National Real Estate Exam (PSI)ContractsHard
A one-year residential lease expires, but the tenant remains in possession and continues paying rent, which the landlord accepts without objection. Under common law, what type of tenancy is now created?
- ATenancy for years, automatically renewed for another full year
- BTenancy at will, terminable only with 90 days' notice
- CPeriodic tenancy, typically running month-to-month based on the rent payment interval
- DTenancy at sufferance, since the tenant has no legal right to remain
Show answer & explanationAnswer & explanation
Correct answer: C. Periodic tenancy, typically running month-to-month based on the rent payment interval
When a lease expires and the landlord accepts continued rent from a holdover tenant, most jurisdictions convert the arrangement into a periodic tenancy (commonly month-to-month, matching the rent payment interval), rather than automatically renewing the original lease term.
Why the other options are wrong
- A. Automatic renewal for a full year is not the default rule; that would require an explicit renewal clause.
- B. Tenancy at will typically requires no notice under common law, and this scenario better fits periodic tenancy since rent is being paid regularly.
- D. Tenancy at sufferance applies only when the landlord has NOT accepted rent or consented to continued occupancy.
Holdover Tenancy
A tenant who remains in possession after lease expiration; if the landlord accepts rent, this typically converts into a periodic tenancy based on the payment interval.
- Landlord's acceptance of rent is key to creating periodic tenancy
- Without landlord's consent, tenant is at sufferance (a trespasser essentially)
- Periodic tenancy usually mirrors rent payment period (e.g., month-to-month)
- Landlord can also choose to evict rather than accept rent
Memory trick: Accept the rent, accept a new (periodic) tenant