A lease agreement that automatically renews for a specific period, such as week to week, month to month, or year to year, until either the landlord or tenant terminates it, establishes a recurring possessory interest in real property. For instance, a tenant who initially signs a one-year lease but remains on the property after the term expires, continuing to pay rent accepted by the landlord, may inadvertently create this type of tenancy based on the rental payment schedule.
This form of rental agreement offers flexibility to both parties. Landlords benefit from a continuous income stream without the need to actively seek new tenants repeatedly, while tenants gain the ability to relocate with relative ease, provided proper notice is given as dictated by the agreement or local laws. Historically, these arrangements arose from practical needs, facilitating short-term occupancy while providing a predictable structure for both owner and occupant.
