercial Lease?
Commercial leases are very complex agreements with every provision open for negotiation. A real estate attorney will be able to provide you with the legal information you need and inform you of the type of tenancy is best for your business needs. A real estate attorney will also protect your interests when negotiating your commercial lease to ensure that the lease is the best lease possible for your business needs.