The four basic forms of Tenancy are:
The estate for years; is the most common type of leasehold interest in real property. It is actually any estate created for a fixed period of time and need not be for even one year.
The term must be certain: The key feature distinguishing the estate for years from other tenancies is that both the beginning and the ending date are fixed or computable. However, a tenancy may be an estate for years and still be terminated by some event. For instance, if the tenant doesn't pay rent.
No notice is required to terminate: An estate for years, by definition, contains its own termination date. On the last day it simply ends, without notice, and the tenant must leave the property.
No maximum duration: Most states do not require any outside limit on the length of a tenancy for years; so even a thousand year lease would be upheld in most states. A few states have statutorily imposed length limits on certain kinds of leases, however, such as mineral or farming rights.
Note: The Statute of Frauds requires "a lease for more than one year must be written" The original Statute of Frauds dates from 1677 English law and provided that any lease for more than three years must be in writing. (Otherwise an Estate at Will is created.) The belief that encumbrances on real property must be written has led to similar governing statutes in each of the American States. Most statutes, however, now require that any lease for more that one year must be in writing. A majority of American courts have also held that the fixed term and any option periods are added together; if the total exceeds the statutory period a written lease is mandated.
Periodic tenancy; commonly known as week to week or month to month or year to year, is a tenancy which continues from one period to the next automatically, unless either party terminates it at the end of a period, by notice, which is usually the length of the rental period.
Distinguished from tenancy for years: While a tenancy for years automatically expires when it reaches the end of its stated term, a periodic tenancy continues indefinitely, until terminated by one of the parties with proper notice.
Creation of periodic tenancy; is normally created by inference, with the period determined by how often the rent is due. However, it is also possible to create a periodic tenancy by an express agreement which fixes the length of each period.
Arising from holdover: Another way a periodic tenancy can arise is when a tenant holds over at the end of a fixed term lease. In the event of holdover, the landlord has the choice of either evicting the tenant at the end of the lease or permitting them to stay; in which case the tenancy becomes periodic.
Termination of tenancy: A periodic tenancy will automatically be renewed for a further period unless one party gives a valid notice of termination. Under old common law, six months notice was necessary to terminate a year-to-year tenancy, and one period's notice where tenancy was for less that one year. Today most states have statutes regulating the notice rule and typically require only thirty days notice for any tenancy, even year-to-year. Contract law, however, usually allows for agreement on longer - or even shorter notice - if spelled out clearly in the written agreement.
Due process right: Normally either party to a periodic tenancy has a right to terminate without cause if the proper notice requirements are met. In publicly financed or subsidized housing, however, the tenant may have a right to due process and may not be evicted without cause.
Tenancy at will; is a tenancy which has no stated duration and which may be terminated at any time, by either party.
No notice to terminate: Under common law, no prior notice of termination is required, as it is for periodic tenancies. However, a tenant must be allowed a reasonable time to remove their goods after the landlord demands possession. But modern statutes in most states give a tenant at will the same rights to prior notice as is available to short-term periodic tenants, resulting in no clear distinction between tenants at will and periodic tenancies.
How at-will tenancies arise: The parties can create a tenancy at will by expressly agreeing that either may terminate at any time. Generally, however, that kind of tenancy is created by implication when circumstances create the tenancy.
Terminable at the will of only one party generally does not make the tenancy one that is at will. Instead, the tenancy is usually analyzed by what it would be without the right of termination and interpreted accordingly.
Event caused termination can result from the death of either party, or upon the conveyance of the reversion by the landlord. A rent increase will also effectively terminate the tenancy at will, and a new one is created if the tenant starts paying the new rent. An assignment of their leasehold interest by the tenant also terminates the tenancy at will, however, most courts hold that sub-leasing does not terminate.
Tenancy at sufferance exists only in one limited situation; where a tenant holds over at the end of a valid lease. This "tenancy" is extremely insubstantial and will end as soon as the landlord exercises his option to either evict or hold the tenant to another term.
Landlord's right of election allows him to choose between evicting the tenant by using applicable law and treating him as a trespasser, or holding him to another term as tenant. Under his right to that election, the landlord can bind the holdover tenant to an entire new term. Most states allow the landlord's option even though the tenant has no desire to remain for an entire additional term.
Common law takes strict view: The common law took an extremely strict view of holdovers, if only for just one day, and even if had been virtually unavoidable. The law generally gave the landlord the right to bind the tenant for an entire new term no matter the reason for holdover. Modern courts are, however, more sympathetic and lenient toward tenants. Although, the landlord's right to elect a new term is preserved, the courts recognize extenuating circumstances, particularly for only short holdover periods.
How a landlord exercises his option to bind a tenant to another term, may of course be by written notice. But an oral notice will also usually be sufficient. Furthermore, if the tenant pays rent for the premises following the termination date, and the landlord accepts this rent, he will probably be deemed to have elected to hold the tenant for another term.
Length and nature of new tenancy: The courts do not agree on whether the new tenancy is a term of years or a periodic tenancy. They are also in dispute as to the length of the term or period. Most courts have held that a periodic tenancy is created with the period determined by the way rent was calculated under the original lease. Thus, a lease that called for annual rent, even if payable monthly, would be interpreted as having a one year period.
Other provisions of a holdover term except length remain the same in the holdover tenancy as were those contained in the original lease. In absence of an agreement to the contrary, the rent remains the same as does the allocation of duties between the landlord and tenant, including the duty to maintain and repair.
Election is binding: Whatever choice the landlord makes, termination or renewal, becomes binding on him as well. If he elects to hold the tenant to another term, he cannot later change his mind and evict; conversely, if he starts eviction proceedings, it is to late to decide to bind the tenant to a new lease.